| EFL 'Squad Cost Rules' for 2026-2027 season... 19:04 - May 25 with 2925 views | 1885_SFC |
The English Football League has announced the implementation of Squad Cost Rules for the 2026-27 season. The finer details are still to be published, but essentially clubs will be allowed to spend 85% of their income.
Anyone know how this will effect Saints? I've no idea what we currently spend. |  |
| |  |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 19:11 - May 25 with 2876 views | kernow |
I’ve no idea but I hope we have or hire creative accountants. |  | | |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 19:25 - May 25 with 2850 views | HytheFerrytales |
I think our ratio of salaries to revenue is around 75 % which is relatively high for the Championship but ,unsurprisingly pales into insignificance with PL numbers. | | | |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 19:31 - May 25 with 2843 views | HytheFerrytales |
It will likely spike above 90% next season as revenues will probably dip (even without Spygate) due to reduced parachute money. | | | |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 20:41 - May 25 with 2721 views | PatfromPoole |
The super duper fanzones and LEVEL 1 will greatly enhance the turnover, and might help us to cover most of Damion Downs’ wages. |  |
| |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 20:50 - May 25 with 2699 views | HytheFerrytales |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 20:41 - May 25 by PatfromPoole |
The super duper fanzones and LEVEL 1 will greatly enhance the turnover, and might help us to cover most of Damion Downs’ wages. |
[Post edited 25 May 21:41]
| | | |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 22:02 - May 25 with 2597 views | saintmark1976 |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 20:41 - May 25 by PatfromPoole |
The super duper fanzones and LEVEL 1 will greatly enhance the turnover, and might help us to cover most of Damion Downs’ wages. |
Don’t Pat, I had completely forgotten about him having been blind sided by the thought of Bazunu becoming our number one keeper again. | |
| |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 16:00 - May 26 with 2342 views | InTimeAddedOn |
OK 1885 I will give it a go
The new EFL Squad Cost Rules (SCR) will restrict us to spending a maximum of 85% of our football related revenue on first team squad costs (wages, manager costs, and transfer amortisation). This replaces the previous Profitability and Sustainability (PSR) loss allowance system with a strict revenue tied cap.
From what I can see so far, the new rules will impact us in 4 main ways:
1 - Revenue Driven Capping - Under the previous system, ambitious clubs could risk large deficits to chase promotion. Under SCR, Southampton's allowed squad spend is directly tethered to our generated revenue and net player sales. As a club with higher commercial and operational revenue than many second tier rivals, this will likely give us an inherently larger spending ceiling. However, it does not sit well with the SR player trading model - see 4 below.
2. - Cap on Owner Investments - Previously, billionaire owners could directly subsidise massive losses with unlimited equity injections. The SCR limits owner investments to a flexible equity top-up of £33m over a three year rolling period with a £15m maximum per season but still £33m over three seasons
3 - In Season Monitoring - The EFL now tracks these financial ratios in real time throughout the season rather than waiting for an ‘after the event’ audit. This provides earlier visibility on club finances but forces much stricter budget planning to remain inside the regulatory framework. The EFL intend to conduct two rolling in season audits on all clubs in October and March with immediate in season sanctions likely to be heavy fines for exceeding 85% and 6 point deductions for exceeding 115%. This would be similar to the way West Brom were handed a late in-season points deduction last month for a relatively minor PSR breach.
4 - SR Player Trading Model - With particular reference to our multi-club partnership I cannot see SR being able to continue in the same way that they have operated over the past couple of seasons in terms of buying players and then sending them off to Goztepe. From now on ST would need to obtain a loan fee equal to or in excess of the seasonal portion of the transfer fee amortisation. So, if we signed a player on a four year contract and the player costs £10m then we would show expenditure of £2.5m a season for four seasons through the accounts, we would therefore need to obtain a loan fee of £2.5m per season or more for that player in order to at least break even from an accounting point of view. Can you imagine anyone prepared to do that for a player only worth £10m? Unlikely. This may well mean a sea change in the way we buy players / loan them out with SR’s MCP.
There is a lot to consider with this change. Currently Saints are spending about 73% of income on wages but we still have a ‘PL hangover’ in wage terms as several players still under contract will be on PL wages albeit with a relegation clause reduction applied. If there are players wanting to leave due to Spygate it might help with the wage bill and the incoming fees as long as Spors can find another Scienza, another Jander and another Peretz ect… We still have the second season parachute payment and a decent sized ground, a loyal fan base (hopefully after Spygate) and excellent corporate potential earnings plus other income generators such as stadium concerts, the Dell Bar, and Level 1. We probably have better commercial contracts than a lot of clubs , I just hope Spygate does not damage them. The team that will potentially fare best is West Ham with Y1 parachute payments plus a 62,000 capacity (if the can near fill it) excellent potential corporate earnings and strong contracts. Plus thanks to Uncle Boris when London Mayor the already taxpayer subsidised rent and policing costs will be further subsidised thanks to Boris agreeing to a relegation clause that reduces West Ham’s payments!
One interesting by-product of this change is that the fans suddenly become more important to a club than they have been for a while. Saints now need us to generate as much revenue for them as we can so they had better start to treat us better than they have done in recent seasons. The disconnect between club and fan base has to improve as they really do need us onside. The club needs to get itself into Leo Scienza mode and behave towards us more like he did all season. Needs a change in personnel IMO as a lot of the current incumbents don’t seem to have much of a clue, be it the ticket office not doung their job properly but never apologising up to the deafening silence we are currently experiencing from the top, it can’t go on like that, they need us all onside and spending money.
My only final concern is debt / borrowing we are currently committed to from previous seasons. Not sure enough on that to pontificate, maybe Saintfan73 will weigh in with some detailed info, in the meantime ai will see what ai can find out. [Post edited 26 May 16:54]
|  | | |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 16:22 - May 26 with 2301 views | 1885_SFC |
Cheers for that mate. Interesting.
I guess time will tell whether it will benefit or hinder us... or not really concern us too much at all. | |
| |
Login to get fewer ads
| EFL 'Squad Cost Rules' for 2026-2027 season... on 16:38 - May 26 with 2286 views | InTimeAddedOn |
| EFL 'Squad Cost Rules' for 2026-2027 season... on 16:22 - May 26 by 1885_SFC |
Cheers for that mate. Interesting.
I guess time will tell whether it will benefit or hinder us... or not really concern us too much at all. |
No worries, you are welcome.
I am 50/50 on it, I can make a case for it having a negative impact and equally one for it being all OK as we are technically still a ‘bigger club in a smaller pond’ so should have a much higher spending threshold than some of the others around us.
My one concern is old debt / loans coming back to bite us if they have deferred payment deadlines and become due as I don’t know if an owner can write them off anymore under these new rules like the Bournemouth owner did not that long ago.
Time will tell… | | | |
| |
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.