New Financial Rules in the Premier League: Greater Spending Control
Premier League club owners have approved the implementation of new financial measures, including the “squad cost ratio” and sustainability criteria. These regulations will come into effect from next season.
The Premier League has confirmed that any breach of the new regulations, called Squad Cost Ratio (SCR) and Systematic Sustainability and Resilience (SSR), will result in a “sporting sanction”.
The league’s statement details that the SCR will limit clubs’ spending on the field to 85% of their football income and net gains/losses from player sales.
In addition, clubs will have a multi-year margin of 30% to spend above 85%. The use of this margin will imply a fee, and once exhausted, they must comply with the 85% limit or face a sporting sanction.