Premier League clubs have voted in principle to introduce a spending cap from the 2025/26 season.

The rules, should they be approved in a final vote later this year, will replace the current Profit and Sustainability Rules (PSR) which have caused controversy in the Premier League this season.

Everton and Nottingham Forest were handed points deductions this season, which are still subject to appeal with a few weeks of the season to go, for breaching the current rules - causing top-flight clubs to reconsider the financial rules.

In a central London meeting on Monday, Premier League clubs put forward proposed new rules which included a spending cap on player wages, transfer fees and agent fees.

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Sky Sports News chief reporter Kaveh Solhekol runs through the prospective new rules and what they mean for the Premier League clubs...

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What will Premier League clubs be allowed to spend from 2025/26?

The details still need to be worked on but clubs not in Europe would be allowed to spend 85 per cent of their club revenue on squad costs.

That involves wages for their players, amortised transfer fees and also agent fees.

The clubs that are in Europe would be allowed to spend a maximum of 70 per cent on squad costs.

This is what is being discussed by the Premier League clubs at the moment.

Will these new rules definitely be approved?

These rules are in principle, so we haven't had the final vote yet.

What is happening now is Premier League executives, having had the green light from the clubs to do some more work on these proposals, will go away and draw up the legal rulebook, update that and then present it at the Premier League AGM next month, when there will be a final vote.

But it looks all but certain that we will have the 'anchoring' rules and the spending cap from the season after next because when an informal vote was taken on Monday, only three clubs voted against the spending cap: Manchester United, Manchester City and Aston Villa!

The Premier League has become the biggest, most exciting league in the world because clubs have been allowed to spend a lot of money on their squads, wages, agents fees and the infrastructure on their stadiums

Other countries have their own spending rules as well, but for the Premier League to maintain its position as the most watched and most exciting football league in the world, a lot of people would say that Premier League clubs should be allowed to spend what their owners want to spend as long as there isn't the threat of clubs going out of business.

How is this different from PSR?

There's a general acceptance that the current PSR rules are not fit for purpose - that is why clubs want to change the rules.

The issue with these PSR rules is that clubs are allowed to lose a maximum of £105m over three seasons.

We have seen clubs such as Everton and Nottingham Forest lose war with that and that has led to a lot of trouble - the situations with points deductions, appeals and it affects the league table
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