Premier League clubs have voted unanimously to adopt rules to limit player spending as part of controversial reforms to the Profitability and Sustainability Rules (PSR).
An overhaul of PSR rules is underway and officials hope to have it completed before the Premier League’s annual general meeting in June, but the cost containment ratio will now in principle be at the center of any plan.
Under the proposed controls, clubs competing in European competitions would limit 70% of their income to player-related costs, which includes transfer fees, agent fees and wages. Other clubs will be able to spend 85%, part of the league’s desire not to limit the ambitions of challenger teams.
If the league’s schedule goes as planned, the new rules will be tried in shadow form next season before being implemented in 2025-26. A full set of rules around cost-containment rates will be drafted in the next two months.
The 70% rule is in line with UEFA’s cost control mechanism, which will be fully in place by 2025-26. The 85% figure was previously raised during discussions with the EFL over financial reallocation. In March, the Premier League abandoned those talks and instead reformed the PSR first.
The Guardian understands minor breaches of the new rules may result in financial penalties, but for any serious breaches, penalty points will remain the sanction of choice.
For the first time this season, a Premier League club has been slapped with sporting sanctions for breaching PSR rules. Everton were deducted six and two points for infractions at different times and could face a third ruling next season. Nottingham Forest have had four points deducted and Leicester, Chelsea and Manchester City are assessing alleged breaches.
