Premier League introduces Squad Cost Ratio affecting Everton's spending

Starting next season, the Premier League will implement a Squad Cost Ratio (SCR) model for financial regulation, shifting from the previous Profit and Sustainability Rules. This new framework measures player-related spending against football-related revenue, capping allowable expenditures at 85% of total revenue for Premier League clubs and 70% for teams in European competitions. Everton, having faced financial issues under the previous rules, is expected to monitor its spending closely. The Compliance Test for clubs is scheduled for March, aligning with their financial reporting. Clubs exceeding spending thresholds could face financial penalties or sporting sanctions depending on the degree of breach.

• 9:25 AMYahoo Sports — Squad Cost Ratio and how it could impact Everton