Premier League set to amend spending rules to give clubs more flexibility for transfers

"Under squad cost ratio (SCR) rules approved last November clubs will be restricted to spending 85% of their revenue on player costs, with a levy payable to the Premier League, for distribution among the other clubs, in the event of a breach. A six-point deduction would also be imposed if a club's spending reached 115% of revenue."

"Under the terms of an amendment introduced at a shareholders' meeting on Thursday, clubs that do not spend their 85% allowance for two seasons will be permitted to roll over up to 10% in the third year, enabling them to breach the cap without incurring a fine."

"Brighton brought the amendment over concerns that SCR would in effect penalise them and other well-run clubs, who never came close to breaching profitability and sustainability rules (PSR), by removing their ability to bank PSR headroom for later use."

The Premier League is modifying its squad cost ratio (SCR) spending rules before implementation next season. Originally, clubs would be restricted to spending 85% of revenue on player costs, with penalties for breaches. The amendment introduces a levy offset mechanism allowing clubs that spend below their 85% allowance for two consecutive seasons to roll over up to 10% in the third year, enabling them to spend up to 95% without incurring fines. This change addresses concerns from well-run clubs like Brighton that would be penalized despite maintaining profitability. The 10% cap prevents advantages for European competitors. All 20 clubs supported the proposal, and formal approval via postal vote is expected before the summer transfer window.

Read at www.theguardian.com