Premier League’s new spending rules could entrench elite advantage | OneFootball

The Premier League returns this evening under a new financial regime set to shape spending and competitive balance. Profit and sustainability rules are out, replaced by squad cost ratio and SSR checks.

According to NY Times, clubs approved SCR in November 2025 by the minimum 14 votes, with six against. A top-to-bottom anchoring cap fell 12 to seven with one abstention, while SSR passed unanimously.

SCR caps squad costs, wages, amortised transfer and agent fees, at 85 per cent of relevant income, the Green Threshold. From 2027-28, levies apply up to 115 per cent and overshoots beyond 115 per cent bring a six-point deduction plus one per £6.5million. A feedback loop can shrink the Red Threshold after repeated overspends.

SSR adds three tests. Clubs must show monthly access to at least £12.5million, pass a liquidity check requiring liquid assets minus liabilities minus £85m to be at or above zero, and meet a positive equity ratio that tapers from 90 per cent to 80 per cent by 2028-29.

Linking spend to revenue could entrench the hierarchy. Even if the Big Six were held to 70 per cent while others spent 85 per cent, those six would still outspend most. Historical modelling suggests more non-elite clubs would breach SCR than PSR, though few would approach 115 per cent.

UEFA’s stricter 70 per cent ratio and its football earnings rule add pressure. For clubs like Brighton, qualifying for Europe might actually reduce spending headroom compared with missing out.

Many club staff view the rules as complex and costly to manage. Levies are redistributed to compliant clubs, potentially reinforcing advantage. Tottenham’s recent shareholder funding and record outlay show how high revenues can translate into greater squad spend under SCR.

Source: NY Times

“Artificial intelligence was used to assist in creating this article based on reporting from the original source quoted.”