Premier League clubs will no longer be able to sell assets like hotels and women's teams to themselves from next season to get round new financial rules. It comes after clubs narrowly voted through a new system of Financial Fair Play (FFP) based on squad costs on Friday.
The clubs met in London to vote on three possible methods of replacing Profit and Sustainability Rules (PSR). Squad Cost Ratio (SCR) got 14 votes in favour and 6 against, which is the minimum number that is required to enact a rule change.
Overall squad costs from the 2026-27 campaign will have to be limited to 85% of a club's revenue, although teams competing in Europe will have to adhere to Uefa's maximum of 70%. Squad costs comprise player and manager wages, transfer fees and agents' fees.
Most notably it will end the loophole of selling capital assets, like hotels and women's teams. Last year, Chelsea sold two hotels to a sister company to keep them compliant with PSR. In July, Everton sold their women's team to the parent company, while reports claim Aston Villa have agreed to do the same.
The assessment will only be based on a club's total earnings from football operations. Rules around sustainability, which set out a club's financial spending plans over the medium and long term, were passed unanimously.
But anchoring, which would have placed a top limit on spending based on the money earned by the bottom club, failed to get the necessary support, with 12 clubs voting against it, 7 in favour and 1 abstaining.
"The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and bring the league's financial system close to Uefa's existing SCR rules," a Premier League statement read.
"The other key features of the league's new system include transparent in-season monitoring and sanctions, protection against sporting underperformance, an ability to spend ahead of revenues, strengthened ability to invest off the pitch, and a reduction in complexity by focusing on football costs."
Quotes sourced from BBC Sport
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1 Posted 21/11/2025 at 20:27:03
So it only just scraped through. I think we've been close to or over that 85% figure, but increased revenue from Hill Dickison Stadium should improve things for us.
Pity there wasn't a campaign to scrap all such rules as anti-competitive, but of course they have to kow-tow to Europe. What about Brexit!