Rangers and Celtic have been made aware of UEFA’s openness to implementing a salary limit for clubs participating in European competitions, signaling a potential shift in financial regulations. While Celtic struggled in this season’s Champions League, finishing at the bottom of their group, Rangers faced elimination from the Europa League in the last 16 phase by Benfica. Both clubs aspire to advance further in continental tournaments next season, especially with the introduction of a new Swiss model aimed at revitalizing the competitions.

According to reports from the Times, UEFA is eager to introduce fresh financial measures to the sport. However, plans for a salary cap for clubs engaging in continental tournaments have been put on hold temporarily due to legal setbacks in attempts to regulate agents’ commissions. These agents successfully challenged FIFA and the English FA, arguing that proposed caps violated competition laws. Despite this setback, UEFA has not entirely abandoned the concept of restricting club expenditures on wages, transfers, and agent fees. Sources indicate that the legal battles have caused UEFA to postpone fixed salary caps, placing them on the backburner for now.

Rangers and Celtic hold a financial edge over other Scottish football clubs domestically. However, their financial superiority diminishes on the European stage, particularly in the Champions League, where they often contend with smaller budgets compared to their opponents.

Football authorities were developing a proposal aimed at satisfying EU regulations, which would complement the new squad-cost rule. This rule dictates that clubs participating in UEFA competitions can only allocate a certain percentage of their revenues to wages and transfers, starting at 80% in 2024 and decreasing to 70% in 2025. Additionally, the players’ union has opposed the idea of implementing a salary cap.