Premier League adopts permanent squad-cost ratio and financial resilience rules for 2026-27

The 2025-26 season served as a pilot for squad-cost ratio (SCR) rules, which are now being permanently instituted for 2026-27, supplanting the previous profit and sustainability regulations (PSR). Clubs competing in Europe must adhere to UEFA's 70% SCR cap, whereas those only in domestic leagues face an 85% ceiling based on adjusted revenue. A multi-year rolling allowance of 30% permits clubs to spend up to 115% in the opening season, with any overspend beyond the allowance resulting in a fixed six-point deduction that escalates by one point per £6.5 million.

In addition, the Premier League introduced sustainability and systemic resilience (SSR) tests covering short-term cash, medium-term liquidity and long-term equity. The reforms aim to curb unlimited owner funding for player acquisitions and prevent clubs from accumulating unsustainable losses. Exempt from the cost calculations are youth academies, women's teams, stadium projects and non-playing staff wages, allowing clubs to invest in facilities such as Tottenham Hotspur's stadium. Adjusted revenue includes matchday, broadcast, commercial, stadium event and player-trading income.