Premier League may exempt promoted clubs' bonuses from PSR

September 20th news - According to the latest report from Martyn Ziegler, chief reporter of The Times, the urgent issue of promoted teams facing immediate relegation is expected to be a focal point at the first meeting of the Premier League clubs next week, where future financial rules will be discussed.

Ipswich Town, Southampton, and Leicester City were promoted from the Championship in the 2023-24 season but were all relegated last season. This marks the second consecutive year that none of the promoted teams managed to avoid relegation, with all going straight back down.

There is a growing belief that the Profit and Sustainability Rules (PSR) are not helping promoted clubs, and the gap is widening.

Having spent the previous two years in the English Football League (EFL), newly promoted Sunderland and Leeds United have a maximum allowable PSR loss of £61 million for the 2025-26 season, while clubs that have consistently been in the top flight have a maximum allowable PSR loss of £105 million.

If the general consensus is to retain PSR for the next season—and a vote on this is unlikely before the new year—one idea being circulated is that promotion bonuses should be excluded from PSR calculations.

These bonuses can be substantial: Leeds United’s latest annual report disclosed that they had to pay £19.2 million in player bonuses after winning the Championship title.

However, although some clubs believe that the league would benefit if promoted teams were more competitive, those at greater risk of relegation may be reluctant to change the rules.

Discussions on future financial rules are also expected to cover the proposed "team cost rule," which would limit clubs' spending on player wages, transfers, and agents to 85% of their turnover. UEFA already uses this rule, but at a lower ratio of 70%.

Before taking action next season, Premier League clubs want clarity on any penalties for breaching the limits, such as the amount of fines for violations and when sporting sanctions would come into effect.