A seismic financial reform looms over English football: under a proposed “anchoring” rule (effectively a salary cap for squad costs), Manchester City could theoretically be penalised with a 23-point deduction, with Manchester United and Chelsea also reportedly in breach of a proposed £546 million ceiling.
What Is the Anchoring Rule?
The anchoring proposal would tie each club’s permitted football squad costs (wages, transfer amortisation, agent fees) to a multiple of what the bottom club in the league earns in broadcasting and prize-money distributions.
Under current estimates, that multiple is 5×, which would cap squad spending at around £550 million based on 2023-24 figures.
If overspending occurs, the new rules would impose supply-side penalties: a six-point deduction for a first breach, then 1 extra point for each £6.5m above the cap.
Sports Mole
Where City, United & Chelsea Stand
Reporters have estimated that City, United, and Chelsea already exceed that proposed ceiling, placing them immediately at risk under this new regime.
For City in particular, the hypothetical figure of a 23-point deduction is meant to illustrate the severity of sanctions if enforcement is strict and multiple breaches are counted.
Note: that point-deduction figure is not a confirmed ruling — it’s an illustrative projection based on the scale of likely overspend.
Objections, Concerns & Legal Challenges
Several leading clubs oppose anchoring, arguing it would weaken English sides’ financial competitiveness relative to European leagues without such caps.
There is also concern about how anchoring would interact with existing rules like the Squad Cost Ratio (limiting spending to ~85% of revenue) and the Profit & Sustainability rules.
Legal challenges are expected, especially from players’ unions (like the PFA), who may object to strict caps on wage spending.
A vote is expected in November 2025 by Premier League clubs to decide whether to adopt anchoring.
Even if passed, implementation and enforcement would require rulemaking, appeals processes, and potentially years of legal disputes.
Meanwhile, City faces a separate, ongoing case of 115 financial rule charges, which have their own possible sanctions (including point deductions, fines, or other penalties)