Premier League clubs have agreed in principle to a spending cap related to the lowest-earning club's revenue to combat financial disparity.

The spending cap, potentially effective from the 2025-26 season, would limit clubs to using 85% of their revenue on transfers, salaries, and agents' fees.

Key clubs like Manchester City and Manchester United oppose the cap, fearing it may diminish the Premier League's global financial dominance.

The Professional Footballers' Association has concerns about the cap's ramifications on player earnings and the necessity for thorough dialogue.

Proponents of the cap believe it will preserve competitive fairness in the face of growing Champions League revenues and the financial clout of state-backed teams.

The Premier League will also adopt UEFA's new financial fair play rules starting with the 2025/26 season.