The Premier League Did Something Right?

As an American, I do not enjoy the highs and lows of relegation and promotion within my borders. International football has introduced me to title fights and relegation battles that I could never dream of happening in the States. What I never understood was how recently promoted teams could afford to thrive in highly competitive leagues.

Current Spending

The league has many rules and regulations to keep the playing field fair. However, rules do not stop teams from spending above their means. Last summer, Chelsea went on a spending spree of 434.5 million pounds and spent over 1 billion pounds in the last three spending windows. 

Spending over the given means does come with penalties. Everton and Nottingham Forest were deducted points this season for violating finance rules, and Forest is now facing relegation. Manchester City has also been quite a controversial team, as they have 115 charges against them, but the Premier League has yet to deal with them.

Even with all the rules set in place, big clubs still find ways to avoid being penalized, and smaller clubs that spend more to keep up with the pace of the league face charges and relegation. The Premier League is also to blame for this, as they know that Manchester City is the third most profitable team in the league, behind Liverpool and Manchester United, and relegation for City would hurt the league. 

Premier League Proposal

A new spending cap might be introduced in the 2025-2026 season following the agreements from sixteen teams. The spending cap allows teams to spend five times the amount of the lowest-paid club (payments from television). For example, if a newly promoted club only makes 90 million pounds in broadcasting revenue, teams can only spend 450 million dollars on wages.

This cap would allow newly promoted teams to compete in a fairer environment than before, and a gap would be bridged between ultra-rich and poorer clubs. However, this could also incentivize powerhouse teams to spend more than they currently are in wages. There is still a final vote, but the Premier League is heading in the right direction to make itself sustainable.

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