Archive · 21 Nov 2025
Premier League Implements New Spending Caps for Next Season
The Premier League has new rules for next season.
Clubs can spend up to 85% of their football money on players and coaches.
If they spend too much, they'll get fined or lose points.
These rules are simpler and easier to understand than before.
They also check if clubs have enough money to last a long time.
New 'Squad Cost Ratio' (SCR) limits spending on player wages, transfer fees, and agent payments to 85% of football-related revenue and net profit/loss on player sales.
Clubs can exceed this by an additional 30%, but crossing the 'Red Threshold' incurs fines and points deductions.
SCR is closer to UEFA's framework, aiming for clarity and consistency in financial management.
Spending limits are set season by season, offering quicker accountability and reducing uncertainty around sanctions.
Parallel checks called 'Sustainability and Systemic Resilience' (SSR) focus on working capital, liquidity, and positive equity for long-term financial sustainability.
- Who
- The Premier League
- What
- Implemented new spending controls called 'Squad Cost Ratio' (SCR) and 'Sustainability and Systemic Resilience' (SSR)
- When
- Ahead of the next season
- Where
- In the Premier League
- Why
- To reshape how clubs manage their finances and protect competitive balance
- Spending Limit
- 85% of football-related revenue and net profit/loss on player sales
- Additional Spending Allowed
- 30%
- Sanctions for Exceeding Limit
- Fines and points deductions
- Assessment Timeline
- Season by season
- Parallel Checks
- Sustainability and Systemic Resilience (SSR)