AliousSunderland are among several Championship clubs that have agreed to modify, rather than completely overhaul, the current profit and sustainability rules (PSR)** for the upcoming season. These adjustments come amid growing concerns about financial disparities within the division, particularly due to parachute payments and the widening gap between the Premier League and Championship.
Following lengthy discussions throughout the season, Championship clubs voted in favor of three key amendments to the existing PSR framework. These changes mirror a similar decision made by Premier League clubs, who opted to retain their current financial regulations for at least another year rather than implement a radical shift.
What Are the Three PSR Tweaks?
1️Maintaining the Loss Limit at £41.5M – The threshold for allowable financial losses over a three-year cycle will remain at £41.5 million, an increase from the previous £39 million cap that was temporarily raised this season to account for inflation and rising operational costs.
Mandatory Mid-Cycle PSR Submissions – Previously, only clubs under financial scrutiny were required to submit a profit and sustainability report after two years in a three-year cycle. Now, all 24 Championship clubs must submit these calculations annually starting next season.
3Revised Auditing of Add-Backs – While certain investments—such as those in youth development, women’s teams, and infrastructure—are excluded from PSR calculations, changes will be made to how these exemptions are audited. The specifics of this adjustment remain undisclosed.
These modifications will take effect at the start of the 2024/25 season, but further discussions on more substantial changes are expected for 2026/27.
How Does This Impact Sunderland’s Transfer Budget?
Sunderland remain in the hunt for a Championship play-off spot, which could secure a return to the Premier League. However, if they remain in the second tier, the new PSR rules will directly influence how much financial backing owner Kyril Louis-Dreyfus can provide for sporting director Kristjaan Speakman and head coach Regis Le Bris in the summer transfer window.
Premier League’s FFP Future
Meanwhile, Premier League clubs recently discussed potential adjustments to Financial Fair Play (FFP) regulations, especially in light of ongoing investigations into alleged rule breaches. They ultimately decided to retain their current rules, which permit clubs to incur losses of up to £105 million over a rolling three-year period.
However, the Premier League will conduct a trial run of a squad cost ratio rule during the 2025/26 season. This model, already used in UEFA competitions, would cap spending on wages, transfers, and agent fees at 85% of club revenue. The Professional Footballers’ Association (PFA) has already raised concerns about the potential impact on player wages.
As financial regulations continue to evolve, Sunderland and other Championship clubs must navigate these changes carefully to ensure compliance while remaining competitive in the promotion race.
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