Written by Sasha, Director of Marketing & Advertising and Reporter in ISFM
The Premier League has completely changed its financial rules. They ended the old system, called the “Profitability and Sustainability Rules” (PSR). This happened because of investigations into past rule breaking. Manchester City were just found guilty of 114 financial charges!! The main part of the new system is the “Squad Cost Ratio” (SCR). This rule makes sure that the money a club spends on football is directly linked to the money it earns. Under these rules, teams that play in Europe can only spend seventy percent of their total money on wages and transfer fees. Teams that only play in England can spend up to eighty-five percent. This stops rich owners from adding millions of dollars into a club to boost its budget.
The old Manchester City case took many years to investigate. To fix slow investigations, the Premier League now checks each club’s money multiple times during the season. If a team breaks the rules, they can be punished right away in the same season. This means they could lose points or be banned from buying new players immediately. These new rules are meant to keep the league stable and make sure every team has a fair chance to compete. You don’t see that every day!
Written by Sasha, Director of Marketing & Advertising and Reporter in ISFM
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