Premier League CEO Richard Masters has revealed that they will soon decide on the fate of the divisive PSR and might introduce a new squad-cost ratio system. Introduced in the 2015/16 season, the PSR has often been criticised by clubs like Manchester City, Newcastle United and Aston Villa for limiting their ability to spend in the transfer market.
Speaking at the Leaders sports conference, Masters said: “We are talking to our clubs about an alternative system. That’s not to say we don’t think the PSR system works. It’s about closer alignment with European regulation, which is 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.”
Masters added: “In UEFA, it’s now set at 70 per cent. Our system will be 85 per cent because we always want our clubs to have the ability to invest. So when you compare the Premier League system at 85 percent, 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.”
Initially, the Premier League wanted to put the new rules in place for the 2025-26 campaign, however, all 20 top-flight clubs will meet in November to vote on implementing the new system.
