Premier League approves new financial fair play system for 2026/27 | OneFootball

This Friday, English clubs met and approved a new financial fair play system for the 2026/2027 English Championship season. Called the Squad Cost Ratio (SCR), the model received 14 favorable votes, the minimum required for the change, and six against.

As a result, the financial rules in place since 2013 will be replaced. Starting next season, clubs will have a limit of 85% of their revenue for total squad costs. The costs considered include player and coach salaries, transfer fees, and agent fees. Spending above the limit will result in a financial penalty.

The system also provides flexibility with a multi-year and movable allowance of 30%. In practice, this extra percentage allows clubs to invest beyond the 85% by anticipating revenues or in scenarios of affected sports performance. If a team exceeds the 85% limit plus the allowance, the penalty will be a points deduction in the standings.

If a club spends 105% of its budget on the squad, this indicates that it used 20% of the allowance, reducing the cap to 95% in the following season. Those who remain below 85% maintain the full 30% allowance.

Other proposed rules

New sustainability rules were also unanimously approved, establishing long-term spending plans for the clubs.

On the other hand, the Absolute Spending Cap (ASC), which aimed to limit maximum spending based on the revenue of the lowest-earning team, was not approved, receiving 12 votes against.

According to a statement published by the English Championship, the new set of rules is closer to the UEFA model, which already subjects teams to a 70% cap, and seeks to promote better financial conditions for the clubs.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.