The Premier League wage cap: a well kept secret

Wednesday, 11 June 2014 Author: Daniel Geey

The Premier League’s (PL) latest handbook contains a very important cost control provision explained below. Many are unaware that the PL has implemented a soft wage cap in the PL that its member clubs are required to adhere to.

Short Term Cost Control

Rule E.18 states that

“If in any of Contract Years 2013/14, 2014/15 and 2015/16 a Club’s aggregated Player Services Costs and Image Contract Payments:

E.18.1. exceed £52m, £56m, or £60m respectively; and

E.18.2. have increased by more than £4m when compared with the previous Contract Year or by more than £4m, £8m or £12m respectively when compared with Season 2012/13;

then the Club must satisfy the Board that such excess increase as is referred to in E.18.2 arises as a result of contractual commitments entered into on or before 31 January 2013, and/or that it has been funded only by Club Own Revenue Uplift and/or profit from player trading as disclosed in the Club’s Annual Accounts for that Contract Year.”

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Tags: Champions League | Football | Premier League | Salary Cap | UEFA | United Kingdom (UK)

Written by

Daniel Geey

Daniel is a Partner in the Sport Group.

Daniel’s practice focuses on helping clients in the sports sector, including rights holders, leagues, governing bodies, clubs, agencies, athletes, sports technology companies, broadcasters and financial institutions.