The 2026-27 season marks the permanent implementation of squad-cost ratio (SCR) rules, replacing previous profit and sustainability rules (PSR). SCR regulations aim to prevent clubs from accruing unmanageable losses and stop wealthy owners from injecting endless funds that do not count as seasonal revenue.

Under these rules, clubs qualifying for Europe must follow a 70% SCR cap. Domestic-only clubs are capped at 85% of total revenue but can utilize a multi-year rolling allowance of 30%, effectively allowing spending up to 115%.

Exceeding the 85% limit without using the allowance results in financial penalties. However, exceeding both the 85% limit and the 30% allowance triggers a fixed six-point deduction, increasing by one point for every £6.5m spent over the limit. These changes were approved alongside sustainability and systemic resilience (SSR) regulations to ensure long-term financial health.