Richard Masters: New Cost-Control Rules May Replace PSR In Premier League

‎Premier League CEO, Richard Masters, revealed on Thursday that clubs will soon vote on whether to scrap profit and sustainability rules in favour of a new squad-cost ratio system.

‎The current PSR framework was introduced in 2015-16 to curb overspending and promote financial responsibility.

‎However, it has triggered several breaches by clubs in recent seasons. The rules have also faced strong criticism from the likes of Manchester City, Newcastle United, and Aston Villa, who argue they restrict investment and competitiveness.

‎Masters said a new system would align more with UEFA’s financial regulations, which cap a club’s spending on player wages, transfers, and agents’ fees at 70% of their revenue.

‎However, the Premier League would have a higher cap of 85%.

‎”We are talking to our clubs about an alternative system. That’s not to say we don’t think the PSR system works,” Masters told an audience at the Leaders sports conference.

‎”It’s about closer alignment with European regulation, which is the 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.”

‎England’s top-flight remains the world’s most lucrative league, with domestic broadcast rights alone totaling £6.7 billion ($9.03 billion) for the 2025–2029 cycle.

‎Masters noted that the proposed higher spending cap would enable Premier League clubs to sustain their competitive edge.

‎”In UEFA… It’s now set at 70%. Our system will be 85% because we always want our clubs to have the ability to invest,” he added.

‎”So when you compare the Premier League system at 85%, 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 stifled.”

‎The new rules, which were intended to take effect this season, will be put to a vote by Premier League clubs next month.