Premier League: a new financial system with an 85% Squad Cost Ratio from 2026-27

Premier League clubs have voted in favour of the introduction of new financial regulations to come into force from the 2026-27 season, announced the English league following its shareholders' meeting on 21/11/2025.

"Following extensive consultation, clubs agreed to bring in Squad Cost Ratio (SCR) and Sustainability and Systematic Resilience (SSR) proposals," said the Premier League.

• SCR regulations received 14 votes in favour, the minimum required. They stipulate that clubs may not spend more than an amount equivalent to 85% of their revenue (excluding asset disposals) on building their squad. A "multi-year allowance" of 30% over and above this 85% will be authorised but subject to taxation. Once this allowance has been used, clubs will have to comply with the 85% quota, at the risk of being penalised in sporting terms.
• SSR regulations, which were adopted unanimously, will assess a club's short-, medium- and long-term financial health via three tests: a working capital test, liquidity test and positive equity test (see below).

However, the Top to Bottom Anchoring Rules (TBA), which…