Premier League weighing up changes to PSR rules | OneFootball

The Premier League is edging closer to a landmark decision over whether to scrap its current profit and sustainability rules (PSR) in favour of a new financial model. Chief executive Richard Masters confirmed that a decision is “coming up,” with clubs set to meet in November to determine the future of financial regulation in English football, according to BBC Sport.

Introduced in 2015-16, PSR was designed to curb overspending by capping permissible losses at £105m over a three-year cycle. But the system has faced mounting criticism for limiting investment and forcing clubs into unpopular financial manoeuvres, including the sale of academy players. Everton and Nottingham Forest both suffered points deductions last season after breaching the rules, while Aston Villa co-owner Nassef Sawiris branded the regulations “nonsensical” and suggested they protect the league’s elite.

The proposed alternative is a squad cost ratio (SCR) system, already adopted by UEFA, which limits clubs’ spending on wages and transfers to a percentage of their revenues. Nine Premier League clubs already comply with SCR due to European competition, and both Chelsea and Aston Villa were fined in July for breaches. The Premier League’s proposed version would allow spending up to 85% of revenues, compared to UEFA’s 70%, in order to maintain scope for investment.

Masters emphasised the importance of “closer alignment with European regulation,” while also confirming that a second model, top-to-bottom anchoring (TBA), is being trialled. This would cap spending relative to the income of the league’s lowest earners, aimed at preserving competitive balance.

The debate comes amid record transfer spending this summer and concerns over the financial gulf between Champions League participants and domestic rivals. Any changes, if approved, would be implemented from the start of next season.

The decision could reshape the financial landscape of English football, striking a balance between investor appetite and the need for fairness across the league.

GFN | Finn Entwistle