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PFA chief warns Premier League of legal battle over proposed financial rules
The Professional Footballers' Association (PFA) has warned the Premier League of potential legal action if it presses ahead with new financial regulations that cap club spending, regardless of their earnings. PFA chief executive Maheta Molango cautioned that the proposed "top-to-bottom anchoring" (TBA) system would face significant opposition, both from the union and member clubs.
Proposed financial rules under scrutiny
Premier League clubs are set to vote on November 21 on TBA, a rule that would limit a club’s spending to five times the smallest central broadcasting and prize money payout in the league. Critics, including the PFA, argue that this measure effectively introduces a salary cap, something the union has strongly opposed in the past.
High-profile clubs such as Manchester City, Manchester United, and Aston Villa previously rejected the idea during discussions in April last year. The PFA has enlisted prominent sports lawyer Nick De Marco KC, who successfully challenged the English Football League's (EFL) salary cap plans in 2020, to prepare for potential legal disputes.
Molango expressed his concerns on BBC Radio Four’s Today programme, stating, “We have a tendency in football to think that we are above the law. The reality is that you cannot artificially cap someone's ability to make a living as this would just not withstand any legal challenge. We’ve made it clear to the Premier League that [anchoring] is something we will oppose.”
Legal and financial implications
Despite the PFA’s opposition, the Premier League defends the proposals, saying they aim to ensure financial sustainability. A spokesperson for the league stated, “We disagree with the PFA’s views regarding the proposed financial rules and the extensive consultation process we have been conducting with our clubs and other stakeholders. The PFA has had numerous opportunities since March 2024 to provide feedback on, and shape, the proposals and the principles that underpin them.”
However, sources have revealed that the PFA plans to meet with captains of all 20 Premier League clubs next week to discuss the implications of anchoring. Meanwhile, there is speculation among club executives regarding the potential legal costs of defending the rules if challenged in court. According to Molango, “The only ones who end up winning are the lawyers. We want to talk about football, not legal bills.”
Alternative financial measures on the table
Alongside TBA, clubs will vote on squad-cost ratio (SCR) rules, which would cap spending on squad-related cost such as wages and transfer fees at 85% of revenue. SCR mirrors UEFA’s current system, which limits clubs participating in its competitions to spending 70% of revenue on squad expenses.
While some clubs favor SCR as a more measured approach, others worry about the implications of anchoring extending to the EFL’s Sky Bet Championship. The uncertainty over how clubs will vote on November 21 reflects the deep divisions within the league, with some executives arguing for sticking with the existing profitability and sustainability rules (PSR).
The outcome of the vote could significantly impact financial regulations in English football, with the potential for legal battles looming if the proposals are approved.
