The three Premier League clubs breaching ‘Green Threshold’ of new SCR rules | OneFootball

The Premier League clubs have voted in favour of squad cost ratio (SCR) replacing profit and sustainability rules (PSR) as the new system of financial fair play and the latest financial results reveal the three clubs which would be facing sanctions had it already been in place.

The new rules will limit the amount of revenue a club can spend on player and manager wages, transfers and agents’ fees to 85%. Bournemouth, Brentford, Brighton, Crystal Palace, Fulham and Leeds voted against the change, but the minimum of 14 clubs was reached.

Both Chelsea and Aston Villa were handed heavy fines by UEFA for the 2024/2025 campaign for breaching their SCR limit, which was at that stage 80% and is now set at just 70%. That far stricter level means a club competing in Europe next season could be sanctioned by UEFA but be compliant in the Premier League.

Any team above the 85% mark in the Premier League – the Green Threshold –will face a fine, though they’ve provided significant wiggle room to avoid sporting sanctions, with a multi-year rolling allowance of 30% permitting clubs to spend beyond the limit.

The Red Threshold is 85% plus the allowance; any club beyond that threshold will be given a six-point deduction plus another point for every £6.5m over that mark.

It means that any Premier League club can have a squad cost at 115% of their revenue and avoid a points deduction, though those percentages will change for 2027/2028 and the seasons after that if some of the allowance has already been used.

If, for example, a club spends 95% on their squad next season, they’ve used 10% of their allowance and can therefore spend 105% on their squad the season after, using the remaining 20% of their allowance, without sporting sanction. Got it? Great.

Anyway, here are the revenues and squad costs of the 18 current Premier League teams who were also competing in the 2023/2024 season, the latest financial results available from Deloitte, ranked from lowest to highest squad cost/revenue ratio, which shows the three clubs that were above the new Green Threshold.

2) Arsenal

Revenue: £613m Squad costs: £328m Ratio: 53%

3) Manchester United

Revenue: £662m Squad costs: £365m Ratio: 55%

4) Manchester City

Revenue: £719m Squad costs: £413m Ratio: 57%

5) West Ham

Revenue: £271m Squad costs: £161m Ratio: 59%

6) Liverpool

Revenue: £614m Squad costs: £386m Ratio: 63%

7) Brighton

Revenue: £223m Squad costs: £146m Ratio: 66%

8) Brentford

Revenue: £169m Squad costs: £114m Ratio: 68%

9) Newcastle United

Revenue: £320m Squad costs: £219m Ratio: 68%

10) Burnley

Revenue: £134m Squad costs: £93m Ratio: 70%

11) Crystal Palace

Revenue: £189m Squad costs: £134m Ratio: 71%

12) Chelsea

Revenue: £468m Squad costs: £338m Ratio: 72%

13) Wolves

Revenue: £178m Squad costs: £142m Ratio: 80%

14) Everton

Revenue: £187m Squad costs: £157m Ratio: 84%

15) Bournemouth

Revenue: £161m Squad costs: £136m Ratio: 84%

16) Fulham

Revenue: £181m Squad costs: £155m Ratio: 86%

17) Aston Villa