Episode overview
Dom Smith re-joins James to explain the changes to the financial rules affecting English football clubs where Squad Cost Ratio requirements are replacing Profit and Sustainability Rules this summer. These financial requirements and penalties for non-compliance are complex and Dom breaks down all the key aspects as only an accountant can!
Episode summary
James Shipp is joined once again by Dom Smith to unpack one of the biggest changes in English football finance: the transition from Profit and Sustainability Rules (PSR) to the new Squad Cost Ratio (SCR) framework. Together, they explore why the regulations are changing, how the new system will affect football clubs, and what the implications could be for financial management across the game.
The discussion breaks down the complexities of football financial regulation in a clear and accessible way, covering how clubs will be assessed under the new rules, the spending limits linked to squad costs, and the potential consequences of non-compliance. Whether you're a football executive, club owner, finance professional, or passionate supporter interested in the business side of the sport, this episode provides valuable insight into the future of football governance, club finances, and financial sustainability in English football.
Key takeaways
PSR is being replaced by the new Squad Cost Ratio framework.
SCR focuses on controlling spending relative to football-related income.
Clubs must adapt their financial planning to meet the new requirements.
Non-compliance could result in penalties and regulatory action.
The changes are designed to improve long-term financial sustainability across English football.
Chapters
00:00 - Introduction and returning to football finance
00:48 - What is Squad Cost Ratio (SCR)?
02:03 - Calculating SCR: revenue vs playing squad costs
02:48 - Closing PSR loopholes and non-playing costs
06:04 - Player amortisation and selling academy players
08:56 - Why SCR is replacing PSR and in-season monitoring
11:21 - Premier League vote and opposition from smaller clubs
14:14 - Comparison with UEFA regulations (70% vs 85%)
18:15 - Green vs red thresholds and financial penalties
21:00 - Can wealthy clubs just pay the fines?
24:14 - How SCR affects relegation and Championship teams
28:01 - Which clubs benefit most from the new rules?
31:06 - Finding loopholes and revenue maximisation
33:09 - NFL salary cap comparison
35:20 - Final thoughts: is SCR better than PSR?
Guest bio
Dom Smith is a Manager in the Business Services Team at Lovewell Blake's Norwich office, where he works with a diverse range of limited companies, from ambitious start-ups and owner-managed businesses to UK subsidiaries of international organisations. With expertise spanning accounting, tax planning, business advisory services, accounting software, and financial compliance, Dom is passionate about helping business owners understand their finances and make informed decisions for growth.
