Premier League clubs have agreed to trial an alternative financial system resembling a spending cap for the 2024-25 season.
The Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) will operate alongside the existing Profitability and Sustainability Rules (PSR) on a “non-binding basis.”
Top-flight clubs have struggled with the PSR this season, resulting in points deductions for Nottingham Forest and Everton due to breaches.
Under the new system, teams will be allowed to spend no more than 85% of their total revenues on their squads.
The TBA is an anchoring model based on the earnings of the bottom club, designed to protect the competitive balance of the Premier League.
The decision was made at the Premier League’s AGM on Thursday, where clubs also voted to continue using video assistant referees (VAR).