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

Updated: 2026-11-09

Official league rule — modeled in Zelador

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.

Squad Cost Ratio (Premier League)Premier League

Check	Limit	Detail
Squad Cost Ratio (green threshold)	≤ 85%	Shown against the full squad cost (wages, amortisation and agent fees, including staff). The Premier League counts player costs only — enter your wage bill separately for the closer test.
Red threshold	≤ 115%	An absolute limit up to 30 points above the green threshold (115% to start). Over the green line on 1 March means an end-of-season accounts check and a levy if still over on actual figures, with no sporting sanction; over the red line means a points deduction. A breach on actual figures cuts the next season’s headroom by the size of the breach.
Replaced PSR	—	The Squad Cost Ratio and the Sustainability and Systemic Resilience rules replaced Profitability and Sustainability (the £105M three-year loss limit) from 2026/27, after a shadow-run season. There is no loss test under the new rules; earlier seasons were assessed under PSR.
Financial resilience (IFR)	—	The IFR licenses on an assessed financial plan, not a numeric spending limit — a deficit here flags resilience questions the plan must answer; it is not a breach.
IFR provisional licence	—	Every club in the top five tiers of English football must hold a provisional IFR licence ahead of 2027/28. Final licensing rules were published on 1 July 2026.
Licence application documents	—	Applying requires a financial plan, a strategic business plan, a personnel statement and a corporate governance statement. A provisional licence runs up to three years while the club works toward a full licence.

Timeline

Squad Cost Ratio in force from 2026/27 · squad costs within 85% of football revenue (green) · red threshold up to 30 points higher · tested 1 March, monitored in October · levy between the thresholds, points deduction above red · replaced the £105M PSR limit.

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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.

Is Premier League PSR the same as the Championship rules?

No. PSR was the Premier League test, with the £105M three-year loss limit; the Championship ran Profitability and Sustainability at £39M. Both leagues replaced their loss tests with cost-ratio regimes from 2026/27, which is why articles still quoting either number are quoting rules that no longer apply.

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.

When does the IFR licence application window open?

Applications for the provisional licence open at the start of November 2026 and close on 26 February 2027. Premier League clubs apply like the rest of the top five tiers, with the financial plan among the required documents.