Clubs agree at AGM to trial an alternative League-wide financial system next season on a non-binding basis

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.

Independent Appeal Board decision on Nottingham Forest

An independent Appeal Board has upheld the decision of a Commission to deduct four points from Nottingham Forest following an admitted breach of the Premier League’s Profitability and Sustainability Rules (PSR).

The PSR sanction applied to the assessment period ending Season 2022/23 and was appealed by the club on two grounds. The club argued that the independent Commission committed an error in not treating its sale of a high-profile player shortly after the assessment period as a mitigating factor, and that it committed a further error in electing not to suspend some or all of the points deduction it imposed. Each of these grounds was rejected by the Appeal Board, which found the independent Commission was entitled to immediately impose the sanction it did. The four-point deduction will therefore remain in place.

Click here to read the independent Appeal Board’s full written reasons.

Appeal Boards are independent of the Premier League and member clubs. The Appeal Board in this case comprised of the Rt Hon Lord Dyson (chair), David Phillps KC and Daniel Alexander KC, each of whom was appointed by the independent Chair of the Premier League Judicial Panel.