PREM SET FOR CAP ON SPEND

meeting of the 20 top-flight clubs in London.

Prem bosses have been keen to stress that nothing has been agreed and that the clubs only voted to explore the principle further at the Annual General Meeting in June.

The new system is known as “anchoring”.

The thinking behind it is aimed at ensuring the top-flight remains competitive.

Clubs would not be stopped from paying for a star player – but the original proposals are aimed at making sure that overall the clubs could not splash out more than four-and-a-half times what the bottom club earns from TV rights.

That means that, based on last season, clubs could only spend £466million on squad costs – which is four-and-a-half times what Southampton earned from TV rights – which includes wages, amortised transfer fees and agent costs.

Some big clubs fear that they will be at a disadvantage to European rivals while other teams insist it is necessary so the Premier League remains competitive.

Some owners fear that State-owned clubs have got a huge financial advantage.

It is also accepted that the PSR system needs a major overhaul, particularly after the controversies involving points deductions for Nottingham Forest and Everton this season.

The players’ union, the Professional Footballers’ Association, have voiced concerns about what it could mean for their members in the long-term.

The PFA said: “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.

“There is an established process in place to ensure that proposals like this, which would directly impact our members, have to be properly consulted on.”

The final details will be thrashed out at the AGM in June, but the belief is that a figure of five times TV revenue could lead to an agreement.