The Premier League faces the prospect of legal challenges from both clubs and players if it pushes ahead with controversial new financial regulations that would cap spending regardless of club earnings.
Legal warnings over proposed spending caps
Maheta Molango, chief executive of the Professional Footballers' Association, has issued a stark warning that clubs will take legal action against the Premier League if it introduces 'top-to-bottom anchoring' rules. The proposed system would limit the amount any club could spend on their squad to five times the smallest central Premier League broadcasting and prize money payout.
Top-flight teams are scheduled to vote on the measure during a crucial meeting on November 21. The PFA has already enlisted prominent sports lawyer Nick De Marco KC, who successfully challenged similar EFL plans for a salary cap in 2020.
Major clubs oppose financial restrictions
Several leading clubs have already expressed opposition to the anchoring concept. Manchester City, Manchester United and Aston Villa are understood to have voted against further exploration of the idea back in April last year.
Molango told BBC Radio Four's Today programme: "We have a tendency in football to think that we are above the law. The reality is that you cannot artificially cap someone's ability to make a living as this would just not withstand any legal challenge."
The PFA chief warned that legal action from his organisation should be the least of the league's concerns, predicting that clubs within the Premier League itself would mount their own legal challenges before the players' union needed to act.
Alternative financial measures under consideration
Clubs are also expected to vote on whether to introduce squad-cost ratio rules, which would limit spending to a maximum of 85 per cent of revenue on squad-related costs. This approach mirrors UEFA's system, which restricts clubs in European competitions to spending up to 70% of revenue on squad costs including wages and transfer fees.
The Premier League has defended its consultation process, with a spokesperson stating: "We disagree with the PFA's views regarding the proposed financial rules and the extensive consultation process we have been conducting with our clubs and other stakeholders."
Meanwhile, the PFA is working to arrange a meeting with Premier League captains next week to discuss the anchoring proposals. Sources close to the debate suggest the outcome of any vote on anchoring remains difficult to predict, with some clubs concerned about the EFL potentially adopting similar rules in the Championship.
As the November 21 vote approaches, clubs may ultimately decide to maintain the existing profitability and sustainability rules rather than adopting the more controversial anchoring system.
