The Premier League has opted to retain its existing profitability and sustainability (PSR) rules for the 2024-25 season, postponing the introduction of a new financial model known as the squad cost ratio (SCR) system. While clubs largely favored SCR, disagreements arose regarding its implementation timeline. This decision has sparked discussions about the future of financial regulations in English football.
The Premier League 's existing profitability and sustainability (PSR) rules are set to remain in place for the 2024-25 season following discussions among member clubs at a shareholders' meeting. There was an expectation that clubs would adopt a new financial model, the squad cost ratio (SCR) system, for the 2025-26 campaign, but its implementation will now be delayed.
While a formal vote on replacing PSR with SCR, currently being trialled alongside top-to-bottom anchoring rules (TBA), did not take place, clubs were consulted on their preferences. According to sources, nearly all clubs expressed satisfaction with SCR, with the exception of one unnamed club favoring the continued use of PSR. However, there was disagreement regarding the timing of SCR's introduction. The debate was described as positive and constructive.PSR has been a subject of considerable controversy. Last season, Premier League clubs Everton and Nottingham Forest both faced point deductions under the current system, which was introduced during the 2015-16 season. PSR allows Premier League clubs to accumulate losses of £105 million over a three-year reporting cycle. The decision to extend the regulations for another season may raise concerns among several clubs and their supporters. Last month, Manchester United communicated with fans to warn them of potential financial constraints. Aston Villa co-owner Nassef Sawiris previously criticized PSR rules, deeming them illogical and protective of larger clubs. Last year, an independent arbitration panel ruled against certain aspects of the league's Associated Party Transaction regulations (APTs) following a lawsuit initiated by the champions. These regulations were designed to prevent clubs from benefiting from commercial agreements with companies affiliated with their owners, deemed to exceed 'fair market value'. Other factors influencing the decision include the potential for legal action by the Professional Footballers' Association against any changes to spending regulations and the uncertain impact of a new independent football regulator. The Football Governance Bill is currently progressing through the House of Lords before being debated by MPs in the House of Commons. The squad cost rules (SCR) and top-to-bottom anchoring rules (TBA) will operate alongside the existing PSR on a shadowing, non-binding basis. SCR, similar to UEFA's existing financial sustainability rules, permits clubs to spend up to 85% of their total revenue on squad-related expenses. Meanwhile, TBA is a model that effectively caps the amount any club can spend as a multiple of the income earned by the league's lowest-performing club
Premier League Financial Regulations Profitability And Sustainability (PSR) Squad Cost Ratio (SCR) Top-To-Bottom Anchoring Rules (TBA) Football Governance
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