As Premier League clubs prepare to vote on a new “salary cap” system known as anchoring, new data suggests that Manchester City, Manchester United, and Chelsea could face severe penalties if the rule were to take effect.
The proposed rule would restrict clubs from spending more than five times the broadcast and prize money earned by the team finishing last in the Premier League on their total “football squad costs.” These costs include player wages, amortised transfer fees, and agents’ commissions.
Based on the 2024/2025 season figures, that limit would be set at £546 million. Any club exceeding the threshold could face significant sanctions.
The anchoring system would work alongside the new Squad Cost Ratio (SCR) regulations, which cap spending at 85% of a club’s revenue, replacing the current Profit and Sustainability Rules that allow losses of up to £105 million over three years.
For the proposal to pass, it needs the support of 14 out of 20 Premier League clubs. However, Manchester United’s part-owner Sir Jim Ratcliffe has voiced strong opposition, warning that it could harm the league’s competitiveness.
“Anchoring would inhibit the top clubs in the Premier League,” Ratcliffe said. “And the last thing you want is for the top clubs not to be able to compete with Real Madrid, Barcelona, Bayern Munich, or PSG. That would be absurd. It would stop the Premier League from being the best in the world.”
According to financial estimates based on Swiss Ramble’s 2023/2024 wage and amortisation data, Manchester City, Manchester United, and Chelsea would all breach the proposed cap if it were already in place.
Under the draft sanctions, a second breach would trigger a six-point deduction, with an additional point deducted for every £6.5 million overspent.
If applied this season, Manchester City could face a 23-point deduction, while both United and Chelsea would also suffer heavy penalties — a scenario that has left the league’s biggest spenders deeply concerned.
