Premier League clubs met to vote on a new proposal for a salary cap to be introduced for the 2026/27 season. Though that was voted against, it was agreed that the Profit and Sustainability Rules (PSR) would be replaced with the Squad Cost Ratio (SCR) for the next campaign.

The SCR and the Sustainability and Systematic Resilience Proposal (SSR) were voted through. Fourteen out of the twenty teams in the Premier League voted in favor of the new SCR rules, and this was the minimum number of votes needed to pass the proposal. The Top to Bottom Anchoring (TBA) regulations, which would limit the spending of a club’s costs to five times the amount the bottom club receives from the Premier League’s broadcasting and prize money, did not receive adequate votes.

Before the SCR was voted in, teams would be allowed to spend a maximum of 85% of their revenue on squad costs, which covers transfers, wages, and agent fees. A version of SCR has already been being tested alongside PSR since the middle of last season.

Now, each club will be set a “green threshold,” which is 85 % of their revenue, and then also a “red threshold,” which is an absolute spending limit of up to 30% of the green threshold. If a team is above the green, but below the red, they will receive a fine, but not a deduction of points. If a club is above the red, they will receive a “sporting sanction,” which is a fine. The sanction is a fixed six-point deduction, which will increase by a point for each $6.5 million spent over the red threshold.

Clubs will be able to appeal the point penalties or any fines. If a team is hit with a violation, they will have seven days to challenge the decision of the board, after first having to write to the league to try and sort out the issue.