Premier League clubs have voted in favour of introducing new financial rules at a meeting today.
It means that from next season, the controversial Profitability & Sustainability rules will no longer be enforced and clubs will instead be governed by a squad-cost ratio rule.
Whereas PSR limited clubs to a £105-million loss over a three-year period, the SCR rules will instead apply on a season-by-season basis and will apply specifically to club's spending on their first team. The new rules will limit clubs to spending 85% of their revenue on squad costs, which the Premier League say will simplify the system and allow 'all clubs to aspire to greater success'. Clubs currently participating in European competitions are already following these rules, as
UEFA imposes a 70% ratio on teams.
What does this mean for Sunderland?
In the short term, not a great deal. They came into this summer in an incredibly strong position with regards to PSR and would have had plenty of headroom next year even accounting for their significant investment in the squad.
Sunderland are thought to have been in support of both SCR and the anchoring system that was ultimately voted down, and so will not be anticipating any issues next year and beyond to SCR.
What it will undoubtedly mean that those Premier League clubs who have in recent years been limited in their spending due to PSR concerns will likely be able to flex their muscles more under this system, and that will pose challenges as Sunderland look to try and establish and grow within the Premier League. It underlines the importance of growing the club's revenues to allow for continued investment in the playing squad, both off the pitch and through key player sales.
https://www.sunderlandecho.com/spor...ier-league-financial-rules-sunderland-5412314
