At the Premier League’s Annual General Meeting last month, clubs agreed to trial an alternative League-wide financial system next season on a non-binding basis.
The existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will trial Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) in shadow.
This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.
The overall system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League, promote aspiration of clubs, facilitate a workable alignment with other relevant competitions and support clubs’ competitiveness in UEFA club competitions, while providing certainty and clarity for clubs, fans and stakeholders.
SCR will regulate on-pitch spend to a proportion (85%) of a club’s football revenue and net profit/loss on player sales. TBA is a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season. It is designed to be a pre-emptive measure to protect the competitive balance of the Premier League. This protection is intended not to have an impact unless significant revenue divergence of clubs occurs.
The Premier League is inviting agents to provide comments on the proposals. If you would like to contribute to this consultation, please fill out the form found here. The deadline for this consultation process is 31st July 2024.