New FFP rules stop Premier League clubs from selling assets to themselves

Premier League clubs will no longer be allowed to sell assets such as hotels or women’s teams to themselves as a loophole to bypass financial regulations, following the approval of new Financial Fair Play (FFP) rules.

According to BBC Sport on Friday, clubs voted in London on a replacement for the Profit and Sustainability Rules, narrowly approving the Squad Cost Ratio system with 14 votes in favour and six against, the minimum required to enact the change.

Overall squad costs from the 2026-27 campaign will have to be limited to 85 per cent of a club’s revenue, although teams competing in Europe will have to adhere to UEFA’s maximum of 70 per cent.

Squad costs comprise player and manager wages, transfer fees, and agents’ fees.

Most notably, it will end the loophole of selling capital assets, like hotels and women’s teams.

Last year, Chelsea sold two hotels to a sister company to keep them compliant with PSR.

In July, Everton sold their women’s team to the parent company, while reports claim Aston Villa have agreed to do the same.

The assessment will only be based on a club’s total earnings from football operations.

Rules around sustainability, which set out a club’s financial spending plans over the medium and long term, were passed unanimously.

But anchoring, which would have placed a top limit on spending based on the money earned by the bottom club, failed to get the necessary support. Twelve voted against it, with seven in favour and one abstaining.

“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 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,” a Premier League statement read.