How Liverpool voted as Premier League clubs agree to introduce spending cap

Premier League clubs have agreed in principle to introduce a new spending cap in a bid to promote better sustainability across the division, The Times reports.

Sixteen of the league's clubs are believed to have voted in favour of the measure known as "anchoring" at a meeting in London on Monday. This would restrict clubs from spending more than a multiple of the broadcast revenue of the league's lowest-earning club.

Under this proposed system, from the 2025-26 season onwards (the season after next), clubs would only be allowed to spend five times the amount of the bottom club's broadcast revenue.

Last season, that was Southampton and Premier League figures show that the South Coast club received $130m (£104m/€122m) in TV money.

Therefore, under the proposed system, if it were implemented now, the spending cap for all clubs would be set at around £500 million for wages, transfer and agents' fees combined.

The ruling will now go to an AGM to discuss key details, including the exact size of the cap and whether it could potentially be open to challenge in court under competition law.

Did Liverpool vote in favour of spending caps?

Of the 20 Premier League clubs voting, Manchester City, Manchester United and Aston Villa reportedly voted against the notion, while Chelsea abstained.

Liverpool, therefore, voted in favour, with club owner John W. Henry publicly advocating for such a measure in the past to ensure competitive balance within the league.

In April 2023, Henry told the Liverpool ECHO: "There are ever-increasing financial challenges in the Premier League.

"The league itself is extraordinarily successful and is the greatest football competition in the world, but we’ve thought for some time there should be limits on spending so that the league doesn’t go the way of European leagues where one or two clubs annually have little competition.

"Excitement depends on competition and is the most important component of the Premier League."

Liverpool's spending compared to other EPL clubs

Unsurprisingly, the two teams with the highest wage bills in the league, the two Manchester clubs, made up two of the three teams to vote against the measure.

According to Capology, United have the highest gross combined wage bill in the league, at £3,821,000 per week.

City come second on the list, with a gross combined wage bill of £3,705,000 per week.

Chelsea, who also voted against, came in fourth place with £2,978,000 - just after Arsenal (£3,298,000) and ahead of Liverpool (£2,670,000).

Despite a big spending spree last summer to revamp the entire midfield, the Reds are believed to be nowhere near the proposed limit.

Based on the most recent figures, Manchester City would also comply - but only just.