The Premier League will keep its current PSR regulations but will also trial new cost-limit measures next season.
Squad Cost Rules (SCR) will limit a club’s on-pitch spend to 85% of a club’s revenue while Top to Bottom Anchoring Rules (TBA) will regulate football operational costs.
A Premier League statement said:
“At the Premier League’s Annual General Meeting today, clubs agreed to trial an alternative League-wide financial system next season on a non-binding basis.
“The existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will trial Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) in shadow.
“This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.
“The overall system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League, promote aspiration of clubs, facilitate a workable alignment with other relevant competitions and support clubs’ competitiveness in UEFA club competitions, while providing certainty and clarity for clubs, fans and stakeholders.
“SCR will regulate on-pitch spend to a proportion (85%) of a club’s football revenue and net profit/loss on player sales.
“TBA is a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season.
“It is designed to be a pre-emptive measure to protect the competitive balance of the Premier League. This protection is intended not to have an impact unless significant revenue divergence of clubs occurs”
Olivia Martin is a dedicated sports journalist based in the UK. With a passion for various athletic disciplines, she covers everything from major league championships to local sports events, delivering up-to-the-minute updates and in-depth analysis.
