The Premier League clubs have rejected a proposal to introduce a salary cap starting in the 2026/27 season.
During a meeting in London on Friday, November 21, the clubs voted on three options to replace the Profit and Sustainability Rules (PSR).
PSR will be replaced by a new Squad Cost Ratio (SCR) system next season, which received 14 votes in favour and 6 against, just enough to meet the minimum required to officially changed the rule.
Starting next season, Premier League clubs will need to keep their total squad costs including players and manager wages, transfer fees and agents' fees within 85% of their revenue.
While, clubs playing in European competitions must follow UEFA's stricter limit of 70%.
Additionally, rules on long-term financial sustainability were also approved unanimously.
"The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and bring the league's financial system close to Uefa's existing SCR rules," the Premier League statement read.
The statement added, "The other key features of the league's new system include transparent in-season monitoring and sanctions, protection against sporting underperformance, an ability to spend ahead of revenues, strengthened ability to invest off the pitch, and a reduction in complexity by focusing on football costs."
What is the difference between PSR and SCR rules?
The old PSR rules focus on a club's overall financial performance over three years while the new SCR rules focus only on the team's costs for a single season.
