Premier League clubs have voted in favour of developing plans to introduce a spending cap.
A majority of clubs voted in favour of the Premier League doing the final economic and legal analysis needed to create a spending cap model.
The model will be presented to clubs at June’s AGM and – should clubs vote in favour then – it 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 the possible introduction of a spending cap on Monday, while Chelsea abstained.
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The league’s current financial rules, which have seen Everton and Nottingham Forest penalised eight and four points respectively this season, have been criticised for favouring clubs with the highest revenue.
The Premier League’s Profit and Sustainability Rules permit clubs to lose £105m over a three-season period.
The Premier League says the current regulations are designed to try to ensure the long-term financial sustainability of clubs and maintain the competitive nature of the league by preventing “unfair advantages”.
When the idea of moving away from the Profit and Sustainability Rules was first discussed, it had been anticipated that Premier League clubs would move towards a model adopted by Uefa.
Under Uefa rules, clubs can spend no more than 70% of their revenue on squad costs.
This means the amount they can splash out is limited by the amount of cash they generate.