Sunderland have published the minutes from their latest meeting with the supporter collective
Bruce confirmed at the recent meeting that the club had voted in favour of the move from PSR to Squad Cost Ratio rules, which will come into force ahead of the 2026/27 campaign. Whereas PSR operated by limited the total losses clubs could make over a three-year period, SCR works in real time. Clubs will instead be limited to spending 85% of their projected revenues, which will be agreed in advance with the Premier League, on first-team squad costs.
While some clubs outside the 'big six' oppose the change, Bruce told fan groups present Sunderland believe it will keep the Premier League competitive and believe it a positive that it enables clubs to spend more freely on infrastructure. The club's latest set of accounts are due to be published next month, covering the 2024/25 campaign. They are expected to show a strong performance, as they will not include the bulk of last summer's transfer spend but will include the sales of Tommy Watson, Jobe Bellingham and Jack Clarke. Bruce did say, however, that those sales will be offset in part by the significant bonus payments that followed promotion back to the Premier League. Bruce said the club's financial position is 'positive' and that underlining revenue is 'strong'.
The minutes from the meeting read: "The 2025 Club accounts are due to be published shortly and can be discussed at the next meeting. However, the Club is in a healthy financial position. £10+million was invested in stadium infrastructure and improvements in the summer, and there was considerable squad investment. There has also been investment in staffing and resourcing to compete in the Premier League, particularly in the commercial department. Operating expenses in last year's figures are unusually high, due to bonus payments on promotion.
"Player trading has been good, noting the sales of Jobe Bellingham and Tommy Watson, and the Club is well positioned with respect to PSR. The trend is positive, underlining revenue is strong, and costs are well-managed, ensuring the team will be able to continue to compete on the pitch (DB).
"At the recent Premier League shareholder meeting, Sunderland voted in favour of the introduction of Squad Cost Ratio (SCR) as the new financial control mechanism in place. It is different from PSR, which assesses losses over 3 years, with SCR focusing on driving revenue and the cost of your squad. SCR works in real time rather than retrospectively. Aligning with UEFA, the Club believe it will help competitive balance, which keeps the Premier League strong, and encourages investment off the pitch, in facilities and infrastructure. Sunderland AFC is well positioned for the last year of PSR and for SCR when introduced (DB)."
Elsewhere in the meeting, it was confirmed that the club had applied for an exemption from the Premier League to keey away fans housed in the North Stand Upper for the foreseeable future. You can read the full story here.
SCR rules - the key changes explained
Whereas PSR limited clubs to a £105-million loss over a three-year period, the SCR rules will instead apply on a season-by-season basis and will apply specifically to club's spending on their first team. The new rules will limit clubs to spending 85% of their revenue on squad costs, which the Premier League say will simplify the system and allow 'all clubs to aspire to greater success'. Clubs currently participating in European competitions are already following these rules, as UEFA imposes a 70% ratio on teams.
There will be some additional wriggle room for clubs under the Premier League rules, as well. The Premier League have confirmed that clubs will have a 'multi-year allowance' of 30%, though clubs who use it will incur a levy. Clubs who are then not within the 85% after this point will face a sporting sanction.
"SCR will regulate clubs’ on-pitch spending to 85 per cent of their football revenue and net profit/loss on player sales", a statement from the Premier League said.
"Clubs will have a multi-year allowance of 30% that they can use to spend in excess of the 85 per cent. Utilising this allowance will incur a levy and once the allowance is exhausted, they will need to comply with 85% or face a sporting sanction.
"The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and brings the League’s financial system close to UEFA’s existing SCR rules which operate at a threshold of 70 per cent. The other key features of the League’s new system include transparent in-season monitoring and sanctions, protection against sporting underperformance, an ability to spend ahead of revenues, strengthened ability to invest off the pitch, and a reduction in complexity by focusing on football costs.”
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