Say Goodbye to PSR, A New Era of Premier League Finances Is Here. Just as you were finally figuring out what “Profit & Sustainability Rules” actually meant, the Premier League has decided to bin it. From the 2026/27 season, the financial rulebook gets a major facelift with two new acronyms taking centre stage:
- SCR: Squad Cost Ratio
- SSR: Sustainability and Systemic Resilience
These are big deals. Not just because they’ll change how clubs spend, but because they’ll do it in real-time, with less hiding, more clarity, and earlier consequences. Let’s break it all down, in plain English because since when does supporting football mean you need a law or finance degree.
What Is Squad Cost Ratio (SCR)?
Basically it’s a cap on how much any club can spend on players and managers in comparison to how much money they make from the football stuff. The Squad Cost Ratio rule means that Premier League clubs can only spend 85% of their football related income alongside profit from player sales on things that directly what happens on the pitch. Such stuff as:
- Player and Manager Wages
- Agent Fees
- Amortisation of Transfer fees (fancy word for spreading a player’s transfer cost over their contract)
- Impairment losses (if a players value falls out the arse, aka Sancho being prime example)
It’s also worth noting that does not include other club staff, pitch and stadium upgrades or anything else off the pitch. Meaning you can still splash the cash on the burger stand and fancy LED boards if you want.
How It Works – Green & Red Zones
Clubs will be assessed in season, around March and post season aka June in the men’s game and October for the women’s. They’ll fall into one of three zones:
Green Zone (Compliant)
Spending is below 85% of revenue then you are all good.
Amber Zone (Watchlist)
Spending is between 85% and 115%, but try not go on the higher end, a club will get fined if they are too high when the final accounts are done.
Red Zone (Breach)
Anything over 115% is an Everton level automatic points deduction on your way. Could be 6 points minimum or more if your miles over. Are we ever going to hear the results of the City trial?
So let’s pop together an example:
If your club have over £300 in football based revenue:
- Green threshold: £255m (85%)
- Red threshold: £345m (115%)
- Spend £350m on the squad? That’s a six-point deduction
Why Scrap PSR?
The old PSR system judged clubs over three years, letting teams overspend one year and claw it back later. It also factored in all revenue and costs, even weird stuff like training ground catering, we see you Jim Ratcliffe.
New SCR system is simpler:
- Focuses purely on football spending
- Enforced in real time, not 3 years later
- More aligned with UEFA’s 70% cap for European competitions
It also helps clubs plan for the chaos of football, like missing out on Europe, unexpected injuries, or finishing 14th instead of 4th, ahem Spurs.
What Is SSR – Sustainability and Systemic Resilience?
Think of SSR as the league’s way of making sure clubs don’t collapse like a house of cards. It’s a 3-pronged test looking at:
Working Capital (Short-Term Cash)
- Clubs must prove they’ve got £12.5m+ in cash reserves for every month of the season.
- Stops clubs from being one late payment away from financial ruin.
Liquidity (2-Year Resilience Test)
- Can your club survive a double disaster? Like relegation and losing a key sponsor?
- Clubs must survive an £85m ‘stress test’ and still come out solvent.
Positive Equity (Long-Term Health)
- From 2026/27: Clubs’ liabilities can’t be more than 90% of adjusted assets.
- That ratio shrinks to 80% by 2028/29.
- Stops clubs from stacking massive debt and praying for a miracle.
Penalties & Sanctions
- Overspending between 85-115% is a fine
- Over 115% easy 6pt or more deduction
- Total failure? The league can block transfers, enforce budgets, or hit you with more sanctions.
Good Behaviour = More Flexibility
There’s a feedback system. Do well? Get rewarded. Flirt with the red zone? Your margin for error shrinks.
- Clubs start with a 30% overspend buffer (up to 115%)
- Overspend this year? That buffer shrinks next year.
- Stay compliant next year? You can earn 10% back.
What About Promoted Clubs?
Promoted clubs get some leeway in adjusting to Prem-level revenue (especially in SSR tests). But SCR rules apply to them same as everyone else — and no, parachute payments don’t get you off the hook.
What About Women’s Teams and Academies?
Revenue from women’s teams and academies counts toward income, but their costs don’t count against the SCR cap. It’s designed to encourage investment in these areas.
When Does This All Kick In?
| Phase | Action |
| 2025/26 (this season) | Shadow monitoring only. No punishments yet. |
| 2026/27 | SCR and SSR come into full effect. |
| 2027/28 and beyond | Fines and point deductions become active enforcement mechanisms. |
| PSR | Gone forever from 2026/27. |
The Statr Verdict
This new system is a win for transparency and a huge shift for clubs that live on the financial edge. It’s also a warning shot to sides like Everton and Forest who’ve felt the sting of PSR. No more long-game accounting trickery now: it’s real-time compliance, real-time punishment.
And if you think loopholes won’t be found, remember: lawyers are always just as creative as playmakers. But at least now, fans know where the lines are, and clubs know when they’re crossing them.
Jon Harrison, December 2025
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