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Premier League Poised for November Vote on Replacing PSR With 85% Squad-Cost Cap

Chief executive Richard Masters says the plan would align domestic rules with UEFA’s revenue test at a higher ceiling to support investment.

Overview

  • Clubs are expected to vote next month on adopting a squad cost ratio framework to replace profit and sustainability rules, with a decision described as coming up by Richard Masters.
  • The proposal would cap spending on player wages, transfers and agents’ fees at up to 85% of club revenue, compared with UEFA’s 70% limit.
  • Profit and Sustainability Rules, in place since 2015-16, allow losses of up to £105m over three years and have faced criticism alongside high-profile breaches and penalties.
  • The Premier League has been shadow-trialling squad cost ratio controls, while nine English clubs already adhere to UEFA’s version for European competition, with Chelsea and Aston Villa fined in July.
  • A top-to-bottom anchoring option is being considered to tether spending to lower-revenue clubs, and if approved the new rules could start from the beginning of next season.