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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →“FFP” is a catch-all term, not the name of one current Premier League rule. For seasons from 2026/27, the League’s new Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR) rules replace the Profitability and Sustainability Rules (PSR) for new seasons. PSR can still be enforced for breaches relating to 2025/26 and earlier. Which rule applies depends on the season, the club and the type of financial test involved.
How does Premier League FFP work?
Financial rules constrain different aspects of a club’s finances. Historical PSR assessed adjusted losses over a three-year period. SCR limits specified on-pitch costs against defined revenue and player-sale figures. SSR examines whether a club has the financial resilience to meet its obligations. Associated Party Transaction (APT) rules address transactions involving connected parties and whether certain transactions reflect fair market value.
These systems are not interchangeable. A club can face more than one set of rules: for example, a Premier League club competing in Europe must also meet UEFA’s squad-cost ratio requirements. English clubs’ rules can also depend on their league membership during the period being assessed. “FFP charge” alone therefore does not identify the rule, period or process involved.
What replaced PSR in the Premier League?
| System | What it measures | Period or timing | Threshold or test | Possible response |
|---|---|---|---|---|
| Historical PSR | Adjusted earnings and losses | Usually a three-year period; adjustments varied for some periods, including the COVID-affected seasons | Ordinarily a maximum loss of £105 million, reduced by £22 million for each Championship season in the relevant period | Disciplinary enforcement for a breach; the applicable process and outcome depend on the case |
| SCR | Defined on-pitch squad costs | Seasonal assessments, including a March test and October monitoring | 85% of football-related revenue and net profit or loss from player sales; additional headroom and a Red Threshold also form part of the rules | Further end-of-season assessment may follow; sporting sanctions and, from 2027/28, levies are governed by the rules |
| SSR | Financial resilience, including working capital, liquidity and positive equity | Applies from 2026/27; tests short-, medium- and long-term financial health | Compliance with the League’s working-capital, liquidity and positive-equity tests; a single percentage limit is not stated | A non-compliant club must set out a business plan; measures may include enhanced monitoring, spending limits or League approval to register new contracts |
Sources for the framework and figures: the Premier League’s 2024 historical PSR description and its 2026 explainers on SCR, SSR and the transition. The £105 million PSR figure is the ordinary historical limit, not a universal limit for every club or period. The three-year calculation allowed specified add-backs, including spending on infrastructure, community, women’s football and youth development, as well as depreciation of tangible fixed assets. Relevant COVID-era adjustments mean the calculation was not identical for every season.
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What did the Premier League PSR limit mean?
Under the historical PSR framework, the ordinary upper loss threshold was £105 million across the relevant three-year period. For each season a club spent in the Championship within that period, the threshold fell by £22 million. The rules assessed adjusted earnings, not simply the headline loss in a set of accounts: specified costs could be excluded through permitted add-backs.
Those figures describe the ordinary historical framework, not the new SCR test. PSR stopped applying to new Premier League seasons from 2026/27, but the League retained the ability to pursue breaches relating to 2025/26 and earlier. A rule change therefore does not automatically close an investigation or remove the possibility of a later sanction for an earlier period.
How does the new SCR limit work?
Which costs count
SCR measures player and head-coach wages, agents’ fees, and transfer-fee amortisation or impairment against football-related revenue and net profit or loss from player sales. It is a defined squad-cost calculation, not a test of a club’s overall three-year losses.
What the 85% threshold does—and does not—mean
The Premier League’s SCR threshold is 85%. The rules also include additional headroom above a Green Threshold, subject to a Red Threshold, an allowance, and levy and sanction provisions. The League describes seasonal testing, with a March assessment after the winter transfer window and monitoring in October. If a club exceeds the 85% threshold, further end-of-season assessments may follow.
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Crossing 85% alone does not mean an automatic points deduction. The League says SCR-related sporting sanctions are imposed in the season of breach; levies for over-threshold seasons are determined after the season ends. Levies apply only to breaches from 2027/28 onwards. The rules’ thresholds, headroom and assessment process matter when judging a club’s exposure.
How UEFA rules fit
Clubs competing in UEFA competitions must also comply with UEFA’s 70% squad-cost ratio. The Premier League threshold is 85%, so a club in Europe may face both systems and the UEFA limit may be the stricter one. The 70% figure applies to clubs competing in UEFA competitions; it is not the Premier League’s SCR threshold.
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What does SSR check?
SSR, which applies from 2026/27, focuses on whether a club is financially resilient across the short, medium and long term. The Premier League identifies working capital, liquidity and positive equity as the relevant tests. This is different from asking whether a club’s squad costs fall within SCR or whether its adjusted losses complied with historical PSR.
If a club does not comply, it must provide a business plan to return to compliance. The League says possible measures include enhanced monitoring, spending limits and requiring its approval before the club registers new contracts. These are possible responses, not a published finding that any particular club has failed an SSR test.
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Associated Party Transaction rules concern transactions involving parties connected to a club’s ownership, as well as certain transactions that meet a threshold. The Premier League requires associated-party transactions to be submitted for fair-market-value assessment. It also reviews qualifying transactions with non-associated parties to determine whether they are effectively associated-party transactions or are not at arm’s length.
APT is not the PSR loss limit or the SCR ratio. In September 2025, the League said Manchester City accepted the then-current APT rules as valid and binding in a settlement that ended the club’s arbitration. That statement concerns the rules and settlement at that time; it is not itself a finding about a PSR, SCR or SSR breach.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Which clubs could face punishment?
Public evidence does not support a complete ranking of clubs “at risk.” The Premier League says disciplinary proceedings are generally confidential, and the available official information does not disclose every club’s private SCR or SSR monitoring status. It is safer to distinguish a reported investigation, a formal charge, a finding, an appeal and a confirmed sanction rather than infer risk from a club’s spending or league position.
Manchester City: Commission findings reported, outcome not established here
In a statement published on 29 September 2026, the Premier League said an independent Commission found Manchester City guilty of all charges concerning serious financial-rule breaches over nine seasons, and of most charges concerning failure to cooperate. The League reported that the Commission found sham arrangements had inflated revenue and reduced costs by more than £900 million across the affected period, leading to misstated accounts and inaccurate financial reporting. These are the Commission’s findings as reported by the League, not independent verification in this article.
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The League said the sanction would be considered at a separate confidential hearing and that City had until 2 October 2026 to appeal. The official statement available by the research cut-off, 8 October 2026, does not establish whether an appeal was filed after that deadline or whether a final sanction was issued. The outcome should therefore not be described as settled. The League lists fines, points deductions and other sporting sanctions among the possible Commission sanctions generally; that list does not establish which, if any, will apply to City.
Leicester City: an EFL P&S case for a period ending in 2024
The published Appeal Board decision describes Leicester City’s case as concerning EFL Profitability and Sustainability rules for the three-year period ending 30 June 2024. The investigation and prosecution transferred to the Premier League after Leicester’s promotion. The decision records an excess of approximately £20.8 million over the applicable upper loss threshold, along with disclosure breaches. This is not a new 2026/27 Premier League PSR charge.
Everton: a historical PSR example
The Premier League’s 2024 statement said Everton admitted a PSR breach for the period ending in 2021/22. An independent Commission imposed a 10-point deduction, which an Appeal Board reduced to six. This illustrates that an appeal can change a sanction; it does not establish that Everton is currently at risk of a breach.
Can clubs be punished after PSR changed?
Yes. The transition ended PSR for new seasons from 2026/27, but the Premier League retained authority to investigate and enforce breaches relating to 2025/26 and earlier seasons. A proceeding about an older reporting period can therefore continue under the rules applicable to that period even while SCR and SSR govern new seasons.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallWhen assessing a report of a possible penalty, check four things: the rule named, the period covered, whether the information is an allegation or a Commission finding, and whether an appeal or final sanction has been confirmed. A headline using “FFP” may leave all four unclear.
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