With Premier League spending on wages costing a reported £1.8bn, Premiership teams could soon see a salary cap being enforced with Premier League chief executive Richard Scudermore presenting the idea to top-flight clubs in a recent meeting.
Having seen Manchester City virtually buy the Premier League title last season, it seems like the sensible idea for the Premier League to introduce a salary cap which will help to level the playing field. With only 8 top-flight teams out of 20 making a profit in 2010 – 2011, introducing a salary cap will ensure situations such as the one Portsmouth find themselves in do not happen again.
Introducing a salary cap would make the Premier League a much more exciting league and would also reign in the spending of clubs such as Manchester City and Chelsea. Although football is a sport, it is also a business, and to run a business to need to be running on profits to avoid liquidation.
Despite these views, 14 out of 20 Premier League teams must agree to the new rules and with teams such Manchester City, Fulham, Everton, West Brom, Newcastle and Tottenham unlikely to be in favour of the new rules, it remains to be seen whether the new salary cap which is similar to UEFA’s financial fair play will actually be passed and enforced.
Nonetheless, introducing a salary cap can only be beneficial to the Premier League on the business side as well as the entertainment side on the field of play, and if rejected football clubs from all English leagues could possibly suffer from the constant spending of top-flight clubs.