Premier League: the Squad Cost Ratio replaces the £105M PSR rule

Codified rule — official league figures

Premier League clubs no longer plan against the £105M three-year loss allowance. From the 2026/27 season the league runs a Squad Cost Ratio: squad costs — player wages, amortised transfer fees and agents’ fees — within 85% of revenue, with a multi-year allowance of 30% for spending above the line, alongside new Sustainability and Systemic Resilience rules. The framework was shadow-run through 2025/26 so clubs could restructure before it became enforceable. PSR is history now, but consequential history: the points deductions it produced are why nobody treats the successor as a formality.

Frequently asked questions

What is the Premier League spending limit now?

Squad costs — player wages, amortised transfer fees and agents’ fees — within 85% of revenue, from the 2026/27 season, with a multi-year allowance of 30% for spending above the ratio.

Is the £105M PSR limit still in force?

No. The Squad Cost Ratio and the Sustainability and Systemic Resilience rules replaced Profitability and Sustainability from 2026/27, after a shadow-run season. Earlier seasons were assessed under PSR.

What happens on a breach?

Under PSR, charges before an independent commission led to points deductions. The successor regime keeps independent enforcement; how sanctions land under SCR is being established as the first enforceable season plays out.

How does Zelador Football help?

It tracks squad costs against the 85% line as the season runs, models wages, amortisation and agent fees the way the ratio counts them, and simulates a signing before you commit to it.

What is the Independent Football Regulator licence?

From 2027/28 every club in the top five tiers, Premier League included, must hold a provisional IFR licence. Applying requires a financial plan, a strategic business plan, a personnel statement and a corporate governance statement; final rules were published on 1 July 2026.

Related rules

• EFL Championship: Squad Cost Rules replace the £39M P&S limit
  From 2026/27 Squad Cost Rules cap Championship player and manager costs at 85% of income, plus a £33M equity top-up: what replaced PSR and the £39M limit.
• League One: the SCMP wage ratio fell to 50%
  League One SCMP fell from 60% to 50% of turnover for 2026/27, with manager costs now counted. What changed, and what the PFA is contesting in the High Court.
• League Two: the Salary Cost Management Protocol (SCMP)
  League Two SCMP caps player wages at 50% of turnover, unchanged since 2018/19. In-season monitoring, registration embargoes, and the new IFR licence.
• The IFR licence: National League clubs, regulated for the first time
  The Independent Football Regulator licenses all top-five-tier English clubs from 2027/28: what the provisional licence requires and how National League clubs prepare.