PSR out, SCR in: what changes mean for Leeds United next season | OneFootball

The Premier League will scrap PSR and adopt SCR next season after at least 14 clubs approved the framework in November. Leeds United voted against and will only fall under SCR if they avoid relegation, while PSR remains in force this season with SCR having shadowed it without sanctions.

Clubs argued PSR hampered investment and left mid-to-lower sides exposed to revenue shocks, and Everton and Nottingham Forest were docked points. On The Overlap, Kieran Maguire said the new cost-control model chiefly benefits bigger clubs.

SCR switches from rolling losses to annual spending, capped at 85% of revenue for squad costs including wages, head coach deals, agent fees and amortisation. Non-squad departments are excluded.

The green threshold is 85% and the red hard stop 115%. Above green but below red brings fines only, while crossing red means a six-point deduction plus one point for every £6.5m over, with in-season monitoring.

Leeds are understood to be marginally worse off under SCR than PSR in the short term. Maguire also questioned whether the change helps the game, pointing to Champions League windfalls of about £100m that could permit roughly £85m extra on wages.

The associated-party asset sale loophole has been closed, and infrastructure spending, such as any Elland Road expansion, remains outside SCR. Three parallel checks land on seven July, or 31 October for promoted clubs, covering working capital above £12.5m, liquidity and positive equity. Clubs can be required mid-season to evidence compliance, with temporary measures, for example wage limits, available.

Source: Leeds Live