Premier League clubs have blocked plans to introduce a strict salary cap linked to the earnings of the division’s lowest-placed side, but they have voted through a major overhaul of financial regulation that will replace the current Profit and Sustainability Rules (PSR) from next season.
In a decisive meeting on Friday, clubs rejected the so-called “anchoring” proposal, which would have capped each team’s spending at five times the broadcast and prize money awarded to the club finishing 20th in the table.
The proposal gained only seven votes in favour, with 12 against and one abstention – well short of the 14 votes required for rule changes.
The plans had already sparked fierce opposition, including the threat of legal action from the Professional Footballers’ Association, supported by several of football’s biggest agencies.
Despite the collapse of anchoring, clubs did approve two new regulatory mechanisms designed to reshape spending across the league: the Squad Cost Ratio (SCR) and Systematic Resilience Rules (SSR).
SCR passed by majority vote, while SSR received unanimous backing and will take effect in the 2026–27 campaign, marking the end of PSR and its £105million loss limit over a rolling three-year period.
Under SCR, clubs will be restricted to spending a maximum of 85 per cent of their football revenue plus net profit or loss on player trading.
Five facts about the Premier League | PA/GETTY/REUTERS/GBNEWS
A “multi-year allowance” of a further 30 per cent will allow temporary overspending, mirroring elements of UEFA’s financial model, which caps spending at 70 per cent of revenue.
Unlike UEFA’s annual system, however, the Premier League version will operate over the domestic season.
In a statement, the league said the updated approach was intended to “promote opportunity for all clubs to aspire to greater success”, while offering more transparent monitoring and clearer sanctions.
PSR will be gone from next season
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The system also allows clubs to “spend ahead of revenues”, giving controlled flexibility for investment in squad building, and it is claimed the simplified structure will reduce the complexity of regulatory breaches seen in recent years.
The introduction of SSR rules adds a further layer of assessment, focusing on the financial robustness of Premier League teams.
According to the statement, clubs will be examined through three tests: working capital, liquidity and positive equity.
The aim is to ensure that sides retain sufficient resources to meet obligations, can withstand volatility in income, and demonstrate long-term financial stability.
The English clubs with the most Premier League titles
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The reforms follow months of political and legal pressure, with the league seeking to modernise its rules before a government-mandated independent regulator is formally introduced.
Friday’s result draws a clear line under the PSR era, but the rejection of anchoring leaves open an ongoing debate: how to control escalating wages without inviting legal dispute from the game’s most powerful stakeholders.
With Premier League spending continuing to dwarf that of rival leagues, the effectiveness of its new financial framework will be closely scrutinised long before the first test of the SSR is even applied.
Matches resume on Saturday following the conclusion of the recent international break.
