According to The Times, UEFA are now considering capping clubs’ transfer fees and wage spending in an effort to curb the dominance of the Premier League.
Premier League clubs already have a distinct financial advantage over their European counterparts, owing to their increased commercial and broadcast income as a result of the popularity of the competition.
That chasm only grew post-COVID, with many clubs across the continent struggling to offset their losses while English clubs kept spending with impunity.
In order to prevent remedy this, UEFA had already introduced regulations that cap wages and transfers to a percentage of revenue.
In 2023, the introduction of the Financial Sustainability Regulations [FSR] would start as 90 per cent of all revenue and would dwindle to 70 per cent in 2025 (Football.London).
According to The Times, European football’s governing body is now expected to introduce new radical changes, whereby the total spending on transfer fees and wages will be capped at a fixed amount.
It is explained this new regulation will override the percentage of revenue, meaning that clubs would have to adhere to the total cap even if it is well below 70 per cent of their revenue.
Spurs Web Opinion
A move like this was undoubtedly needed if UEFA wanted to stop the talent drain towards England and to fix the level of price inflation in the transfer market.
The move of capping spending at a percentage of revenue would benefit clubs like Tottenham, who are run sustainably but this move of capping overall spending at a fixed amount rather than a percentage will negatively impact the ability of Premier League clubs to invest in players.
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