Premier League clubs agree to trial two new spending cap systems

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The Premier League says clubs will trial two new forms of spending caps from next season. Teams in England’s top division will trial a “Squad Cost Rules” system limiting spending on players to 85% of a club’s soccer revenue and net profit or loss on player sales.

FILE - A Premier League logo is visible on the shirt of Everton’s goalkeeper Jordan Pickford during the English Premier League soccer match between Tottenham Hotspur and Everton at the Tottenham Hotspur Stadium in London on Sunday, Sept. 13, 2020. The Premier League says clubs will trial two new forms of spending caps from next season. Teams in England’s top division will trial a “Squad Cost Rules” system.

A second system called “Top to Bottom Anchoring” limits — or anchors — spending to a multiple of the lowest combined prize money and cash from TV rights forecast to be earned by a team. The league said the systems aimed to “improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League” as well as “promote aspiration of clubs.”

The league’s current financial regulatory system, “Profitability and Sustainability Rules,” will remain in place while the alternatives are being trialed. The trials were non-binding, the league said. Under PSR rules, which allow clubs to make losses of up to 105 million pounds over a three-year period, Everton and Nottingham Forest were

 

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