The Finance Guy

The aim of SCR is to provide a more competitive playing field for all Premier League clubs. In theory it should prevent clubs with the richest owners from hoarding too many players, without compromising clubs who want to invest in stadium and training infrastructure amongst other organisational improvements. There is also a multi-year rolling allowance of 30% above the 85% limit. Clubs must submit estimated revenues and costs to the Premier League at the start of the season, with compliance assessed in March based on those figures. Spending must be at a maximum of 85%, with a six-point deduction for clubs that go over that threshold and a further point deducted for £6.5 million spent over the 115%.

Profit and Sustainability Rules. The Premier League's previous financial regulations that limited how much clubs can lose over a rolling three-year period - £105 million. Clubs that broke the rules faced points deductions, as Everton and Nottingham Forest found out in 2023-24. The rules were meant to stop clubs spending recklessly on transfers and wages, but critics pointed out they punished promoted clubs and favoured established big six sides who generate more commercial revenue and therefore found it easier to meet targets. A new system of regulations, Squad Cost Ratio (SCR) came into force for the 2026-2027 season.

Spreading the cost of a transfer fee across the length of the player's contract for accounting purposes. A £100m signing on a 5-year deal costs £20m per year on the books, not £100m upfront. It matters for Financial Fair Play and profit/loss calculations. Clubs use it to make expensive signings look more affordable. Understanding amortisation explains a lot of weird transfer behaviour.

The money paid to agents for facilitating transfers for players between clubs or contract renewals at their current club. Agent fees can be enormous - sometimes tens of millions for a single deal. Agents get paid by clubs, players, or both. The fees have grown so large that clubs and FIFA have tried to regulate them. Super-agents like Jorge Mendes and the late Mino Raiola built empires on these commissions.