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Squad cost ratio rules to help EPL clubs aim higher

The Straits Times

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November 23, 2025

English Premier League clubs have agreed on a new set of financial regulations to replace the divisive profit and sustainability rules (PSR) with a new squad cost ratio (SCR) system.

A statement on Nov 21 said Premier League shareholders had voted in favour of the new rules that will come into force for the start of the 2026-27 season.

“Following extensive consultation, clubs agreed to bring in squad cost ratio and sustainability and systematic resilience (SSR) proposals,” the statement said.

It added that there had been insufficient support for a proposal on top to bottom anchoring (TBA) - a hard cap on clubs’ football-related spending set at five times the money earned the previous season by the bottom-placed club in central payments passed on by the Premier League.

SCR rules will regulate clubs’ spending to 85 per cent of their football revenue and net profit/ loss on player sales, although clubs will have a multiyear allowance of 30 per cent that they can use to spend in excess of the 85 per cent.

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