The idea behind the salary cap in the Premier League is "anchoring" what clubs are permitted to spend on player wages to the prize money and broadcast revenue of the team that finishes bottom of the table, thereby denying the bigger sides the power to spend freely and potentially keeping things fairer and more competitive.
The proposed limit is five times what the last-place makes in the aforementioned revenue streams and The Timesgives the example of Sheffield United, 20th in 2023-24, earning £109.5 million ($144m). Therefore, the salary cap imposed on the following season would have been £550m ($723m). As it goes, Premier League clubs are not yet spending that amount on salaries, with Manchester City becoming the first break the £400m ($526m) in 2202-23 and Liverpool’s most recent set of published accounts for 2023-24 showing a wage bill rise to just shy of £373m ($490m). But the very idea threatens to take control away from the clubs themselves.




