Premier League CEO Richard Masters has reportedly revealed that clubs will soon make a decision on whether to abandon its contentious profit and sustainability rules (PSR) and implement a new squad-cost ratio framework.
PSR, which was implemented in 2015–16 to stop clubs from going over their budget, has resulted in multiple violations by clubs and has been criticized by teams like Manchester City, Newcastle United, and Aston Villa for restricting spending power.
According to The Evening Standard, Masters said that an improved approach would better conform to UEFA’s financial rules, which set a 70% revenue maximum on a club’s expenditures on player salaries, transfers, and agency fees.
The Premier League’s cap would be higher at 85%, though.
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“We are talking to our clubs about an alternative system. That’s not to say we don’t think the PSR system works,” Masters told an audience at the Leaders sports conference.
“It’s about closer alignment with European regulation, which is squad cost ratio, which is a revenue test.
“The PSR is a look-back profitability test and has its own strengths and weaknesses. No system will be perfect.
“We have to keep these things balanced and continue the conversation with our clubs, and that’s an important decision, so we should take the time to get it right. But that decision is coming up.”
With £6.7 billion in domestic broadcast rights alone for the 2025–2029 cycle, England’s top division is by far the most profitable soccer league in the world.
Next month, Premier League clubs will vote on the new regulations, which were originally planned to be implemented for this season.
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