The Premier League is to introduce a cost cap for clubs, despite opposition from Manchester City and Manchester United

The majority of Premier League clubs have agreed to set a future spending cap, calculated from the TV rights received by the worst placed club.

Premier League clubs have agreed to cap future spending in the English Championship, British media reported on Monday, as a way to narrow the wide gap between the mighty and the less fortunate.

The measure, adopted by a majority of first division clubs, will still need to be ratified at the next Premier League general meeting, in June, to take effect from the 2025-2026 season.

The two Manchester clubs vs

Defending champions Manchester City, neighbors Manchester United and Aston Villa voted against the proposal, while major club Chelsea abstained, British media including Sky Sports detailed.

The “spending cap” is intended to replace the Profitability and Viability Rules (PSR) currently used by the Premier League, for which Everton and Nottingham Forest have been sanctioned this season.

The expenditure cap (salaries, transfer fees, fees paid to agents, etc.) will be calculated based on the TV rights received by the worst placed club. This system called “anchoring” will be limited to five times the amount the lowest paid club receives under Premier League broadcast deals, according to The Athletic. For example, last season’s bottom team, Southampton, received almost €122m (£104m).

According to the Times, however, the clubs must be confident that no cap will force them to reduce consumption from the current level.

Everton and Nottingham have been punished with a withdrawal of points this season for breaching the current rules of PSR, a kind of English “financial fair play”. Clubs cannot lose more than £105 million over a three-year period. A number of other clubs are close to crossing that line, leading to a massive drop in spending in the January transfer window.

Proponents of the “spending cap” highlight the rise in Champions League revenue and the financial power of state-backed clubs, such as Manchester City and Newcastle, to respond to those who decry a future weakening of the Premier League, the richest and most watched championship in world.