Premier League clubs have reportedly voted in favour of introducing a development plan for a spending cap from the start of the 2025-26 campaign.
The plans are designed to prevent the gap between the Premier League's financial powerhouses and lower-half sides from widening, and 16 teams agreed to the spending cap plans.
However, three European-chasing teams in Manchester United, Manchester City and Aston Villa are believed to have voted against the idea, according to a report from BBC Sport.
The aforementioned clubs supposedly believed that the development of a spending cap could negatively impact the competitiveness of the Premier League, as well as punishing clubs with larger revenues and putting them at a disadvantage against European sides not governed by similar rules.
Meanwhile, Chelsea - who have splashed the cash at a relentless rate under the Todd Boehly regime - abstained from the vote, but all other top-tier teams gave the proposals the thumbs-up.
The shareholders of the Premier League are said to have discussed the spending cap plans during Monday's meeting in London, and an official vote will be taken during the Annual General Meeting (AGM) in June.
How would the proposed spending cap work?
© Reuters
While Monday's vote means that the Premier League can now go ahead and develop a spending cap model, it does not necessarily mean that one will definitely be implemented, as another vote will be required on that matter.
The start of the 2025-26 season will see squad cost rules come into effect, and under the spending cap regulations, a club's business will be governed by the commercial and broadcast earnings of the side finishing bottom of the league.
The Athletic claims that the original idea was to have a multiple of 4.5, but a plethora of clubs pushed back against those plans, so the Premier League are expected to allow teams to spend up to a multiple of five.
As a result, should the 20th-placed team hypothetically earn £100m through commercial and broadcast revenues, clubs' squad costs would be capped at £500m - a figure which Manchester City (£501m) and Chelsea (£539m) both surpassed in 2022-23.
As well as amortised transfer fees, the squad costs would also include payments to agents and a club's wage bill, although the Professional Footballers' Association has said that they will push back against a severe limit on player salaries.
"We will obviously wait to see further details of these specific proposals, but we have always been clear that we would oppose any measure that would place a 'hard' cap on player wages," a statement read.
"There is an established process in place to ensure that proposals like this, which would directly impact our members, must be properly consulted on."
This season, Everton and Nottingham Forest have both been hit with points deductions for breaching the Premier League's current Profit and Sustainability Rules, which permit teams to lose no more than £105m over three seasons.
Chelsea are also thought to be at risk of similar penalties, having recorded a pre-tax loss of £90.1m for the 2022-23 campaign alone, prior to which that figure stood at a whopping £121.4m for 2021-22.
