From 2026/27, squad spending is tied directly to revenue.
What happened
Premier League clubs voted on 21 November 2025 to replace the Profitability and Sustainability Rules with a squad cost ratio. From 2026/27, spending on wages, amortised transfer fees and agents' fees is limited to 85% of football revenue plus net profit or loss on player sales. Fourteen of the twenty clubs voted in favour, just reaching the two-thirds majority required.
How it was structured
Clubs start with a multi-year allowance of 30 percentage points, which carries a levy and shrinks when used. Those above their limit, which starts at 115%, face points deductions. A separate anchoring proposal, which would have worked like a salary cap, was rejected.
Our review
The test now looks at revenue rather than long-run losses. New borrowing does not create spending capacity by itself, so lenders will want to read a club's headroom under the ratio alongside its covenants.
Sources
Not RMF transactions, just general football and sports transactions. Figures are as publicly reported, and reports sometimes differ. General market commentary, not investment, legal or financial advice.