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Premier League · Rules
The Premier League's 85% squad cost ratio, explained in five minutes
SCR caps squad spending at 85% of football revenue, with a 30% allowance on top. What counts, when clubs are tested, and how points deductions work.
Footy Cap desk ·
From 2026/27 the Premier League caps what each club spends on its squad at 85% of its football revenue plus net profit or loss on player sales. This Squad Cost Ratio (SCR) replaces the old profit-and-sustainability rules, and clubs can go above 85% by using a 30% multi-year allowance, so the effective starting ceiling is 115% (Premier League; BBC Sport).
Clubs voted it in at a shareholders' meeting; a proposal to tie spending to the bottom club's income ("anchoring") did not get enough support (Premier League).
What counts as squad cost
Squad cost is first-team player and head-coach wages, transfer amortisation (a fee spread over the contract), agent fees and write-downs of player values (BBC Sport; Premier League).
Stadium, academy, women's-team and non-playing staff costs are left out (BBC Sport). That is deliberate: the league says SCR leaves clubs free to spend on things off the pitch (Premier League).
How the 115% works
Every club starts the season on 85% plus the full 30% allowance. The BBC's example: a club that spends 105% in 2026/27 uses 20 points of allowance, so its ceiling for 2027/28 is 95%. Spending below 85% rebuilds the allowance, up to 30% (BBC Sport).
Between 85% and the ceiling, a club pays a levy. Above the ceiling, the sanction is a fixed six-point deduction plus one more point for every £6.5m over (BBC Sport).
PSR vs Squad Cost Ratio at a glance
| Old rule: PSR | New rule: SCR | |
|---|---|---|
| What it limits | Total losses | Spending on the squad |
| The line | £105m of losses over 3 years | 85% of football revenue (plus net player-sale profit) |
| Extra room | Deductions for academy, women's, community, infrastructure | A 30% multi-year allowance, so 115% to start |
| When it's tested | After the accounts, on a rolling 3 years | 1 March each season, with October monitoring |
| Over the line | Points deduction after a hearing | 85–115%: a levy. Over 115%: six points, plus one per £6.5m over |
Sources: Premier League, BBC Sport, PSR limit via The Times, reported by the Chelsea Chronicle.
When clubs are tested
The main test is on 1 March, after the January window shuts, with monitoring each October. Clubs above 85% in March face follow-up tests in June and October against their accounts (Premier League).
Before the season, each club and the league agree its estimated football revenue. That fixes the 85% ("green") and red thresholds for the year, so a bad run on the pitch does not shrink the limit mid-season (Premier League).
Is it the same as UEFA's 70%?
No. UEFA's squad-cost rule for European competition is set at 70%; the Premier League's line is 85% for everyone, whether they are in Europe or not (BBC Sport). Clubs in Europe have to meet both. Footy Cap keeps the two in separate columns for that reason; see our methods.
What happens to PSR
PSR's last cycle covers 2023/24 to 2025/26, with a final assessment due in January 2027 (The Bean Counter). All 20 clubs passed the 2024/25 check, which allows losses of £105m over three years, The Times reported in February; Chelsea, Aston Villa and Everton were helped by selling their women's teams (Chelsea Chronicle, citing The Times). Our Premier League pages still show the £105m PSR line as the cap of record until that last cycle is assessed.
Revenue at the biggest clubs: the base the 85% is taken from
| Club | Revenue | Basis |
|---|---|---|
| Liverpool | €836.1m | 2024/25, Deloitte (source) |
| Manchester City | €829.3m | 2024/25, Deloitte (source) |
| Arsenal | €821.7m | 2024/25, Deloitte (source) |
| Tottenham | €672.6m | 2024/25, Deloitte (source) |
| Chelsea | €584.1m | 2024/25, Deloitte (source) |
| Manchester United | £677.6m | year to 30 Jun 2026, club 20-F (source) |
These are the figures on each Footy Cap club page. They are not the SCR base: the league agrees each club's football revenue with it before the season and does not publish the number (Premier League). Deloitte figures are in euros; United's is its own sterling filing for a later year, so do not rank across the two. We do not multiply these by 85% and call it a limit.
Quick answers
What is the Premier League squad cost ratio? A limit on squad spending at 85% of football revenue and net player-sale result, with a 30% allowance on top (Premier League).
Does SCR replace PSR? Yes, from 2026/27 (BBC Sport).
Can a club be docked points? Yes, six points once it is over 85% plus its remaining allowance, and one more per £6.5m beyond (BBC Sport).
Club-by-club figures: Chelsea, Manchester United, Manchester City, Arsenal, Liverpool, Tottenham.
Sources
- Premier League: new financial system explained
- Premier League statement: new financial rules
- BBC Sport: What do SCR and PSR rules mean?
- Chelsea Chronicle (citing The Times): 2024-25 PSR outcome
- The Bean Counter: Chelsea PSR and SCR tracker (compliance calendar)
- Deloitte Football Money League 2026
- Manchester United plc Form 20-F, year to 30 June 2026
Footy Cap does not forecast. Figures are as published on the dates shown; where our pages and a source differ, we say so above.
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