Premier League clubs vote in favour of Squad Cost Ratio rules

LONDON :Premier League clubs have agreed a new set of financial regulations to replace the divisive Profit and Sustainability Rules (PSR) with a new Squad Cost Ratio system.

A statement on Friday said Premier League shareholders had voted in favour of the new rules that will come into force for the start of the 2026-27 season.

"Following extensive consultation, clubs agreed to bring in Squad Cost Ratio (SCR) and Sustainability and Systematic Resilience (SSR) proposals," the statement said.

It added that there had been insufficient support for a proposal on Top to Bottom Anchoring (TBA) - a hard cap on clubs' football-related spending set at five times the money earned the previous season by the bottom-placed club in central payments passed on by the Premier League.

Squad Cost Ratio rules will regulate clubs' spending to 85 per cent of their football revenue and net profit/loss on player sales, although clubs will have a multi-year allowance of 30 per cent that they can use to spend in excess of the 85 per cent.

The extra allowance will incur a levy and once it is exhausted clubs will need to comply with 85 per cent or face sanctions.

"The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and brings the League's financial system close to UEFA's existing SCR rules," the statement said.

UEFA's financial regulations cap a club's spending on player wages, transfers and agents' fees at 70 per cent of their revenue.

The Premier League said the new rules will allow for transparent in-season monitoring and sanctions and give clubs the ability to spend ahead of revenues and invest off the pitch.

As well as the SCR system, clubs voted in favour of Sustainability and Systemic Resilience rules which