"PSR limited the total losses any one club could make over a three-year period to 105m. By contrast, SCR only covers a single year of club activity, from summer to summer. The only exception is player sales, which will continue to be considered based on amortisation. (That's a bit complicated, but basically allows the club to record transfer fees in instalments over a number of years.)"
"SCR is not based on club losses, either, but on how much each club's 'squad cost' - that includes player and head coach/manager wages, agents' fees, and transfer fees per the above. A club's squad cost may not exceed 85% of the club's revenue (income) in any given season. That number is reduced to 70% for clubs in the Champions League, because that is the number UEFA has set for that competition;"
PSR limited the total losses any one club could make over a three-year period to 105m. SCR applies to a single season, running from summer to summer, while player sales remain subject to amortisation allowing transfer fees to be recorded over multiple years. SCR measures 'squad cost' rather than losses, including player and head coach/manager wages, agents' fees, and transfer fees treated per amortisation rules. A club's squad cost may not exceed 85% of revenue in a season, reduced to 70% for Champions League participants. The 85%/70% thresholds are set against revenues predicted at season start as a 'Green Threshold', with an additional 30% 'Red Threshold' buffer to accommodate unforeseen revenue variances.
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