Conclusion: PSR out. SCR in.
Clubs who voted against it (but lost): Bournemouth, Brentford, Brighton & Hove Albion, Crystal Palace, Fulham and Leeds United.
So, from the start of next season, PSR and its “good” spending carve-outs, rolling accounting periods and upper loss thresholds are dead; long live the squad cost ratio (SCR) and its green and red thresholds, accounts confirmation tests and feedback loops.
Confused? Don’t worry, you are a long way from being the only one and we probably have another decade to get as familiar with SCR’s loopholes, quirks and unintended consequences as we are now with PSR’s.
In a nutshell, instead of trying to stop clubs from losing too much money every season, the league will now try to limit how much money they can spend on the product they put out on the pitch. This means clubs will be encouraged to spend only 85 per cent of their football-related revenues (money generated by their broadcast, commercial, matchday and player-trading activities) on the wages of their first-team coaches and players, amortised transfer costs and agents fees.
Confusingly, they will actually be allowed to spend up to 115 per cent on this stuff in a single season but it will cost them a luxury tax-style levy, which will be calculated according to how far over 85 per cent they go and then shared equally among those clubs that stay below the lower threshold.
If they bust 115 per cent, it will cost them points.
