Premier League clubs have voted to introduce a new set of financial rules from the 2026/27 season, replacing the current Profitability and Sustainability Rules (PSR). The new system, named Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR), was approved following consultation with clubs and stakeholders.
The SCR will limit clubs' spending on transfers, wages, and agent fees to 85 per cent of football-related revenue and net profit or loss from player sales. This mirrors Uefa's existing rules, which impose a stricter 70 per cent limit. Clubs competing in European competitions must continue to comply with Uefa's threshold. Breaches of the SCR's 'Red Threshold' will result in sporting sanctions, including a fixed six-point deduction, increasing by one point for every £6.5 million overspent.
The SSR focuses on long-term financial sustainability, requiring clubs to demonstrate sound business plans and avoid unreasonably high debt levels. Unlike the SCR, breaches of SSR will primarily lead to monitoring and assistance rather than sporting sanctions, though clubs may face registration blocks or spending limits if non-compliant.
A separate proposal for 'top-to-bottom anchoring', which would have introduced a hard spending cap linked to the income of the league's lowest-earning club, failed to gain the required 14 votes. The Professional Footballers' Association opposed the measure, arguing it would effectively act as a salary cap.
