Premier League clubs agree ‘in principle’ for new financial rules set to impact Newcastle United, Everton & co

Premier League clubs have agreed ‘in principle’ to introduce new financial rules in a move that could bring to an end the Premier League’s current Profit and Sustainability Rules. The new ‘squad cost’ rules would limit clubs to spending 85% of their revenue on transfers, wages and agent fees.

These new financial rules will be similar to UEFA’s current financial rules and mean a more fluid financial system where clubs are encouraged to drive up revenues and thus be able to spend more - rather than the current system which limits all clubs to a maximum loss of £105m over a rolling three-year period. Changes to these rules comes after Everton and Nottingham Forest have been handed points deductions by the Premier League for breaching the current Profit and Sustainability Rules.

Premier League clubs agreed unanimously on to progress discussions on the finer details of the Premier League squad cost rules with the aim on implementing these this summer. A further vote, which had a majority agreement, was on how these new financial rules would be phased into the game.

Any new rules will be officially voted in during the Premier League’s AGM in June and a transition period will be implemented where these new rules will shadow the current PSR rules. Points deductions, as have been handed out to Everton and Forest this season, will remain as a deterrent to clubs breaking these rules.

The current Profit and Sustainability Rules are expected to be scrapped in time for the 2025/26 campaign and are expected to be replaced by these new ‘squad cost’ rules.