Premier League Clubs Approves Major Financial Rule Changes for 2026-27

Premier League clubs have voted through significant changes to the competition’s financial rulebook, approving new spending controls that will come into force from the 2026-27 season.

At a shareholders’ meeting in London on Friday, clubs backed the introduction of a squad cost ratio (SCR) and sustainability and system resilience (SSR) framework. However, the league confirmed there was “insufficient support” to implement the proposed top-to-bottom anchoring system, which required at least 14 votes to pass.

The SCR will replace the long-standing profitability and sustainability rules (PSR), marking the final season under the current system that restricts club losses to £105m across three years. Under the new SCR model, clubs will be limited to spending no more than 85 per cent of their total income on player wages, transfer fees, head coach salaries and agent costs.

The concept originates from UEFA rules – which limit European clubs to a 70 per cent spending threshold – and has already been trialled domestically in shadow form across the past two seasons. Unlike UEFA’s January-to-December reporting period, the Premier League’s rules will operate on a season-by-season basis.

The SSR introduces three financial tests designed to ensure clubs are equipped to deal with expected expenses and revenue fluctuations, while also assessing long-term financial health through balance-sheet evaluations.

The rejected top-to-bottom anchoring system would have imposed a universal spending cap based on the revenue of the previous season’s bottom-placed club. Last year, for example, Southampton received £109.2m, meaning all clubs would have faced a maximum spend of £546m. Forecasts suggested this cap would rise to around £600m for the current season due to increasing broadcast revenues.

Concerns remained that anchoring could trigger legal challenges from players, effectively serving as a salary cap across the league.

The approved SCR and SSR frameworks will reshape the financial landscape of English football’s top tier, aiming to increase sustainability while maintaining competitive balance.