Premier League set new financial rules from next season as clubs vote on transfers, salary caps and more

Premier League clubs have voted down a new set of financial rules – by a narrow majority.

But plans to limit the maximum amount of cash any club can spend on transfers and wages were immediately rejected.

At today’s meeting of 20 participating clubs in central London, Premier League owners won the support of 14 members to introduce a UEFA-style ‘squad cost ratio’ from next season.

It would ban all clubs from spending more than 85 percent of their annual revenue on player expenses.

All clubs participating in UEFA competitions are limited to spending 70 percent of this revenue per season.

However, a move which would have seen Prime introduce an “anchor” system – which limits all clubs’ spending to a maximum of five times the last-placed club’s broadcasting revenue – failed to secure even a slim majority.

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The concept would limit club spending to £550m next season, although only Manchester City and Chelsea will come close to that figure.

But only seven clubs supported the idea, 12 clubs voted against it and one club abstained from voting.

Under Prime Rules, a two-thirds majority is required for any changes to the rules, meaning the move needs at least 14 clubs to support it unless there is a tie-in.

The decision means an end to the current profits and sustainability rules, which have seen Everton and Nottingham Forest deducted points for infringements in recent seasons.

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A Premier spokesman confirmed: “At today’s Premier League shareholders meeting, clubs voted to introduce a new set of financial rules which will come into effect from the start of the 2026/27 season.

“After extensive consultation, the clubs agreed to submit proposals on Team Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR).

“There was insufficient support for the proposal on top-down stability.”

SCR is a “real-time” calculation, in which clubs are allowed to include all stadium revenue – including pop concerts, conferences and other sporting events, which boost Spurs with two NFL games a season as well as major music shows.

Under the Prime proposals that have been voted down, clubs will receive a “30 per cent multi-year payment” if they exceed the 85 per cent threshold.

Spending over 85 percent will be penalized, with a breach of 115 percent resulting in an automatic point deduction.

Any violation will reduce the club’s point loss limit by the same percentage.

Prem added: “The new SCR rules aim to improve the chances of all clubs aspiring to further success and bring the league’s financial system closer to UEFA’s current SCR rules.

“Other key features of the league’s new system include transparent oversight and sanctions during the season, protection against poor sporting performance, the ability to spend revenue early, increased capacity for off-field investment, and reduced complexity by focusing on football spending.

“The sustainability and systemic resilience rules assess a club’s financial health in the short, medium and long term through three tests – the working capital test, the liquidity test and the positive equity test.”

These final regulations were unanimously approved.

Premier leaders have been trialling both SCR and shadow berthing since the start of the 2024-25 season, in an attempt to determine whether the rules should be formally adopted.

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While the SCR was expected to be narrowly passed – the PSR was only narrowly approved in 2013 – it has become clear in recent months that the stabilization process will fail.

Manchester United, Manchester City and Chelsea are strong contenders – with Red Devils chiefs eyeing a revenue boost as they look to replace Old Trafford with an alternative stadium – while Arsenal have also had a change of heart.