"Three proposals are to be put in front of the league's shareholders. The most straightforward looks to assess a club's financial sustainability, adding tests that examine short-, medium- and long-term projections of a club's finances and ensure clubs have sufficient resources to ensure any needs are met. These are similar to requirements soon to be asked of clubs by the new football regulator."
"Second, there is the proposed squad-cost ratio (SCR) rule, which would replace the profitability and sustainability rules (PSR) of financial controls and limit clubs to spending no more than 85% of annual revenue on football costs, understood to take in everything from player wages to transfer fees and the cost of coaching staff. This measure is similar to Uefa's for its competitions, where clubs must spend no more than 70% of revenues on football costs."
Executives of the 20 Premier League clubs are meeting to consider three proposed financial regulations that have been in development since October 2021. The first proposal would introduce financial sustainability tests examining short-, medium- and long-term projections to ensure clubs hold sufficient resources. The second would replace profitability and sustainability rules with a squad-cost ratio (SCR), capping football costs at 85% of annual revenue and encompassing wages, transfer fees and coaching costs. The third, top-to-bottom anchoring (TBA), would cap club spending at five times the central payments received by the league’s bottom club, implying a potential 550m ceiling based on 109.2m.
Read at www.theguardian.com
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