The English league decides to extend the current Profitability and Sustainability Rules until the end of the 2025/26 season

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Premier League postpones implementation of new financial rules and maintains current ‘fair play’ for one more season

The Premier League has decided to maintain the current Profitability and Sustainability Rules (PSR) for an additional season, delaying the introduction of a new set of financial regulations. This decision was taken during the shareholders' meeting in London, where the clubs agreed that the new rules would not be ready for next season. 

The PSRs, implemented since the 2015-16 season, allow clubs to incur losses of up to £105m over a three-year cycle. The aim of these rules is to prevent overspending and promote financial sustainability in the league. However, some clubs, such as Manchester United, Newcastle United and Aston Villa, have expressed that these regulations limit their ability to spend in the transfer market. 

The proposed replacement, known as the Squad Cost Rules (SCR), seeks to limit clubs‘ spending on player salaries, transfers and agents’ fees to 85% of their revenues, aligning with UEFA's financial sustainability regulations. In addition, the SCR would include an ‘anchor’ feature that would limit clubs' spending in relation to the revenue of the lowest earning club in the league. 

The decision to delay the implementation of the SCR is partly due to current legal challenges. Manchester City has launched a new legal action against the Premier League's Associated Party Transaction (APT) rules, arguing that they are illegal. This dispute has influenced the decision to retain the PSRs for another season. 

In addition, the Professional Footballers' Association (PFA) has threatened legal action if the new regulatory proposals are implemented without proper consultation. These legal problems have led clubs to conclude that more time is needed to develop and agree a suitable replacement system for PSRs.