The Premier League has voted to replace its Profit and Sustainability Rules (PSR) with a new Squad Cost Ratio (SCR) system, effective next season.
Clubs must now cap squad costs (wages, transfers, agents’ fees) at 85% of revenue.
Teams competing in UEFA competitions must adhere to a stricter 70% limit.
While spending over 85% incurs a fine, a points deduction will only be applied for the most severe breaches, spending over a 115% Red Threshold (which includes a 30% allowance).
A proposal to cap spending based on the bottom club’s revenue (“anchoring”) was overwhelmingly voted down.
The move is designed to align the Premier League’s financial controls with UEFA standards, promote long-term sustainability, and protect competitive balance.
