Financial fair play is UEFA's framework for stopping clubs spending more than they earn. Profitability and Sustainability Rules, or PSR, is the Premier League's own version of the same idea, measured over a rolling three year period. Both are now moving towards capping squad spending as a share of revenue.
The two are separate systems with separate punishments. UEFA's rules govern entry to its competitions, so a breach threatens a European place or a settlement agreement. The Premier League's rules govern membership of the league, and a breach is handled by an independent commission that can impose a points deduction.
The direction of travel in both is away from a simple losses limit and towards a squad cost ratio, which measures wages, transfer amortisation and agent fees against revenue. UEFA phased in a ratio of that kind across the mid-2020s, capping squad spending at a share of what a club brings in.
The Premier League followed. Clubs voted in late 2025 to replace PSR from the 2026-27 season with a squad cost ratio, set at a threshold of roughly 85 per cent of revenue, plus a separate resilience test, with fines for going over the first line and a points deduction for going well past it. PSR remained the binding rule through the 2025-26 transition.