Premier League clubs, including [West Ham United](https://www.claretandhugh.info/west-hams-psr-troubles-given-a-huge-boost/), have agreed in principle to amend their new spending rules before they are introduced next season to give clubs greater flexibility in the transfer market.
Under the new squad cost ratio (SCR) rules approved last November, clubs will be restricted to spending 85% of their revenue on player costs, with a levy payable to the Premier League, for distribution among the other clubs in the event of a breach. A six-point deduction would be automatically imposed if a club’s spending reached 115% of revenue.
Under the terms of an amendment introduced at a shareholders’ meeting by Brighton earlier this month, clubs that do not spend their 85% allowance for two seasons will be permitted to rollover up to 10% in the third year, enabling them to breach the cap without incurring a fine.
If, for example, West Ham survives relegation and spent 80% of revenue on transfers, player wages and agent fees for two successive years, they would be free to spend 95% in the third year.
All 20 clubs seem to be in favour of the amendment, and it is expected to be formally approved before the end of the season.
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The Premier League clubs are not due to meet again until their AGM in June.
With a turnover of £227m last season for West Ham, 85% would equate to just under £193m – if West Ham avoids relegation.
With players’ wages estimated at around 75% of the total £176m wage bill (£132m), amortisation of £99m and agent fees of £19m, the total £250m is way above the £193m allowed, and West Ham would need to rely on a three-year allowance of 30% to keep within the new limits.