EPL

Premier League clubs have voted to implement sweeping financial regulations starting with the 2026/27 season, introducing the Squad Cost Ratio (SCR) and Sustainability and Systematic Resilience (SSR) frameworks to curb spending and bolster long-term stability, while rejecting the Top to Bottom Anchoring (TBA) proposal due to insufficient backing.

The SCR will cap on-pitch spending at 85% of football revenue plus net profit/loss from player sales, with a multi-year 30% allowance for exceeding the limit—any use incurring a levy. Once exhausted, clubs must adhere to 85% or face sporting sanctions. Designed to promote opportunity across the league, it aligns closely with UEFA’s 70% threshold while featuring transparent in-season monitoring, protections against underperformance, pre-revenue spending flexibility, off-pitch investment incentives, and simplified focus on football costs.

Complementing this, the SSR will evaluate clubs’ short-, medium-, and long-term financial health via three tests: Working Capital, Liquidity, and Positive Equity. These measures, developed collaboratively since 2023 with input from shareholders, executives, working groups, independent economists, lawyers, the PFA, and agents, aim to safeguard the league’s value, protect competitive balance, and ensure sustainable operations.

The process included a non-binding trial agreed at the June 2024 AGM and ongoing shadow monitoring this season, allowing thorough assessment of UEFA’s equivalent rules. The TBA—aimed at anchoring spending to the bottom of the table—lacked consensus, but the approved changes mark a milestone in financial governance.