LONDON, United Kingdom — Premier League clubs have voted narrowly in favor of a significant restructuring of financial regulations, paving the way for a new spending framework that will replace the controversial Profit and Sustainability Rules (PSR) beginning in the 2026-27 season.
In a decisive meeting held in London on Friday, representatives from all 20 top-flight clubs cast ballots on three separate financial control proposals.
The Squad Cost Ratio (SCR) measure secured exactly 14 votes in favor and six against, meeting the precise two-thirds majority threshold required to enact a rule change.
How the new system works
Under the incoming regulations, clubs will face a strict cap on spending relative to their income. Specifically, overall squad costs, defined as player and manager wages, transfer amortisation, and agents’ fees, will be limited to 85% of a club’s revenue.
However, teams qualifying for European competitions will face tighter restrictions to align with continental standards, requiring them to adhere to UEFA’s lower limit of 70% of revenue.
The new framework also targets creative accounting practices. It will close existing loopholes that previously allowed clubs to sell non-football capital assets, such as stadiums, hotels, or affiliated women’s teams, to related companies in order to artificially balance their books.
Anchoring rejected, sustainability approved
While the SCR passed, other proposals met mixed results. Regulations concerning long-term financial sustainability received unanimous support from shareholders.
Conversely, the controversial “anchoring” proposal, which sought to cap the spending of top clubs as a multiple of the revenue earned by the league’s bottom club, was rejected. That measure failed with 12 votes against, seven in favor, and one abstention.
Official confirmation and levies
The league released a formal statement outlining the transition away from the current PSR system.
“At a Premier League shareholders’ meeting today, clubs voted to introduce a new set of financial rules which will come into effect from the start of the 2026-27 season,” the Premier League confirmed.
The statement detailed the mechanics of the new ratio and the penalties for non-compliance, including a “luxury tax” style levy and sporting sanctions.
“SCR will regulate clubs’ on-pitch spending to 85 percent of their football revenue and net profit/loss on player sales. Clubs will have a multi-year allowance of 30 percent that they can use to spend in excess of the 85 percent. Utilizing this allowance will incur a levy and once the allowance is exhausted, they will need to comply with 85 percent or face a sporting sanction.”
The league emphasized that the alignment with European standards is designed to foster competition while ensuring financial health.
“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, which operate at a threshold of 70 percent,” the statement added.
