Premier League clubs to be banned from selling assets to themselves
PSR relates to a club’s balance sheet, which includes all revenues over a three-year period, while SCR relates to team costs on a seasonal basis.
Many clubs with healthy finances were happy with the PSR and wanted to maintain the status quo.
Bournemouth, Brentford, Brighton, Crystal Palace, Fulham and Leeds voted against the change.
The new rules will implement a dual system in which clubs in European competitions must comply with UEFA’s SCR limit of 70%; so a club can be sanctioned by UEFA but be compliant in the Premier League.
Considering the increase in revenue for clubs competing in Europe, the high limit is intended to maintain the competitive balance of the Premier League.
Chelsea and Aston Villa were given heavy fines by UEFA for their violations in the 2024-25 season, and the limit in Europe at that time was 80%.
The Premier League has also added some leeway with a 30% multi-year ongoing allowance that allows clubs to spend above the limit. It allows clubs to invest in advance of income and differences or poor sporting performance.
An evaluation is made every March and the allowance is of great importance in determining possible sporting sanctions to be applied in the same season.
The 85% mark is known as the Green Threshold. If you spend over this you will receive a financial penalty, but this will be much less punitive than UEFA.
Red Threshold is 85% plus allowance. Go beyond that; this is a fixed deduction of six points, increasing by one point for every £6.5 million spent above the Red Threshold.
Think of it this way. Each club will start the next season with 85% + 30%, i.e. 115% funding.
Clubs that spend over 85% will face a fine, but will have to lose points over 115%.
However, these percentages will change for 2027-28.
If a club spends 105 per cent on its squad next season, this means it has used 20 per cent of its funds and its maximum spend before potential sporting sanction for 2027-28 is 95 per cent.
If the club spends less than 85%, it can increase the allowance again to a maximum of 30%.
