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The team cost ratio system for financial control has been adopted by the Premier League on a trial basis this season.
The team cost ratio allows clubs to spend up to a percentage of their total revenue on team-related costs.
It is similar to the SCR ratio used by UEFA for European competitions, which is set at 70%.
Premier League clubs in Europe will be capped at this percentage to comply with UEFA rules.
This means Liverpool, Arsenal, Manchester City, Chelsea, Newcastle, Tottenham, Aston Villa, Crystal Palace and Nottingham Forest are restricted to 70%.
Richard Masters, the Premier League’s chief executive, said non-European clubs would be capped at 85%, “because we always want our clubs to have the ability to invest”.
The Premier League is also experimenting with a top-down stabilization model, which sets the amount any club can spend as a multiple of the income received by the bottom team in the league.
If adopted, these rules will replace the current Profit and Sustainability Rules (PSR) and come into force at the beginning of the 2026-2027 season.
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