Premier League confirm new financial system for 2024/25 season

The Premier League have confirmed that clubs have agreed to trial an alternative league-wide financial system from next season but Profit and Sustainability Rules (PSR) will remain in place.

Everton were a high-profile case surrounding financial breaches last season as they were deduced eight points after being found guilty of two charges that threatened their top-flight status in England. The Blues were handed a record-breaking 10-point deduction in November 2023 after exceeding the permitted £105million for the 2021/22 season which amounted to £124.5million.

The sanction was later reduced to six points but the Blues were found to be in further breach of the PSR rules by £16.6million for the three-year period to 2022/23. The independent panel deduced Everton two points – taking the total to eight points.

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In a statement, the Premier League said: “At the Premier League’s Annual General Meeting today, clubs agreed to trial an alternative League-wide financial system next season on a non-binding basis.

“The existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will trial Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) in shadow.

“This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.

“The overall system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League, promote aspiration of clubs, facilitate a workable alignment with other relevant competitions and support clubs’ competitiveness in UEFA club competitions, while providing certainty and clarity for clubs, fans and stakeholders.

“SCR will regulate on-pitch spend to a proportion (85%) of a club’s football revenue and net profit/loss on player sales. TBA is a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season.

“It is designed to be a pre-emptive measure to protect the competitive balance of the Premier League. This protection is intended not to have an impact unless significant revenue divergence of clubs occurs.”