Stefan Borson: This is how much Man City can spend under new Premier League rules
Manchester City have joined forces with Manchester United in their bid to prevent new financial rules coming into effect.
The finances of Premier League clubs have been a hot topic of debate over the past couple of years after some teams have exploited loopholes to avoid potential penalties, while others have landed points deductions.
The Premier League is looking to impose a ‘salary cap’, with a vote set to take place over the introduction of top-to-bottom anchoring rules (TBA) at the next meeting of the 20 top-flight clubs on 21 November.
Under the TBA rules, clubs can only spend five times the amount the bottom side receives on squad-related costs, such as wages, agents’ fees and amortisation.
Man City and Man United are against the adoption of the new system, which would run alongside the new squad cost ratio (SCR) rules.
What rules do Premier League clubs currently operate under?
Former Man City financial adviser Stefan Borson exclusively told Football Insider the cap for Premier League clubs would be around £600m under the proposed system.
Premier League clubs currently operate under the profit and sustainability rules (PSR), where they are only permitted to make £105million of losses over a rolling three-year period.
Speaking exclusively to Football Insider, Borson said: “It’s not a salary cap as such.
“It’s effectively the consequences of bringing in the rule would be that there could potentially be some impact on wages because the way that it seems to work is it’s really just a version of the squad cost control rule that Uefa currently have and that the Premier League were also thinking of bringing in.
“Effectively what you would have is not only a percentage cap of your revenue, but you would also have layered on top of that a hard cap as well of what looks like right now to be about £550m probably for this current season.”
Next month’s vote will decide whether the top-flight sides adopt either – or both – of the TBA and SCR models, replacing the PSR rules.
Man City could spend £600m on squad-related costs
The Daily Mail reported on 15 October some executives believe the proposed rules would “destroy” the Premier League and make it harder for promoted sides to compete.
However, Borson insisted no top-flight clubs would currently be impacted if the new system comes into effect.
“You’re probably looking at a cap of £600m because we’re probably up to the bottom club now getting about £120m for this current season,” said Borson.
“So, as you go into next season, which would presumably be the first season of anchoring, the clubs would have a £600m hard cap for player wages and amortisation costs.
“Now, the thing about that is clearly a £600m cap affects almost nobody because there are no clubs that are spending £600m on player wages and amortisation right now.”
The existing PSR rules have caused various issues over the past couple of years, with multiple clubs coming close to breaching, while Everton and Nottingham Forest were handed points deductions last year.
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