Manchester United will have to comply with the Premier League's new financial regulations starting next season, as the league prepares to implement the "Squad Cost Ratio" (SCR) system with some adjustments compared to the current mechanism.
According to The Guardian, the Premier League will cap club spending at 85% of total revenue. This figure includes major player-related expenditures such as transfer fees, salaries, and agent fees.
If Manchester United exceeds the 85% threshold, they will have to pay a financial penalty, and this money will be redistributed to other clubs. However, if spending reaches 115% of revenue, the club will face a mandatory deduction of 6 points on the league table.
A notable newly proposed amendment allows clubs with good financial management to "carry over" unused budget portions to the third season. This mechanism, called the "levy offset," provides greater flexibility for clubs that consistently spend below the permitted limit.
Specifically, if Manchester United uses only 80% of revenue for two consecutive seasons, they can raise their spending level to up to 95% in the third season. This helps clubs avoid being "penalized" for saving budget to prepare for a major future transfer window.
Brighton is the club that pushed for this change proposal, aiming to ensure clubs with stable financial foundations are not disadvantaged compared to clubs that always spend near the ceiling. The new adjustment prevents clubs from being punished for their efficiency in financial management.
The maximum carry-over amount is capped at 10% to maintain balance with clubs participating in UEFA competitions, where stricter regulations with a 70% spending cap are applied. The Premier League wants to ensure domestic rules do not create an unfair advantage.
This proposal did not face any opposition in the most recent shareholders' meeting and is expected to be formally approved soon via remote voting. Clubs hope the regulations are finalized early before the summer transfer window opens to have clear plans.
Additionally, another important decision is maintaining the £30 cap for away tickets until the end of the 2027/28 season. This policy has contributed to increasing the away fan attendance rate from 82% to 91% since its implementation in 2016.