The Premier League financial fair play rule change ends asset-sale loopholes as clubs approve the new SCR system aimed at stricter spending contro
According to BBC Sport on Friday, the Premier League financial fair play rule has undergone a significant transformation after clubs voted to tighten regulations and close long-criticised loopholes.
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Officials confirmed that Premier League sides have approved the Squad Cost Ratio system, a new framework that replaces the Profit and Sustainability Rules.
The vote passed by the slimmest margin, with fourteen clubs in favour and six against during a meeting in London.
From the 2026–27 season, overall squad spending will be capped at eighty-five per cent of club revenue, while teams competing in Europe must observe UEFA’s stricter seventy per cent limit.
The restriction covers wages for players and managers, transfer fees and agents’ commissions.
The most striking change is the end of the controversial practice that allowed clubs to sell hotels, training facilities or women’s teams to related companies.
Last year, Chelsea sold two hotels to a connected entity to stay within PSR limits, while Everton transferred ownership of their women’s team to the parent company.
Reports indicate Aston Villa were prepared to follow suit. Under the new rules, only football-related income will count towards compliance.
League sources said sustainability provisions, requiring clubs to outline medium- and long-term financial plans, were passed without opposition.
However, a proposal known as anchoring, which would have capped league-wide spending based on the revenue of the bottom-placed club, failed after twelve clubs rejected it.
In a statement, the Premier League said the SCR model would create greater competitive balance and streamline financial governance.
The league added that the new system includes transparent monitoring, protection against sporting underperformance, improved ability to invest off the pitch and a powerful simplification of cost assessments by focusing solely on football operations.
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The adoption of the Premier League Financial Fair Play Rule reform marks a decisive moment for English football, signalling a more disciplined and accountable financial era.
Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.
