Richard Masters says PSR works but new system will align closer with Uefa’s own regulations
Premier League chief executive Richard Masters has confirmed it is planning to abandon its profit and sustainability rules (PSR) and adopt a new financial model.
PSR has been in place since the 2015-16 season and allows clubs to lose no more than £105m over a three-year period. But it has become increasingly contentious as some clubs argue it restricts investment.
The new financial rules will involve a “squad cost ratio” (SCR), with clubs allowed to spend up to 85 per cent of their revenue on transfers, wages and agent fees. If voted, the rules could take effect as early as next season.
Masters confirmed the league is aiming to operate closer to Uefa’s financial sustainability rules.
“We are talking to our clubs about an alternative system,” said Masters. “That’s not to say we don’t think the PSR system works. It’s about closer alignment with European regulation, which is squad cost ratio, which is a revenue test.
“The PSR is a look-back profitability test and has its own strengths and weaknesses. No system will be perfect.
“We have to keep these things balanced and continue the conversation with our clubs, and that’s an important decision, so we should take the time to get it right. But that decision is coming up.”
The draft proposals for the new rules were discussed at a Premier League shareholders’ meeting in September. They will be discussed again at the next meeting in November, when a formal vote by the clubs is expected.
“In Uefa, it’s now set at 70 per cent,” said Master. “Our system will be 85 per cent because we always want our clubs to have the ability to invest.
“So when you compare the Premier League system at 85 per cent, if it happens, and you look at the other big European leagues, we have a more permissive system, too permissive some might say.
“The Premier League has been built on the back of investment in which international capital flows (are) coming in. We don’t want that to be to be stifled off.”
