Manchester City boss Pep Guardiola has downplayed the impact of a proposed salary cap rule in the Premier League, saying England's top tier will "always be a strong league". The 20 clubs will vote on the new regulations next month. It is believed that City and their local rivals Manchester United are opposed to the idea, and are expected to go against the proposal.
Premier League salary cap: What you need to know
The new rule would see spending on player wages and transfer-related fees "anchored" to the revenues of the Premier League's bottom club. Teams would be limited to spending five times the lowest earner's revenues generated by prize money and broadcast income.
Based on current revenues, that would see Premier League clubs' spending capped at £550m ($728m) per year on their playing staff, as 20th-placed Sheffield United earned around £110m in the 2023-24 season. City's latest wage bill stood at £412m ($553m). However, it is possible that some clubs would already be in contravention of the new rules, if they are voted in. Suggested sanctions would include "a minimum six-point deduction plus a point for every £6.5m of overspend", according to an insider quoted in .
Clubs in England already operate under Profit and Sustainability Rules, which allow them to post losses of £105m ($141m) across a three-year timespan.
The Professional Footballers' Association (PFA) is considering legal action if the new rule is introduced, as it could negatively impact players' wages. Several clubs are against the idea, with both Manchester sides and Aston Villa, voting against the original proposal when it was floated in March of last year. Chelsea abstained.
AdvertisementGuardiola unfazed by salary cap discussions
Despite the protests of his employer, Guardiola does not feel the proposed regulations would severely impact the Premier League's ability to compete on the continent. Speaking ahead of City's league clash with Everton on Saturday, the Catalan suggested he has had little input into the club's response to the vote.
"I have my (own) opinion about that," Guardiola said. "I didn't speak with my CEO, Ferran (Soriano). We'll wait. I think what the clubs decide will be fine. In the end every decision, every rule, always there are positives and negatives. We'll see. I think the Premier League will always be a strong league. In many things it is the best, in other things it can be better. What the clubs decide will be fine."
Further reaction to proposed Premier League salary cap
Guardiola's level-headed response is in a wildly different key compared to other voices in the football worlds. An insider is quoted in as saying: “If we bring in these anchoring rules, it could dramatically affect the Premier League’s ability to attract the world’s best players. How can that be in the best interest of English football?”
Manchester United owner Sir Jim Ratcliffe took a similar line when the plans were first introduced in March 2024. He suggested the Premier League could be giving up it's competitive advantage over Europe's elite if they voted through the proposal. "The last thing you want is for the top clubs in the Premier League not to be able to compete with Real Madrid, Barcelona, Bayern Munich, PSG – that’s absurd. And if it does, it then ceases to be the finest league in the world," he said.
While those other 16 clubs that appear to be broadly in favour of the new rules have not been as forthcoming with their opinions, another insider quoted in has suggested many of those organisations are "sleepwalking" into the potential new era.
“Many clubs don’t have a particularly strong view on this issue because they don’t think it will affect them given their current spending levels. It feels like we are actually sleepwalking into this," they said.
GettyNo easy answers on sustainable financing in English football
It's hard to think of a proposed rule change that could have higher stakes for the competitive balance of the Premier League. With clubs at the lower reaches of the table unable to match the revenue-generation of the elite teams, this proposal will look enticing. However, with many of the most powerful executives in the land and the PFA against the proposal, even if the motion is passed it is unlikely that will be a telling conclusion in the ongoing debate over financial fair play in the world game's most lucrative domestic competition.
Next month's vote could be the most important result in the Premier League this season. Far more important than any fixture played between two teams.