What the Premier League’s new finance rules mean for Sunderland’s spending | OneFootball

Sunderland are bracing for the Premier League’s new Squad Cost Ratio this summer, a shift that will shape their window. According to Sunderland Echo, Florent Ghisolfi said they will try to strengthen, an overhaul is unlikely, and there is no pressure to sell.

SCR replaces PSR by capping season to season spend. Clubs may allocate up to 85% of revenue to first-team costs, wages, agent fees and amortisation, or 70% if in Europe. Net transfer profit or loss averaged over three years also counts, for example Tommy Watson’s circa £10 million sale roughly adds £3.3 million per year for three seasons.

Budgets are set after revenues are agreed in summer, with a review each March. Clubs exceeding their limit by under 30% face fines without sporting sanction, those beyond that red zone risk sporting penalties. The overhaul aims to simplify rules and curb legal disputes.

Turnover could be around £170 million this season, driven by at least £100 million extra TV income, though this remains an estimate. Long-term retail deals limit quick gains elsewhere.

Costs are rising. Wages and amortisation have likely jumped, the arrivals of Granit Xhaka and Nordi Mukiele suggest competitive spending, and agent fees hit £10,627,772 across the last two windows, around five times their last Championship season.

Profits from sales such as Jobe Bellingham and Watson will fade in future calculations. New signings lift wages and amortisation, for instance Chemsdine Talbi’s reported £16.5 million fee over five years equates to just over £3 million annually in SCR terms.

Ghisolfi expects a modest, January-style window centred on younger players with resale value, with last summer’s senior additions the exception.

A repeat spree looks impossible without major sales. Sunderland want stability and do not need to sell now, but occasional departures appear likely to preserve headroom. Infrastructure and academy spending sits outside SCR.

Source: Sunderland Echo