Squad Cost Ratio (SCR) replaces PSR, giving Everton breathing room this summer.
Revenue from Hill Dickinson directly increases club’s spending cap under the new rules.
Without European football, Everton will avoid UEFA’s strict 70% cap.
Evertonians are probably sick to death of hearing about Profit and Sustainability Rules (PSR). The Premier League’s financial controls have cast a long shadow over the Toffees, placing the club inside an incredibly tight spending straightjacket over recent seasons.
Thankfully, PSR is about to become no more. Although, that doesn’t mean the beginnings of a financial free-for-all. From June 2026, the Premier League is introducing a new system of financial control: The Squad Cost Ratio (SCR)
But what does this mean for Everton? And how well positioned will the club be under the new regime?
SCR vs PSR explained: How the Premier League’s new “real-time” spending cap works
The old PSR system focused on a three-year loss limit of £105m. In contrast, the SCR is a “real-time” spending cap. It limits a club’s total expenditure on wages, agent fees, and transfer amortisation to a specific percentage of its annual revenue.
The 85% rule: Premier League clubs are generally restricted to spending 85% of their revenue on squad costs.
The 70% UEFA cap: For clubs in Europe, the limit drops to 70% to maintain alignment with UEFA’s Financial Sustainability Regulations.
New way to sanction
Unlike the system of brutal points deductions under PSR, the SCR is ushering in a slightly more flexible, tiered approach.
The green threshold (up to 85%): The “Safe Zone” where clubs are fully compliant.
The buffer zone (85% to 115%): If a club overspends within this window, they face financial levies (a “super tax”). The Premier League plans for this to be redistributed other compliant teams.
The red threshold (over 115%): Crossing this line triggers sporting sanctions. Clubs face an automatic six-point deduction, plus an additional one-point penalty for every £6.5m a club spends above the threshold.
The Maguire analysis: How years of austerity primed Everton for the SCR transition
Interviewed on the Royal Blue: The Everton FC Podcast, football finance expert Kieran Maguire recently outlined the ways Everton have changed as they transition from the old PSR system to SCR
He highlighted that years spent trimming salary costs, cutting the size of the squad and limiting transfer spending (which PSR stipulations largely caused) has already moved the club some distance from the dark days of the late-Moshiri era, placing it in a much better position.
The Hill Dickinson Stadium windfall: Unlocking millions in transfer market headroom
On the revenue side, Maguire highlighted the impact the move to Hill Dickinson Stadium will have:
“I think what the accounts for that final season for Goodison show is that the move was absolutely critical towards the future of Everton Football Club if they want to be competing and challenging at the top table”
Experts estimate that Everton could earn as much as an additional £50m a year from the new stadium, considerably outperforming what was achievable at Goodison Park. Because the Premier League links the SCR to revenue, not profit, this improved position could give Everton considerable additional headroom.
The no-Europe advantage: Why lacking continental football benefits the rebuild
As outlined above, as crushing as not qualifying for Europe is for the fans, under the SCR those clubs who, like Everton, do not have European football, have more capacity to spend than clubs who do. The Premier League rules are more generous than UEFA’s, giving Everton an extra 15% going into the summer. Considering the scale of the rebuild still facing the club, that is no small amount.
Conclusion: A new era of financial freedom at the waterfront
The transition from the restrictive PSR framework to the SCR marks a monumental shift for Everton’s summer transfer window. For years, the Blues have operated under a cloud of financial anxiety, handcuffed by rigid spending caps and the constant threat of points deductions. Now, thanks to deliberate squad trimming and the massive commercial windfall expected from the move to the Hill Dickinson Stadium, the financial landscape on the banks of the Mersey looks completely different.
While nobody should expect ‘Man City’ levels of spending, Evertonians can at least look forward to a continuation of the rebuild.