Premier League set to scrap Profitability and Sustainability Rules (PSR) in favor of new financial regulation system.
The Premier League first introduced PSR in the 2015/16 season. The Premier League’s Profitability and Sustainability Rules (PSR) limited clubs’ allowable losses to £105 million over a rolling three-year period, including transfers, wages, and operating costs. Clubs exceeding this threshold risked fines, transfer restrictions, or other sanctions to ensure long-term financial stability.
The Premier League is scrapping the Profitability and Sustainability Rules (PSR) because they were seen as too rigid, slow to respond, and insufficiently linked to each club’s actual revenue. By replacing them with the Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR) rules, the league aims to tie spending more directly to a club’s income and long-term financial health. This approach encourages investment in infrastructure and youth development while maintaining competitive balance and reducing the risk of financial collapse.
The Premier League’s new Squad Cost Ratio (SCR) rules limit a club’s spending on player and coach wages, transfer fees (amortised), and agent fees to 85% of its football-related revenue plus net profit from player sales. Clubs exceeding this threshold may face financial penalties, and surpassing a higher “red zone” limit could trigger sporting sanctions like points deductions. The system allows flexibility for investment and is assessed annually, encouraging clubs to spend sustainably while still developing their squad and infrastructure. These rules are set to be in place for the 2026/27 season and onwards.