The Premier League will introduce a spending limit from next season

Premier League teams agreed on Friday to introduce spending limits in England’s top flight from next season.

Clubs’ on-field expenditure will be capped at 85 percent of their football revenues and the net profit or loss on player sales. There will also be an additional 30 percent fee, but if clubs exceed that limit they will face a points deduction.

English football’s top clubs voted to implement the new financial rules of the “Squad Cost Ratio” (SCR) and the “Sustainability and Systemic Resilience” (SSR). They replace the ‘Profitability and Sustainability Rules’ (PSR), which resulted in points deductions for Everton and Nottingham Forest in recent years.

The league said the new regulations are more closely aligned with those of UEFA, European football’s governing body.

It said the new rules “promote the opportunity for all their clubs to strive for greater success, while at the same time protecting the competitive balance and competitive nature of the League.” The selection costs cover the salaries of players and the head coach, as well as agent and transfer costs.

READ ALSO: ‘FIFA Series’ for smaller countries to expand and add women’s edition in 2026

Football-related income refers to the total income from football activities, including income from the league and other competitions.

The league said the revenue generated by the club could include commercial deals and net profits from non-football events hosted at the stadium, such as concerts.

Under PSR, clubs’ profits included all revenues and costs, rather than focusing on on-field expenditure.

“By focusing on team costs, SCR gives clubs more freedom to invest in other aspects of their operations,” the league said.

SCR will also set spending limits each season, rather than assessing financial performance on a three-year rolling basis as was previously the case.

Fines will be imposed for exceeding the 85 percent limit within the additional 30 percent threshold. If a club goes beyond what is called the ‘Red Threshold’, sporting sanctions will be imposed.

The second part of the new financial rules is based on “Sustainability and Systemic Resilience,” which is intended to “support the short, medium and long-term financial sustainability of all clubs.” It will test the working capital, liquidity and positive equity of every Premier League club.

Published on November 21, 2025