Introduction

Money shapes football. It decides which players arrive, who stays, and how long a club can push its luck. From the 2026/27 season, the Premier League will use a new set of financial rules that try to control this. These rules use two main ideas: SCR and SSR.

In this blog, we will walk through what they mean. We will stay in simple English. We will look at how the rules work in practice and what they might change for clubs and fans.

What Are SCR and SSR?

Let’s keep this clear.

• SCR stands for Squad Cost Ratio.
• SSR stands for Sustainability and Systemic Resilience.

Both are part of a new financial system. It will apply fully from the 2026/27 season. Until then, the old Profitability and Sustainability Rules (PSR) still matter, but the direction of travel is clear.

Think of it like this:

• SCR looks at how much a club spends on its team compared to what it earns.
• SSR checks if the club as a whole is safe and stable as a business.

So one rule looks at the pitch. The other looks at the balance sheet. Together, they try to stop clubs from spending themselves into trouble.

Understanding SCR & SSR – Premier League’s financial framework for 2026/27

Now let’s go deeper and treat this like tactical analysis. Not of a game, but of money.

The league wants a system that is:

• Clear for clubs.
• Easier to enforce.
• Closer to UEFA rules, so clubs in Europe are not stuck with two very different systems.

SCR and SSR are the tools for that.

How SCR Works: The Squad Cost Ratio

SCR asks one big question:

How much of your football money are you using on the first-team squad?

“Squad cost” includes:

• Player wages.
• Head coach and staff wages.
• Transfer amortisation (the transfer fee spread across the length of the contract).
• Some related bonuses.

“Football-related revenue” includes things like:

• Matchday income.
• TV money and prize money.
• Sponsorships and commercial deals.

The core rule:

• Clubs can spend up to 85% of their football-related revenue on squad costs.

There is also a kind of “headroom” on top. Clubs can go above that limit by a set amount over a few years, but there are conditions. Go too far, and you risk fines or even points deductions.

So in simple terms:

• High revenue = you can spend more, but still within a defined ratio.
• Low revenue = you must be more careful, because your 85% number is smaller.

This is different from the old PSR model, which was based on total losses over several years. Now the focus is on season-by-season spending control.

How SSR Works: Testing Club Health

SSR is about survival. It is less about transfers and more about whether the club can function without collapsing.

It looks at three main areas:

1. Working capital
   • Does the club have enough cash and short-term resources to pay its bills month by month?
2. Liquidity
   • Can the club cover its needs over the next couple of seasons, even if things go a bit wrong?
3. Positive equity
   • Are the club’s assets strong compared to its debts?
   • Over time, the rules tighten, so clubs cannot carry huge debt piles forever.

If a club fails these tests, it may have to show new funding, reduce risk, or face sanctions. This is the financial version of a fitness test. You cannot compete at the top level if your legs are gone.

From PSR to SCR and SSR

Under the old PSR rules, clubs were judged mainly on how much money they lost over a rolling three-year period. There was a fixed limit on allowed losses. If you went over, you risked punishment.

Two main issues came up:

1. Loss-based rules were complex. Clubs could play with accounting tricks, asset sales, or one-off deals to stay inside the limits.
2. It was harder for fans (and sometimes even owners) to see the clear link between revenue, spending, and risk.

The new model shifts focus:

• From “How big are your losses?”
• To “How much of your income are you burning on the squad, and can your business survive?”

That change matters. It encourages clubs to:

• Grow revenue.
• Control wage bills.
• Invest off the pitch in ways that do not wreck the squad cost ratio.

Tactical Implications for Clubs

This is where it starts to feel like tactics. Each club must now plan its financial “game plan” around these ratios and tests.

For big clubs with large global income:

• They will still be able to spend a lot.
• But they cannot let wages and transfer amortisation explode beyond the 85% line for long.
• If they push into the extra headroom, they risk future constraints and possible levies or sanctions.

For smaller clubs with lower revenue:

• They must be extremely precise.
• One or two big wage deals can push them close to the limit.
• They may have to rely more on clever scouting, youth development, and selling at the right time.

Some tactical points:

• Smart clubs will link player wages more tightly to revenue, maybe using bonuses that are sustainable.
• Long contracts will still be used but must be calculated carefully, because amortisation still counts in the ratio.
• Selling players at the right moment becomes even more strategic. Profit from sales will help support future spending.

A simple example.

Imagine a club has football-related revenue of £300 million.

• 85% of that is £255 million.
• That is the basic squad cost limit per season.

If its wages plus amortisation reach £260 million, it is now beyond the main line. It might use some allowed headroom for a while. But it cannot stay there for long without risk.

So every big signing now comes with a clear question:

Does this fit inside our ratio not only this year, but also in two or three years?

What This Means for Fans and the League

For fans, these rules might not feel exciting. They do not score goals. But they shape the transfer window, wage talks, and club strategies.

Possible effects:

• Fewer extreme “all-in” spending sprees, unless the revenue can back it up.
• More focus on revenue growth: global tours, big sponsorships, stadium upgrades.
• More attention to player trading models, like what we see at some data-driven clubs in Europe.

Will it make the league more balanced? That is not guaranteed.

• Big clubs still have bigger revenue, so their 85% number is huge.
• Smaller clubs will always be constrained.

But the rules do try to stop any club, large or small, from spending far beyond what they earn. That should reduce the risk of sudden collapses, points deductions mid-season, or long legal battles.

Conclusion

The phrase we started with describes an important change in English football. The new system built around SCR and SSR will set clear limits on how much clubs spend on their teams and how they manage their finances as a whole.

Instead of simply watching losses, the league will check whether spending fits income and whether clubs are stable businesses.

For owners and directors, this is now a tactical game off the pitch. For fans, it adds a new lens to watch the sport. Transfer rumours and wage reports will sit in a new context: the ratios and tests that shape what is possible.

As the 2026/27 season approaches, this framework will be one of the biggest hidden factors behind every major signing and every long-term squad plan. The football we see on the pitch will be built on how well clubs can play this new financial game.

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