The Premier League is scrapping its existing Profitability and Sustainability Rules (PSR) this summer, with a new set of financial guidelines due to be enforced from next season. PSR tracked three-year losses and handed points deductions to the likes of Nottingham Forest and Everton for breaching rules . The top-flight has now opted to devise a new framework designed to align with UEFA’s rules that will introduce the regulation of Squad Cost Ratio (SCR). The rules will limit clubs’ on-pitch spending – including player wages,
transfers, and agent fees – to a maximum of 85% of their total football revenue (or 70% for clubs competing in UEFA competitions). SCR covers wages of players and the head coach, agent fees and transfer fee amortisation. The new rules reward financial sustainability as clubs who operate under budget and opt not to spend the maximum 85% allowance for two consecutive seasons are allowed to roll over up to 10% of their unused budget into the following year. However, clubs who breach the maximum
115% threshold of SCR – which focuses strictly on squad costs – will be slapped with an automatic fine and a non-negotiable six-point deduction. SCR does deliver financial freedoms to clubs off the pitch who are able to invest in stadium upgrades, academies and infrastructure without it counting against them in regards to the threshold. JOIN US ON FACEBOOK! Latest news, analysis and much more on Mirror Football’s Facebook page While SCR will officially be brought in next season, it was introduced on a shadow
basis throughout the last two seasons. The Premier League opted to do this in order to give financial executives time to adjust to the new regulations while the Profitability and Sustainability Rules (PSR) remained legally in place. Upon the beginning of the 2026/27 season, clubs will have to submit their estimated football revenue and squad costs which they will base on past campaigns. The Premier League will then run its first SCR Compliance Test during the season on March 1, 2027. The figures presented will
help set every club’s Green Threshold (85% revenue) and Red Threshold (the maximum spending limit up to 30% above the Green Threshold). An Accounts Confirmation Test will follow at the end of the season in June next year in order to confirm any fines or points deductions. Should the squad cost be level to or less than the Green Threshold, a club will be deemed compliant with no further action taken. However, should the squad cost be above the Red Threshold, that club will be
subject to a sanction. Alongside the desire to align with UEFA’s financial rules, the introduction of the SCR system is said to be brought in in order to provide greater success of Premier League clubs while protecting the division’s competitive balance.
Premier League, SCR, Squad Cost Ratio, UEFA financial rules, Profitability and Sustainability Rules, PSR, six-point deduction, Nottingham Forest, Everton, financial sustainability
So basically they’re counting money again.
Six points sounds like a big deal but I’m confused how this helps on the field. Like if you’re already struggling, fining them and docking points just makes it worse… right? Also what even is SCR, it sounds like a new detergent.
Wait, “shadow basis” for two seasons? That means it already got used on people and we just didn’t notice? If they breach 115% they get fined and a non-negotiable six-point deduction… but does that include loans or just wages? I swear soccer rules are always half explained.
This is why Everton and Nottingham Forest always get punished, it’s literally the same old PSR thing just renamed. They say clubs can spend up to 85% of revenue on players but then 70% if you’re in UEFA… so which one are we doing? And “roll over up to 10%” like that won’t tempt teams to gamble anyway. Stadium upgrades not counting is convenient too, like that’s not still spending.