Premier League announce changes for 2024/25 - New financial system set for trial

Following today's AGM, Premier League clubs have agreed to trial a new financial system over the 2024/25 season on a non-binding basis.

The Premier League have announced that Profitability and Sustainability Rules (PSR) will remain over the coming season, but clubs will now use Squad Cost Rules (SCR) and Top to Bottom Anchoring (TBA) on a temporary basis before it's decided whether these will be implemented permanently or not.

SCR will regulate spending (on incoming signings) to 85% of a club’s football revenue and net profit/loss on player sales, while TBA is "a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season." The Premier League are yet to disclose the anchoring multiple, but it's been suggested that this will be x5.

See the Premier League statement in full below, which confirms the new financial system set to be trialed next season:

"At the Premier League’s Annual General Meeting today, clubs agreed to trial an alternative League-wide financial system next season (2024/25) 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 per cent) 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."