Premier League clubs divided over spending limit proposals

"The 'top-to-bottom anchoring' model - or TBA - would restrict the amount any club can spend on player wages, agents and transfer fees to five times the income earned from broadcasting and prize money by the bottom club in the English top flight. The approach means that a cap would be imposed on clubs' spending, regardless of their own income."

"TBA is currently being trialled by the Premier League, alongside a 'squad cost ratio' (SCR) system of financial control that allows clubs to spend up to a percentage of their total revenues on squad-related costs. On 21 November the Premier League will meet and vote on whether to adopt either, or both, models, and replace the current Profit and Sustainability Rules (PSR) that allow losses of 105m over a three-year reporting cycle."

"In order to encourage sustainability, Uefa permits participants in its competitions to spend up to 70% of their revenues on their squads, while the Premier League has said it would allow a more generous 85%. However, BBC Sport has been told that a number of Premier League clubs would only vote for SCR to be implemented if it was accompanied by 'anchoring', so that those with the largest revenues did not get too far ahead of the rest, and competitive balance was protected."

The top-to-bottom anchoring (TBA) model would cap spending on wages, agents and transfer fees at five times the bottom Premier League club's broadcasting and prize income. The squad cost ratio (SCR) would limit squad-related spending to a percentage of each club's revenues; the Premier League has proposed 85% versus UEFA's 70% allowance. A league vote on 21 November will decide whether to adopt TBA, SCR, or both, replacing Profit and Sustainability Rules that permit £105m losses over three years. Several clubs demand anchoring alongside SCR to prevent richest clubs pulling too far ahead amid rising European and Club World Cup revenues. Sixteen clubs previously voted to analyse TBA; Manchester United, Manchester City and Aston Villa opposed.

Read at www.bbc.com