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Premier League clubs have voted in favor of drawing up plans to introduce spending caps.
A majority of clubs voted in favor of the Premier League carrying out the final economic and legal analysis necessary to develop a spending cap model.
The model will be presented to clubs at a general meeting in June and, if voted in favor, will replace the profit and sustainability rules currently in place from the 2025-26 season onwards.
Manchester United, Manchester City and Aston Villa voted against introducing a spending cap on Monday, while Chelsea abstained.
The league's current financial rules have seen Everton and Nottingham Forest penalized eight and four points respectively this season, and have been criticized for favoring the clubs with the highest revenues.
What are the current rules?
The Premier League's profit and sustainability rules allow clubs to lose £105m over three seasons.
The Premier League says the current regulations aim to ensure the long-term financial sustainability of clubs and maintain the league's competitiveness by preventing “undue advantage”.
What is UEFA's Financial Fair Play Model?
When the idea of moving away from profit and sustainability rules was first mooted, it was expected that Premier League clubs would move to the model adopted by UEFA.
Under UEFA rules, clubs can use no more than 70% of their revenue for team expenses.
This means the amount they can splash out is limited by the amount of cash they generate.
What happens next?
The Premier League will now develop a spending cap model.
Monday's vote pertains only to the development of the model, not its implementation.
Premier League clubs will meet again at a general meeting in June, where Premier League analysis and models could be presented.
A discussion of the model will then take place before a vote is taken.
Analysis – Simon Stone
The sentiment of clubs opposed to the spending cap plan was that it could disadvantage teams that have built up huge revenues through years of sporting achievements and commercial innovation.
Furthermore, it is believed that by leveling competition within the Premier League, there is a risk that it will undermine competitiveness in competition with European clubs and threaten the Premier League's standing from a global perspective.
