Premier League clubs will be restricted from selling assets like hotels or women’s teams to themselves to bypass financial regulations under new Financial Fair Play rules, with squad costs capped at 85% of revenue.
The Premier League has approved new Financial Fair Play rules, replacing the Profit and Sustainability Rules with the Squad Cost Ratio (SCR) system, aimed at promoting financial transparency and fairness among clubs. Under the changes, clubs will have to limit squad costs which include player and manager wages, transfer fees, and agent fees to 85% of their revenue, while European competitors must adhere to UEFA’s 70% cap.
A key provision ends the loophole allowing clubs to sell capital assets, such as hotels or women’s teams, to themselves to appear compliant, a practice previously used by Chelsea, Everton, and Aston Villa. The new rules also introduce transparent in-season monitoring, sanctions, and the ability to invest off the pitch, while removing complex spending limits like anchoring, which failed to secure support.
As the Premier League statement explains: “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.”