A decision on whether to drop the Premier League’s controversial Profit and Sustainability Rules (PSR) and adopt a new system “is coming up,” says chief executive Richard Masters.
The PSR rules, introduced in 2015–16 to stop clubs overspending, allow losses of £105 million over a three‑year period. But several top clubs say those rules restrict their ability to invest.
According to reports, any changes are likely to be decided at a meeting in November.
Earlier in the year, clubs voted to stick with PSR for the current season. But the Premier League also introduced a Squad Cost Ratio (SCR) system on a trial basis. This is similar to UEFA’s financial rules and lets clubs spend a set percentage of their total income on player costs.
Nine of the 20 Premier League clubs already have to follow UEFA’s SCR because they qualify for European competitions. In July, both Chelsea and Aston Villa were fined by UEFA for breaking those rules.
Speaking at a conference in London, Masters said: “We are talking to our clubs about an alternative system. That’s not to say we think PSR doesn’t work.” He added the goal is to align more closely with European rules — that is, using SCR, which uses revenues as the test. While UEFA sets SCR at 70%, he said the Premier League would aim for 85% so clubs still have room to invest.
He continued: “The Premier League has been built on investment and international capital. We don’t want that to be smothered.”
In the 2023–24 season, Everton and Nottingham Forest were docked points for breaking PSR. In 2023, Aston Villa co‑owner Nassef Sawiris said the rules “do not make sense” and favoured the biggest clubs. He even considered legal action.
Newcastle manager Eddie Howe has also criticised PSR, saying it encourages clubs to sell their homegrown players to meet financial rules.
Masters acknowledged that the PSR has both strengths and weaknesses and that no system is perfect. He said: “We must keep balance, talk with our clubs, and ensure we make the right decision. But that decision is coming up.”
The Premier League is also testing another idea, called Top to Bottom Anchoring (TBA), which would limit how much any club can spend based on the income of the lowest‑earning club.
BBC Sport reports that if new rules are adopted, they might include TBA, and could take effect next season.
Heavy spending in the recent summer transfer window has intensified worries among some clubs about whether PSR still protects competitive balance, especially as revenues are rising for clubs in the expanded Champions League and Club World Cup.