Clubs agree to cap spending on players as part of Premier League PSR reform

Premier League clubs have voted unanimously to adopt rules that will cap spending on players, as part of a reform of controversial profitability and sustainability rules (PSR).

The full reform of PSR rules is ongoing, with officials hoping it will be completed by the time of the Premier League AGM in June, but cost control ratios will now in principle form the centre of any plans.

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Under the proposed controls clubs in European competition would be limited to spending 70% of their revenues on player-related costs, which include transfer fees, agents fees and wages. The other clubs would be able to spend 85%, part of the league’s desire not to limit ambition among challenger teams.

If the league’s timings go to plan, new rules will be tried out in shadow form next season before being implemented in 2025-26. A full set of rules based around the cost control ratio will be drafted over the next two months.

The 70% rule is in line with Uefa’s cost control mechanisms, which will be fully in place by 2025-26. The 85% figure was previously mooted as part of discussions with the English Football League over financial redistribution. In March the Premier League walked away from those negotiations in favour of reforming PSR first.

The Guardian understands that minor breaches of the new rules could result in financial penalties but points deductions will remain the chosen sanction for any serious breach.

This season, for the first time, Premier League clubs have been the subject of sporting sanctions after being found in breach of PSR rules. Everton have been handed deductions of six and two points for breaches in separate time periods, and could face a third ruling next season. Nottingham Forest have been deducted four points and Leicester, Chelsea and Manchester City are in the process of having alleged breaches assessed.