
Premier League clubs have agreed on new financial rules due to come into effect at the start of the 2026/27 season. In an agreement made last Friday, the current Profit and Sustainability Rules (PSR) will make way for two new systems, Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR), designed to provide a clearer framework and support the financial future of Premier League clubs.
What is SCR and SSR?
The Squad Cost Ratio (SCR) system aims to limit a club’s spending based on their football-related revenue. Clubs can spend up to 85% of their revenue ‘on-pitch spending’, including player wages, head coach fees and agents’ fees. However, if a club goes beyond this limit, a 30% allowance ensures the club will not face immediate sporting sanctions.
Alongside SCR is the Sustainability and Systemic Resilience (SSR) system, which is designed to monitor a club’s short, medium and long-term financial sustainability. SSR will be especially important going forward because it allows clubs to invest sensibly, thus reducing the possibility of bankruptcy.
Why Introduce New Rules?
The hope for these new measures is that they align better with UEFA’s existing SCR rules, as well as providing improved transparency with fans, clubs and stakeholders.
Previous years have demonstrated a lack of clarity over PSR rules, with clubs such as Everton being sanctioned for financial breaches, and giants Manchester City and Chelsea both coming under fire for not complying with PSR. The introduction of new rules will also hope to remove loopholes which allowed clubs to avoid sanctions by selling assets to sister companies.
Why are Regulations Important?
According to Deloitte’s annual review of Premier League club revenue, the 2023/24 season brought in over AUD 12 billion, but projections for 2025/26 are even higher at roughly AUD 14 billion. While these impressive revenue numbers will support sustained investment and increased competition, they nevertheless carry huge financial and legal risks for the clubs involved.
The new financial rules will not aim to limit spending, but rather to control and monitor it. Consistently high spending can instigate financial penalties and sanctions in the long-term for a club. Therefore, as the Premier League continues to expand across the world and allow clubs to grow year-on-year, the need for clear spending rules is essential.














