Premier League Introduces New Rule Blocking Clubs From Selling Assets to Themselves

The Premier League has approved a major financial reform that will prevent clubs from selling assets to themselves or to related companies in an attempt to evade spending restrictions.

The decision, endorsed by a clear majority of club owners at a shareholders’ meeting, signals one of the strongest crackdowns yet on loopholes within English football’s financial control system.

Under the new framework, known as the Squad Cost Ratio (SCR), clubs will no longer be allowed to count profits from internal asset sales — such as hotels, training facilities or even women’s teams sold to affiliated entities — as part of their revenue. These transactions had, in recent seasons, been used by clubs to artificially boost their books and stay compliant with spending rules.

This shift comes after high-profile examples, including Chelsea’s sale of two on-site hotels to a sister company and Everton’s sale of their women’s team to a parent firm, both of which significantly improved their Profitability and Sustainability Rules (PSR) position through accounting gains.

The Premier League said such practices undermined the integrity of its financial system.

The new SCR system will cap club spending on wages and transfers at 85% of football-related income plus net player-sale profits. Clubs that exceed the limit risk fines, while those breaching the upper “red threshold” of 115% could face sporting sanctions such as point deductions.

League officials said the reform follows extensive consultation and aligns English football more closely with UEFA’s financial regulations.

The intent is to ensure that clubs operate within their “real” revenue levels rather than exploiting accounting mechanisms to mask overspending.

The measures will take effect next season, giving clubs a brief window to adjust their financial planning. Analysts say the rule could significantly reshape how some teams manage assets and structure their finances, especially those that have previously relied heavily on intra-group transactions.

The Premier League maintains that the tougher approach is essential to restoring financial fairness, increasing transparency and ensuring long-term sustainability across the division.