via echo
At the Premier League shareholders meeting in London on Monday, Tom Werner and Billy Hogan would have been pleased with the outcome.
At the top of the agenda for discussion was whether or not to adopt a salary cap.
The idea of a salary cap in English football has been kicked around for some time, and the one that was agreed in principle was one tethered to the broadcast revenues of the team that finished in last place
It has been widely reported that a multiple of four-and-a-half be adopted, meaning that based on the 2022/23 merit payments
that would be the £94.2m that Southampton achieved directly from TV revenue, with that sum made up of equal share, merit payments and facility fees that were derived from domestic and international rights.
At four-and-a-half times multiplied, that would be £423.9m as a cap.
When John W. Henry and Fenway Sports Group acquired Liverpool back in 2010 they did so under the assumption that Financial Fair Play rules would promote a more sustainable way of running clubs.
Manchester City were against the proposed introduction of a salary cap, joined in their stance by Manchester United and Aston Villa, while Chelsea abstained
Liverpool was among those in favour of such a control.
For context, Manchester City were the biggest spenders on wages in the Premier League last season, with a bill standing at £423m
Chelsea were the second biggest spenders on wages at £404m.
City are already up to what that cap would be now after their competitive success, and with the addition of new players, improved contracts
The changes will have to be ratified at the Premier League’s AGM this summer
While there is also likely to be some pushback and clarity required from the Professional Footballers Association (PFA)
With the agreement in principle over its introduction, the likes of Liverpool, Arsenal, and Tottenham Hotspur will feel they have achieved something of a victory in stopping the gap between themselves and City growing even further.
Liverpool had the third highest wage bill in the Premier League last year at £373m
In the main, though, the introduction of a cap is something that Liverpool and FSG will be a greater beneficiary of than Manchester City.
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