Financial Fair Play / Profit & Sustainability

[The Larch]

1 hour ago, 1881 said:

A question for those who understand these things better than me but possibly no-one knows for sure.

 

Under the new SCR rules the checks are done on a seasonal basis therefore any money we made from the Champions League is irrelevant in terms of next season”s available expenditure. In reality we probably needed it to satisfy this year’s PSR rules.

 

The rules regarding player sales are also changing so that the profit is split over the year the sale was made and the following two seasons. The question is during 2026/27 will we get a third of the profits we made from sales profits during 2025/26 and 2024/25. In other words is there some form of transition?

 

Which leads to the Alexander Gordon sale which I believe is going through officially in June. Will this count as taking place in 2026/27 and under the new rules? Of course we may have rushed the sale through to satisfy this year’s PSR rules if we overestimated how much income we would generate.

 

It would also appear that the new way of treating profits from sales is going to have a major negative impact on clubs which rely heavily on income from player sales (ie all but Big 6) as when they sell one of their best players they can only reinvest a third of that money in new players in that season. Just adds to the whole cartel con.

 

 

 

 

 

I've asked this a few times myself and tried to look it up too...but couldn't get anything definite. 

 

I think you're right though- spreading sales over 3 years, but purchases over (upto) 5 years, means that you cant reinvest your full sales proceeds because youre going to have a gap to fill in years 4 and 5.

 

As you say, it royally screws over teams with lower revenues.

 

The only way around it would be to amortise your corresponding purchases over 3 years instead of a maximum of 5, so that it matches the sales spread....but im not sure if thats allowed in the rules, because I think they say it needs to be spread over the contract (upto a max of 5 years).

[Colos Short and Curlies]

There's a nuance to comparing the sales treatment under PSR and SCR.

 

Yes you now spread the sale profit over 3 years but you calculate the SCR ratio each year in isolation.

 

Under PSR whilst you took the full sale profit in year one you did in effect carry it forward 3 years as you had a rolling 3 year PSR window to manage so you had the full profit impacting the same 3 years as you would do under SCR.

 

I'm assuming that for the 26/27 SCR calc we will have 1/3 of sale profits from 24/25, 25/26 and 26/26 with a third of the Isak sale also counting towards 27/28

[1881]

1 hour ago, Colos Short and Curlies said:

There's a nuance to comparing the sales treatment under PSR and SCR.

 

Yes you now spread the sale profit over 3 years but you calculate the SCR ratio each year in isolation.

 

Under PSR whilst you took the full sale profit in year one you did in effect carry it forward 3 years as you had a rolling 3 year PSR window to manage so you had the full profit impacting the same 3 years as you would do under SCR.

 

I'm assuming that for the 26/27 SCR calc we will have 1/3 of sale profits from 24/25, 25/26 and 26/26 with a third of the Isak sale also counting towards 27/28

That makes sense but I assume clubs will still lose out because you lose the three-year flexibility you had over when you spent the money you accumulated from sales.

 

But I guess the main issue is that under PSR an owner could potentially pump in £35m a year to aid transfers/wages but they can no longer do this under SCR as it all has to come from income now?

 

 

 

 

Edited Monday at 11:11 by 1881

[The College Dropout]

1 hour ago, The Larch said:

I've asked this a few times myself and tried to look it up too...but couldn't get anything definite. 

 

I think you're right though- spreading sales over 3 years, but purchases over (upto) 5 years, means that you cant reinvest your full sales proceeds because youre going to have a gap to fill in years 4 and 5.

 

As you say, it royally screws over teams with lower revenues.

 

The only way around it would be to amortise your corresponding purchases over 3 years instead of a maximum of 5, so that it matches the sales spread....but im not sure if thats allowed in the rules, because I think they say it needs to be spread over the contract (upto a max of 5 years).

You can sign a player on a 3 year deal and then have options to extend to take it to 5 without a renewal.  

[The Larch]

54 minutes ago, The College Dropout said:

You can sign a player on a 3 year deal and then have options to extend to take it to 5 without a renewal.  

Ahh ok...thats a neat way of getting around it then 

[1881]

I emailed Paul Quinn this morning who is the man behind the excellent theesk.org 
and he confirmed that (a third of) transfer profits from 2024/25 and 2025/26 will be included for SCR purposes in 2026/27.

 

His latest article on SCR is here: https://theesk.org/2026/05/16/the-analysis-series-the-new-and-existing-squad-cost-ratio-and-sustainability-and-systemic-resilience-rules/

he did a couple of other articles before

 

https://theesk.org/2026/05/16/the-analysis-series-the-new-and-existing-squad-cost-ratio-and-sustainability-and-systemic-resilience-rules/

https://theesk.org/2026/05/17/the-analysis-series-the-new-and-existing-squad-cost-ratio-and-sustainability-and-systemic-resilience-rules-part-ii/

 

 

Edited Monday at 12:59 by 1881