Premier League clubs will no longer be able to sell assets such as hotels or women’s teams to affiliated entities in order to navigate around financial regulations, following the introduction of new Financial Fair Play measures.
The decision was reached on Friday in London, where clubs voted on a replacement for the Profit and Sustainability Rules. The proposed Squad Cost Ratio (SCR) system passed with the minimum threshold of 14 votes, while six clubs voted against it.
Under the new framework, from the 2026–27 season, clubs must restrict overall squad spending to 85 per cent of their revenue. Sides competing in UEFA tournaments will continue to observe the European body’s stricter cap of 70 per cent. Squad expenditure includes wages for players and managers, transfer outlays and agents’ fees.
One of the most significant shifts is the closure of the asset-sale loophole. In recent seasons, clubs such as Chelsea and Everton sold hotels and women’s teams within their ownership structures to remain compliant with PSR requirements. Aston Villa have also been reported to be considering a similar move. The new rules stipulate that only income from football-related operations will count toward compliance assessments.
Clubs also unanimously endorsed sustainability regulations outlining long-term spending plans. However, a proposal to introduce ‘anchoring’—which would cap spending relative to the revenue of the bottom-ranked club—failed to gain traction. Seven clubs backed the plan, 12 opposed it and one abstained.
A Premier League statement said the revised SCR is designed to align domestic financial governance with UEFA systems and support competitive balance. It added that the framework would feature more transparent monitoring, safeguards against major sporting decline, provisions for controlled investment and a streamlined focus on football-related costs.
