Premier League passes landmark PSR rule with clubs barred from selling any hotels or women’s teams for book balancing.
Premier League clubs can no longer sell hotels or women’s team to comply with spending rules.
Following the adoption of a new financial rule book, Premier League clubs will no longer be allowed to circumvent expenditure restrictions by selling hotels or their women’s teams.
Fourteen of the twenty Premier League teams voted in favour of replacing the current profitability and sustainability regulations (PSR) with a squad cost ratio (SCR) system during a meeting on Friday. The introduction of contentious anchoring proposals was largely rejected by the clubs.
Clubs will be required by SCR to keep squad expenses, such as player salary and transfer fees, within 85% of their net profit or loss from player sales and football-related revenue. This allowance does not apply to the disposal of capital assets.
Dan Friedkin, chair of the club’s owner, The Friedkin Group, controls Roundhouse Capital Holdings, which purchased Everton’s women’s squad in July. The goal of the move was to draw in fresh funding for Everton Women, but it also had an impact on the Merseysiders’ PSR computation, giving them more money to spend on transfers.
SCR will take effect for the upcoming season, and if regulations are broken too frequently, clubs may lose points for the subsequent campaign. Clubs will be fined if they spend more than the “green threshold,” which is 85%. A sporting consequence, most likely the loss of points, will follow exceeding a “red threshold” of 115% of spending. Teams who have fully cooperated with SCR will split any fines into a collective pot.
Bournemouth, Brighton, Brentford, Crystal Palace, Fulham, and Leeds are the six teams that reportedly voted against SCR.