Change is the path to progress! Premier League clubs vote to introduce new financial regulations

The new financial regulations will come into effect next season.

Details: Today, the leadership meeting of all English Premier League clubs concluded with a vote on significant changes to the league's financial rules.

Some proposals were accepted, while others failed to convince club shareholders to vote in their favor.

Following the vote, it was decided that starting from the 2026/27 season, the Premier League will implement the so-called “Squad Cost Ratio” and “Sustainability and Systemic Sustainability” regulations, which include:

• “Squad Cost Ratio” – clubs can spend up to 85% of their football-related revenue and profit from player sales. A multi-year 30% “overspend” buffer (with taxes) is introduced, after which strict limits or sanctions apply.
• “Sustainability and Systemic Sustainability” – evaluation of the club’s short-term, medium-term, and long-term financial health using three tests: the working capital test, liquidity test, and positive equity test.

A “salary cap floor” rule, which would have imposed a strict salary ceiling for players regardless of a club’s budget or status, was also put to the vote.

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