The Premier League officially announced that Premier League clubs decided to introduce the Team Cost Ratio (SCR) and Sustainability and System Resilience (SSR) rules after voting. This is a new set of financial rules that will take effect in the 202...
The Premier League officially announced that Premier League clubs decided to introduce the Team Cost Ratio (SCR) and Sustainability and System Resilience (SSR) rules after voting. This is a new set of financial rules that will take effect in the 2026/27 season, replacing the previous Profitability and Sustainability Financial Rules (PSR). Additionally, rules on whether to establish a similar salary cap were ultimately not voted on.
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[Official announcement]
Premier League clubs voted to adopt a set of new financial rules that will take effect in the 2026/27 season - team cost ratio and sustainability and systemic resilience rules
At the Premier League shareholders meeting held today, each club voted to adopt a set of new financial rules that will take effect in the 2026/27 season. After extensive consultations, clubs unanimously agreed to introduce the Team Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR) schemes, while proposals for upper and lower anchoring mechanisms did not receive sufficient support.
The team cost ratio rule will control the club's on-field expenses to within 85% of the net profit or loss from football revenue and player sales. Clubs can receive 30% of the multi-year quota to exceed the 85% limit. The use of this quota will incur levies, and after the quota is exhausted, the 85% standard must be strictly adhered to, otherwise you will face sports penalties.
The new SCR rules are designed to drive all clubs to pursue greater success and align the league's financial system with UEFA's current 70% threshold SCR rules. Other key features of the new system include: transparent mid-season monitoring and penalties, protection against poor performance, the ability to invest ahead of revenue, enhanced off-field investment capabilities, and reduced complexity through a focus on football costs.
The sustainability and systemic resilience rules evaluate the short, medium and long-term financial health of the club through three indicators: working capital test, liquidity test and forward equity test.
Starting in 2023, the Premier League will work with each club to formulate financial management and control plans to maintain the value of the league, ensure competitive balance, and ensure the sustainable operation of clubs. The formulation process included in-depth consultations at the club shareholder level, soliciting opinions from financial and legal executives and special working groups, and obtaining independent economic and legal analysis reports.
In the rule-making process, the club agreed at the Premier League Annual Shareholders Meeting in June 2024 to implement the SCR and upper and lower anchoring mechanisms on a non-binding trial basis. This season has also continued to carry out shadow monitoring of SCR and upper and lower anchoring rules, allowing the league and clubs to comprehensively evaluate the operation of the system, including the implementation of UEFA's corresponding SCR regulations, and complete consultations with all relevant parties such as the Professional Players Union and football agents.
The current profitability and sustainability rules will continue to be implemented until the end of the 2025/26 season. The complete rules of the new financial system will be published in Chapter E of the "Premier League Handbook" in due course.
