Leeds United impact as Premier League clubs vote to introduce new financial rules — YEP 21/11/25

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By Lee Sobot

Leeds United are facing a possible landscape change upon Premier League clubs voting to introduce a new set of financial rules.

The Premier League held a shareholders meeting on Friday, at which clubs voted to introduce a new set of financial rules which will come into effect from the start of the 2026/27 season.

The Premier League have said that following extensive consultation, clubs agreed to bring in Squad Cost Ratio (SCR) and Sustainability and Systematic Resilience (SSR) proposals.

There was, though, insufficient support for a proposal on Top to Bottom Anchoring.

Squad Cost Ratio will regulate clubs’ on-pitch spending to 85 per cent of their football revenue and net profit/loss on player sales.

Should Leeds survive their first season back in the Premier League, the club will have a multi-year allowance of 30 per cent that they can use to spend in excess of the 85 per cent.

A statement from the Premier League read: “Following extensive consultation, clubs agreed to bring in Squad Cost Ratio (SCR) and Sustainability and Systematic Resilience (SSR) proposals.

“There was insufficient support for a proposal on Top to Bottom Anchoring.

“SCR will regulate clubs’ on-pitch spending to 85 per cent of their football revenue and net profit/loss on player sales. Clubs will have a multi-year allowance of 30% that they can use to spend in excess of the 85 per cent.

“Utilising this allowance will incur a levy and once the allowance is exhausted, they will need to comply with 85% or face a sporting sanction.

“The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and brings the League’s financial system close to UEFA’s existing SCR rules which operate at a threshold of 70 per cent.

“The other key features of the League’s new system include transparent in-season monitoring and sanctions, protection against sporting underperformance, an ability to spend ahead of revenues, strengthened ability to invest off the pitch, and a reduction in complexity by focusing on football costs.

“The Sustainability and Systemic Resilience rules assess a club’s short, medium and long-term financial health through three tests – Working Capital Test, Liquidity Test and Positive Equity Test.

“Since 2023, the Premier League and our clubs have worked collaboratively to develop the financial controls with the objective of maintaining the League’s value, protecting competitive balance and ensuring clubs operate in a financially sustainable way.

“The process has included extensive consultation at Shareholder level at clubs, as well as senior finance and legal executives, and club working groups. In addition, independent economic and legal analysis was sought.

“As part of the development of the proposed rules, clubs agreed at the Premier League Annual General Meeting in June 2024 to trial SCR and TBA on a non-binding basis. The shadow monitoring of SCR and TBA rules has also continued this season.

“This enabled the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent SCR regulations, and to complete the consultation with all relevant stakeholders including the PFA and football agents.

“To read more on the new financial system, please click here. The full set of rules will be published in Section E of the Premier League Handbook in due course.

“The existing Profitability and Sustainability Rules will remain in place for the remainder of 2025/26.” 

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