The Premier League have released a statement on a new financial system set to be trialled next season. The current Profit and Sustainability Rules allows clubs to only lose £105million over a rolling three-year period with many teams facing the possibility of punishments after both Everton and Nottingham Forest were docked points during the 2023/24 season.
At the most recent annual general meeting between all 20 Premier League clubs, many topics were discussed including Wolves’ proposal to abolish VAR, which unsurprisingly was not passed. Club finances were also a major talking point with Aston Villa’s suggestion to increase losses over a three-year period to £135million also rejected.
However, there was one major change that got through that could change how PSR is handled in the future with the Premier League releasing a statement on the changes. “At the Premier League’s Annual General Meeting today, clubs agreed to trial an alternative League-wide financial system next season on a non-binding basis,” an official statement read.
“The existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will trial Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) in shadow.
“This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.
“The overall system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League, promote aspiration of clubs, facilitate a workable alignment with other relevant competitions and support clubs’ competitiveness in UEFA club competitions, while providing certainty and clarity for clubs, fans and stakeholders.
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“SCR will regulate on-pitch spend to a proportion (85%) of a club’s football revenue and net profit/loss on player sales. TBA is a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season.
“It is designed to be a pre-emptive measure to protect the competitive balance of the Premier League. This protection is intended not to have an impact unless significant revenue divergence of clubs occurs.”