Premier League clubs have approved major changes to financial regulations that will stop teams from selling assets—such as hotels or women’s teams—to themselves in order to meet spending limits. The new system, known as the Squad Cost Ratio (SCR), replaces the Profit and Sustainability Rules starting next season.
“The new SCR rules are designed to protect competitive balance while aligning with Uefa standards,” the league said.
How the New Rules Work
Under SCR, clubs must keep squad spending—wages, transfer fees, and agent payments—within 85% of their revenue from 2026-27. Clubs in European competitions will follow Uefa’s stricter 70% limit.
The loophole allowing clubs to sell capital assets internally, used by teams like Chelsea and Everton last year, is now officially closed.
A multi-year 30% allowance will offer some flexibility, but going beyond 115% of revenue results in automatic points deductions.
One insider described it as: “A system that rewards responsible planning and stops creative accounting.”
Impact on Clubs
Wealthier clubs are expected to adapt easily, but teams with smaller stadiums or lower commercial income—like Bournemouth or Fulham—opposed the change because it ties spending to revenue.
Anchoring, a proposal to cap spending based on the income of the league’s bottom club, was rejected after only seven votes in favour.
Sustainability rules, which require long-term financial planning, passed unanimously since clubs were already preparing for regulations from the upcoming Independent Football Regulator.
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