The Premier League is set to amend its new spending rules before they are introduced next season, giving clubs more flexibility in the transfer market. Under the squad cost ratio (SCR) rules approved last November, clubs are restricted to spending 85% of their revenue on player costs, with a levy payable to the league for distribution among other clubs in the event of a breach. A six-point deduction would be imposed if a club’s spending reaches 115% of revenue.
Under the terms of an amendment introduced at a shareholders’ meeting on Thursday, clubs that do not spend their 85% allowance for two seasons will be permitted to roll over up to 10% into the third year. This enables them to breach the cap without incurring a fine. For example, a club that spent 80% of revenue on transfers, wages and agent fees for two successive years would be free to spend 95% in the third year.
Brighton proposed the amendment at a shareholders’ meeting before Christmas, and after setting up a working group, the Premier League briefed clubs on its conclusions on Thursday. None of the 20 clubs spoke against the proposal, and it is expected to be formally approved via a postal vote before the end of the season. The clubs want the SCR rules agreed long before the summer transfer window opens.
Brighton brought the amendment over concerns that SCR would penalise well-run clubs who never came close to breaching profitability and sustainability rules, by removing their ability to bank PSR headroom for later use. The introduction of what the Premier League describes as a levy offset mechanism is regarded as a small concession and is expected to be approved unanimously. The levy offset has been capped at 10% to avoid giving an advantage to clubs competing in Europe, where the SCR threshold is set at 70% of revenue.
Separately, clubs voted to extend the £30 price cap on tickets for away fans until the end of the 2027-28 season, by which point it will have been in place for 12 years. “Away fans help create the incredible atmosphere Premier League matches are renowned for,” the league said. “Since the cap’s implementation in 2016, it has contributed to attendance at away games increasing from 82% to 91%.”
