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The Premier League is set to introduce new legislation ahead of the summer transfer window, with a new amendment proposed by Brighton set to reward 'well-run clubs.'
Squad cost ratio (SCR), will prevent clubs from spending more that 85% of revenue on transfer fees, wages and agent costs.
Brighton proposed an amendment to the rules before the end of 2025, which are set to be passed in time for the upcoming transfer window.
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Premier League pass proposal to new Squad Cost Ratio rules
A detailed view of the golden Lion on the handle of the Premier League Trophy, as the red Premier League ribbons can be seen for Liverpool FC prior to the Premier League match between Liverpool FC and Crystal Palace FC at Anfield on May 25, 2025 in Liverpool, England.
A detailed view of the golden Lion on the handle of the Premier League Trophy, as the red Premier League ribbons can be seen for Liverpool FC prior to the Premier League match between Liverpool FC and Crystal Palace FC at Anfield on May 25, 2025 in Liverpool, England.
The Premier League's current financial rules, Profit and Sustainability (PSR) have come under significant scrutiny for potentially limiting the growth of teams with smaller revenues.
The change to SCR is said to be able to bring the Premier League closer to UEFA rules, where clubs are limited to 70% of their revenue for spending on their squad.
WOLVERHAMPTON, ENGLAND - MAY 10: Brighton owner Tony Bloom during the Premier League match between Wolverhampton Wanderers FC and Brighton & Hove Albion FC at Molineux on May 10, 2025 in Wolverhampton, England. (Photo by Gareth Copley/Getty Images)
WOLVERHAMPTON, ENGLAND - MAY 10: Brighton owner Tony Bloom during the Premier League match between Wolverhampton Wanderers FC and Brighton & Hove Albion FC at Molineux on May 10, 2025 in Wolverhampton, England. (Photo by Gareth Copley/Getty Images)
The amendment was proposed by Brighton as they felt that SCR would penalise them, and other well-run clubs, who never came close to breaching PSR.
Under PSR, the Seagulls would effectively bank headroom to be used at a later date, but they wouldn't have been able to do so under new rules.
New terms that were shared at a shareholders’ meeting on Thursday proposed that clubs who do not use the full 85% allowance for two years straight will be permitted to roll over 10% in the third year, breaching the cap without occurring a fine.
The Guardian reports none of the 20 clubs spoke out about the proposal and it will be ratified by a vote before the end of the season.
Should clubs breach the original cap of 85% without permission, they will be fined by the Premier League and it will be distributed among other clubs. For breaches above 115% a six-point deduction will be given.
Alexis Mac Allister of Brighton & Hove Albion celebrates with teammate Moises Caicedo after the team's victory during the Premier League match between Brighton & Hove Albion and Manchester United at American Express Community Stadium on May 04, 2023 in Brighton, England.
Moises Caicedo and Alexis Mac Allister both left Brighton for large transfer fees
Brighton have been very efficient in the transfer market over the past few seasons. they have adopted an approach of flipping players for considerable profit.
They have signed numerous players for small fees, before selling them on for huge margins, such as Marc Cucurella, Moises Caicedo and Alexis Mac Allister.
The Seagulls take on Liverpool next in the Premier League.