Clubs agree to limit spending on players as part of Premier League PSR reform | first division

Premier League clubs have voted unanimously to adopt rules that will limit spending on players, as part of an overhaul of controversial profitability and sustainability (PSR) rules.

The full overhaul of the PSR rules is ongoing, and officials hope it will be complete by the time of the Premier League's Annual General Meeting in June, but cost control ratios will now, in principle, form the focus of any plan.

Under the proposed controls, clubs in European competitions would be limited to spending 70% of their revenue on player-related costs, which include transfer fees, agent fees and salaries. The other clubs could spend 85%, part of the league's desire not to limit ambition among aspiring teams.

If the league's timeline goes as planned, the new rules will be shadow tested next season before being implemented in 2025-26. A full set of standards based on the cost control ratio will be drafted in the next two months.

The 70% rule is in line with UEFA's cost control mechanisms, which will be fully implemented in 2025-26. The 85% figure had previously been discussed as part of talks with the English Football League over financial redistribution. In March the The Premier League is gone of those negotiations in favor of reforming the PSR first.

The Guardian understands that minor breaches of the new rules could lead to financial penalties, but point deductions will remain the sanction of choice for any serious breaches.

This season, for the first time, Premier League clubs have been subject to sporting sanctions after breaching PSR rules. Everton has been delivered deductions from six and two points for failures in separate time periods, and could face a third failure next season. Nottingham Forest has been four points were deducted and Leicester, Chelsea and Manchester City are in the process of evaluating the alleged breaches.