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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallThe Premier League’s Profitability and Sustainability Rules (PSR) limited how much a club could lose over a rolling three-year assessment period. They measured adjusted earnings before tax—not transfer spending alone—and the standard permitted loss was £105 million, reduced for seasons spent in the Championship. PSR stopped applying to new seasons from 2026/27, when the League introduced replacement rules, though it can still investigate earlier periods.
What did PSR measure?
PSR compared a club’s combined adjusted earnings before tax over three seasons with its permitted loss threshold. It was a loss-control system, not a simple cap on transfer spending.
Adjusted earnings before tax meant profit or loss after depreciation and interest, but before tax, with specified costs added back. The Premier League identified eligible add-backs including investment in infrastructure, community work, women’s football, youth development, and depreciation of tangible fixed assets. Covid-related costs were also exceptionally eligible for the 2019/20, 2020/21 and 2021/22 seasons.
How did the £105 million limit work?
The standard maximum loss across the relevant assessment period was £105 million. For every season a club spent in the Championship within that period, the permitted threshold fell by £22 million.
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| Figure | Meaning |
|---|---|
| £105 million | Standard maximum loss over the relevant PSR assessment period, according to the Premier League’s 2024 explanation. |
| £22 million | Reduction to the threshold for each Championship season in the period, according to the Premier League’s 2024 explanation. |
| £61 million | Nottingham Forest’s reduced threshold for the period ending in 2022/23, after two Championship seasons, as cited by the Premier League. |
That Championship adjustment reflected clubs’ lower allowable loss threshold while outside the Premier League. The applicable limit therefore depended on the seasons included in a club’s assessment period, rather than being identical for every club.
How were the three seasons combined?
Normally, the calculation combined the adjusted earnings before tax figures for three seasons. Covid-era amendments changed how the 2019/20 and 2020/21 figures were treated: those two seasons were averaged in relevant assessment periods. The exact calculation consequently depended on the accounting period and rules applicable to that case.
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What happened if a club was suspected of breaching PSR?
- The Premier League Board could investigate a suspected breach and issue a complaint referring the matter to an independent Commission.
- The Commission decided whether the club had breached the rules and, if so, what sanction was appropriate.
- Possible outcomes included a fine, points deduction, or another sporting sanction. Decisions could be challenged under the League Rules.
Everton’s case for the period ending in 2021/22 illustrates the potential sporting impact: its initial 10-point deduction was reduced to six points on appeal.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What replaced PSR, and does it still matter?
The Premier League says PSR remained in force for the remainder of 2025/26 and stopped applying to new seasons at the start of 2026/27. The League’s 21 July 2026 explainer says Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR) took over. The League can still investigate and enforce PSR matters concerning 2025/26 and earlier seasons.
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| System | What it focuses on | Time frame or structure |
|---|---|---|
| PSR | Aggregate adjusted profit or loss. | Rolling three-year assessment. |
| SCR | On-pitch costs, measured against football-related revenue and net profit or loss from player sales; additional rules and headroom also apply. | Season-based tests. |
| SSR | Financial resilience across short-, medium- and long-term health. | Three financial-resilience tests. |
For the 2026/27 season, PSR is best understood as the former loss-based system, not the current rules for new seasons.
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