The Premier League has signed off on a new set of spending controls that will reshape how clubs build squads and manage their finances from next season.
The move marks a shift away from the Profitability and Sustainability Rules (PSR), which led to points deductions for Everton and Nottingham Forest, and introduces a sharper focus on on-field expenditure.
Under the new “Squad Cost Ratio” (SCR), clubs must cap their spending on player and head coach wages, transfer fees, and agent payments at 85 per cent of their football-related revenue and net profit or loss on player sales.
They will be allowed to stretch this by an additional 30 per cent, but crossing that line triggers fines, and stepping into what the league calls the “Red Threshold” invites points deductions.
The League said the new regulations are closer to UEFA’s framework, with the intention of offering clarity and consistency.
In its statement, it said the rules “promote the opportunity for all of its clubs to aspire to greater success, while protecting the competitive balance and compelling nature of the League.”
Soccer-related revenue covers money earned from football operations, including league and competition payouts. Clubs can also add commercial income and earnings from non-football events held at their stadiums, such as concerts.
By moving on from PSR, where profit calculations involved a wide range of revenue and costs, the League believes SCR offers a more direct financial snapshot.
“By concentrating on squad costs, SCR gives clubs greater freedom to invest in other aspects of their operations,” it said.
One of the biggest shifts is in assessment timelines. Instead of evaluating accounts on a rolling three-year basis, SCR will set spending limits season by season.
The Premier League argues that this approach offers quicker accountability and reduces uncertainty around sanctions.
The overhaul also includes a parallel set of checks called “Sustainability and Systemic Resilience” (SSR). This track focuses on working capital, liquidity and positive equity.
The League says it is meant to support “short, medium and long-term financial sustainability of all clubs.”