At a Premier League Shareholders’ meeting today, clubs voted to introduce a new set of financial rules which will come into effect from the start of the 2026/27 season. Squad Cost Ratio (SCR) and Sustainability and Systematic Resilience (SSR) proposals will be introduced, but there was insufficient support for a proposal on Top to Bottom Anchoring. "SCR will regulate clubs’ on-pitch spending to 85 per cent of their football revenue and net profit/loss on player sales. Clubs will have a multi-year allowance of 30% that they can use to spend in excess of the 85 per cent. Utilising this allowance will incur a levy and once the allowance is exhausted, they will need to comply with 85% or face a sporting sanction. "The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and brings the League’s financial system close to UEFA’s existing SCR rules which operate at a threshold of 70 per cent. The other key features of the League’s new system include transparent in-season monitoring and sanctions, protection against sporting underperformance, an ability to spend ahead of revenues, strengthened ability to invest off the pitch, and a reduction in complexity by focusing on football costs. "The Sustainability and Systemic Resilience rules assess a club’s short, medium and long-term financial health through three tests – Working Capital Test, Liquidity Test and Positive Equity Test. "Since 2023, the Premier League and our clubs have worked collaboratively to develop the financial controls with the objective of maintaining the League’s value, protecting competitive balance and ensuring clubs operate in a financially sustainable way. "The process has included extensive consultation at Shareholder level at clubs, as well as senior finance and legal executives, and club working groups. In addition, independent economic and legal analysis was sought. "As part of the development of the proposed rules, clubs agreed at the Premier League Annual General Meeting in June 2024 to trial SCR and TBA on a non-binding basis. The shadow monitoring of SCR and TBA rules has also continued this season. "This enabled the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent SCR regulations, and to complete the consultation with all relevant stakeholders including the PFA and football agents."
all goes a bit over my head this stuff, does this allow the likes of Newcastle to use their wealth more and compete with Man city, etc?
If it's limited to football related wealth than it sounds like it'll restrict them in the same way they are currently.
