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Revealed: Liverpool face crushing £368m blow - plan hangs in the balance
Liverpool may have to slash their £368million wage bill if the Premier League introduces their latest plans for a spending cap.
As reported by The Times, Premier League clubs are considering introducing a spending cap that would limit a club’s wage bill to how much television money is paid to the lowest-placed team.
The proposal would restrict wage bills to a figure proportionate to Premier League broadcast money – although the exact ratio is yet to be finalised.
It is one of a number of plans that the Premier League is considering introducing to limit the financial muscle of its biggest clubs.
In 2021/22, Premier League figures showed that 20th-placed Norwich pocketed £100million for finishing at the foot of the table.
Football Insider understands that all three relegated sides in 2022/23 also broke the £100milion mark in terms of broadcast earnings.
While it is still unclear exactly how much the new cap would limit wage bills, it could spell trouble for Liverpool who have seen their wage payments rise significantly in recent seasons.
After Premier League and Champions League success in recent seasons, Liverpool’s wage bill has risen as high as £368million as of 2021/22.
At the time, Liverpool ranked second in wage bill behind only Manchester United, although Man City’s treble success this season is likely to cause a spike in their wage bill.
Should a cap be introduced in the Premier League, Liverpool and other members of the ‘Big Six’ may be forced to lower their wage bill.
An increase in Premier League broadcast payments would proportionately increase the wage cap, but TV payments have plateaued in recent years.
It is understood that the Premier League would introduce such a spending cap alongside Uefa’s new financial sustainability regulations which are set to cap club spending to a percentage of revenue.
In other news, Liverpool on course for game-changing Anfield development