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Premier League Sets 85% Squad-Spend Cap, Unveils New Financial Regime for 2026–27

Clubs rejected a hard ceiling to adopt points penalties under broader revenue definitions.

Overview

  • The new framework replaces Profit and Sustainability with CRP and SRS, introducing season-by-season oversight with a 30% tolerance band and a Red Threshold that escalates to sporting sanctions.
  • Football spend is capped at 85% of football-derived income plus net transfer gains or losses, covering player and head-coach wages, agent fees and transfer costs.
  • Clubs unanimously approved three financial-stability tests focusing on working capital, liquidity and net assets.
  • A proposal for an absolute spending cap set at five times the bottom club’s TV payment—about €625 million—failed after drawing support from only seven clubs.
  • Computable revenue will include non-football stadium income such as concerts, with the league saying the approach aligns more closely with UEFA standards even as analysts question its practical bite at the 85% level.