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Premier League Clubs to Adopt New Squad Cost Ratio Financial Rules

The new financial framework will replace the existing Profitability and Sustainability Rules, aiming to limit club spending to 85% of their revenue.

  • Premier League clubs have voted to introduce squad cost ratio rules, set to replace the current Profitability and Sustainability Rules (PSR).
  • Clubs will be restricted to spending no more than 85% of their revenue on transfers, wages, and agent fees under the new rules.
  • The transition to the new financial system will include a period where both the old PSR and new rules will coexist.
  • Points deductions for breaches of the existing PSR rules will continue, affecting clubs like Everton and Nottingham Forest.
  • The new rules are part of broader efforts to ensure financial sustainability in football, amidst discussions on other regulatory measures like a luxury tax and salary caps.
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