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Why the new 85% cap, 30% “allowance” and UEFA’s 70% ceiling will reshape transfer budgets, wage inflation and how investors value English clubs
The Premier League’s move to an 85% squad‑cost ratio with a 30% rolling allowance is a structural shift in how value is created and constrained in English football, particularly once you overlay UEFA’s 70% cap for clubs in Europe.
Under the new Squad Cost Ratio, player and manager salaries, amortised transfer fees and agents’ fees must sit at or below 85% of club revenue domestically, while clubs in UEFA competitions are simultaneously capped at 70%, replacing Profit & Sustainability’s three‑year loss limits with a seasonal cost‑to‑income test tied directly to revenue growth.