English Premier League clubs have unanimously approved a new salary cap designed to promote financial equality, a measure that immediately faces strong opposition from players and legal experts who criticize it as anti-competitive.
Starting with the 2026/27 season, clubs will be restricted to spending a maximum of 85% of their revenues on player wages, commissions, and agent fees. The league stated this initiative aims to foster “equality of opportunities for clubs.”
The Professional Footballers’ Association (PFA) has threatened legal action, asserting players were not consulted on a proposal that could limit their earnings. Leading UK law firms also argue the new rules violate free competition laws.
Maheta Molango, Chairman of the PFA, warned against the unilateral imposition of such rules. He stated, “You cannot limit someone’s ability to earn a living,” emphasizing that football is not “above the law.”
Legal experts characterize the cap as “an abuse of the League’s position of power” and an “illegal restriction of trade” by “artificially limiting clubs’ spending capacity.”
Despite the criticism, the salary cap received full backing from all Premier League clubs. This approval came alongside a new short and long-term sustainability law, which assesses clubs’ ability to meet economic commitments.
The Premier League’s new financial system aligns with UEFA’s regulations, which permit only 70% spending. Nine English clubs already adhere to the UEFA rule due to their participation in European competitions.
Clubs, however, rejected a broader spending cap that would have tied overall squad expenditures to the lowest-ranked team’s TV rights and prize money. Only seven clubs voted in favor of this proposal.
Under the rejected plan, clubs in the 2023/24 season would have been limited to spending approximately $674 million USD on their squad.
Violations of the approved 85% salary cap will trigger a tiered sanction system. Clubs exceeding the 85% “green limit” but staying below a “red limit” will face fines.
Clubs surpassing the “red limit” of 115% of spending will incur a fixed six-point deduction. This penalty increases by one point for every approximately $7.9 million USD spent over that threshold.