Premier League clubs will no longer be permitted to sell assets—such as hotels or women’s teams—to themselves in an attempt to bypass financial regulations, following the approval of new Financial Fair Play (FFP) measures.
According to BBC Sport on Friday, clubs met in London and voted in favour of replacing the Profit and Sustainability Rules with the new Squad Cost Ratio (SCR) system. The vote passed narrowly, with 14 clubs supporting the change and six opposing it—the minimum required for approval.
Under the SCR, total squad spending from the 2026–27 season must be capped at 85 per cent of a club’s revenue. Clubs competing in UEFA competitions will face a stricter limit of 70 per cent.
Squad costs include wages for players and managers, transfer fees, and agents’ fees.
Crucially, the revised rules close the loophole allowing clubs to sell capital assets to related companies to bolster their financial standing. Last year, Chelsea sold two hotels to a sister company to stay within PSR limits. Everton also sold their women’s team to their parent company in July, while reports suggested Aston Villa were preparing a similar move.
Under the new framework, financial assessments will focus solely on football-related revenue.
Clubs unanimously approved rules relating to long-term financial sustainability. However, a proposal known as ‘anchoring’—which would have placed a ceiling on spending based on the revenue of the league’s lowest-earning club—did not pass. Twelve clubs voted against it, with seven in favour and one abstaining.
“The new SCR rules are designed to create opportunities for all clubs to compete for success and to bring the league’s financial structure closer to UEFA’s existing model,” the Premier League said in a statement.
The league added that the revised system will feature improved in-season monitoring, protection against sporting underperformance, the ability to spend ahead of revenue, stronger off-pitch investment opportunities, and simplified financial reporting focused on core football costs.
