The Premier League is poised to decide on the future of its financial regulations, with a potential shift away from the current Profit and Sustainability Rules (PSR) “coming up,” according to league chief executive Richard Masters.
The move comes amid growing debate over whether PSR, introduced in the 2015-16 season to prevent overspending and allow maximum losses of £105m over a three-year period, is hindering clubs’ ability to invest. Several top-flight teams have voiced criticism of the existing rules.
A decision on potential changes is expected at a meeting in November, following a Febuary vote where clubs opted to maintain PSR for the current season. However, the league has already begun exploring an choice system – the squad cost ratio (SCR) – on a non-binding basis.
SCR, similar to regulations already in place at UEFA, woudl limit spending on squad-related costs to a percentage of a club’s total revenue. Masters emphasized that the Premier League isn’t dismissing the current PSR system, stating, “We are talking to our clubs about an alternative system. That’s not to say we don’t think the PSR system works.”
The proposed SCR would be set at 85%,higher than UEFA’s current 70% threshold,”because we always want our clubs to have the ability to invest,” Masters explained at the Leaders sports conference in London. He added that the Premier League’s success is “built on the back of investment in which international capital flows [are] coming in,” and the league wants to avoid stifling that investment.
Nine Premier League clubs are already subject to UEFA’s SCR due to European qualification. Both Chelsea and Aston Villa were recently fined by UEFA in July for breaches of those rules.
