In a landmark decision that will reshape English football's financial landscape, Premier League clubs have voted to introduce a new set of financial regulations, marking the end of the controversial Profit and Sustainability Rules (PSR).
The Vote That Changed Premier League Finance
During a pivotal shareholders' meeting on Friday, November 21, 2025, representatives from all 20 Premier League clubs, including Aston Villa, cast their votes on three major proposals. The outcome saw clubs approve the implementation of Squad Cost Ratio (SCR) rules and Sustainability and Systematic Resilience (SSR) measures, while rejecting the contentious top-to-bottom anchoring proposal that would have introduced a strict spending cap.
The failed anchoring system would have allowed clubs to spend only five times the television revenue distributed to the division's poorest club, effectively creating a hard spending ceiling. This proposal faced significant opposition from several major clubs, including Arsenal, Manchester City, and Manchester United, with United's co-owner Sir Jim Ratcliffe having been particularly vocal in his criticism of such measures.
Understanding the New Financial Framework
The approved SCR rules will take effect from the start of the 2025/26 season, bringing the Premier League closer to UEFA's existing financial framework. Under the new system, clubs will be restricted to spending 85% of their football revenue and net profit from player sales on football costs, including wages and transfer fees.
Clubs will receive a multi-year allowance of 30% that permits spending above the 85% threshold, though utilising this allowance will incur a levy. Once exhausted, clubs must comply with the 85% limit or face sporting sanctions.
The new regulations represent a significant departure from the current PSR system, which forced Aston Villa to sell key players like Douglas Luiz and Jacob Ramsey in recent transfer windows to remain compliant.
What This Means for Premier League Clubs
For the nine clubs currently competing in UEFA tournaments, the transition may prove smoother as they already operate under UEFA's stricter 70% SCR threshold. The new Premier League version offers slightly more flexibility with its 85% limit.
Unlike PSR, which assessed profitability over three years, SCR will focus solely on football-related expenses over a single year. However, player sale profits will be averaged over three years, preventing clubs from using quick-fire sales as an immediate solution to financial issues.
The Sustainability and Systemic Resilience rules will assess clubs' financial health through three tests: Working Capital, Liquidity, and Positive Equity.
Aston Villa co-owner Nassef Sawiris, who previously criticised PSR for "cementing the status quo" rather than promoting mobility in football, will likely welcome these changes that aim to create more competitive balance.
The existing Profitability and Sustainability Rules will remain in place for the remainder of the 2025/26 season before the new system takes full effect, marking another significant evolution in the Premier League's financial governance.
