PSR was about a club’s balance sheet of all revenues over a three-year period, while SCR is just about team costs on a seasonal basis.

Several clubs, in healthy financial positions, were happy with PSR and wanted to keep the status quo.

Bournemouth, Brentford, Brighton, Crystal Palace, Fulham and Leeds voted against the change.

The new rules will operate a dual system, with clubs in European competition having to adhere to Uefa’s SCR limit of 70% – so a club could be sanctioned by Uefa but be compliant in the Premier League.

The higher limit is intended to protect the Premier League’s competitive balance, given the increased income that will be received by those clubs competing in Europe.

Chelsea and Aston Villa were both given heavy fines by Uefa for breaches in the 2024-25 campaign, and that’s when the limit in Europe was 80%.

The Premier League has added some wriggle room, too, with a multi-year rolling allowance of 30% that permits clubs to spend beyond the limit. It allows clubs to invest ahead of revenue and variance or sporting underperformance.

An assessment is made each March, and the allowance is crucial to determine possible sporting sanctions applied in the same season.

The 85% marker is known as the Green Threshold. Spend above that and you get a financial penalty, although this will be far less punitive than Uefa.

The Red Threshold is 85% plus the allowance. Go beyond that, and it’s a fixed six-point deduction which increases by one point for every £6.5m spent over the Red Threshold.

Think of it this way. Every club will start next season on 85% + 30% allowance, so effectively 115%.

Any clubs that spend above 85% will face a fine, but they would need to be in excess of 115% lose points.

But those percentages will change for 2027-28.

If a club spends 105% on their squad next season, it means they have used 20% of their allowance, and for 2027-28 their maximum spend before potential sporting sanction is 95%.

If a club spend less that 85%, they can increase the allowance again to the maximum of 30%.