Premier League Poised for Financial Overhaul with New Squad-Cost Ratio System

The Premier League is on the brink of a significant financial transformation as it mulls over abandoning its Profit and Sustainability Rules. Richard Masters, the CEO, revealed at the Leaders sports conference that a new squad-cost ratio system is under discussion, potentially reshaping the financial landscape of English football.

In place since the 2015-16 season, the existing financial regulations have faced criticism for restricting club spending. Notable teams such as Manchester City and Newcastle United have voiced concerns over these limitations. Masters hinted that the new system would align closer with UEFA's financial framework, introducing a spending cap of 85% compared to UEFA's 70%, thereby encouraging greater investment.

The proposed reforms will be voted on by Premier League clubs next month. A move towards this new system could further cement the Premier League's position as the world's most profitable soccer league, enhancing its competitive edge while maintaining the influx of international capital.

(With inputs from agencies.)