Premier League PSR Situation: How Much A Club Can Spend Without Getting Fine?

The Premier League PSR was brought in to regulate the finances of each club. It is factual that the Premier League is the best in the world however, it can become chaotic and troublesome for some clubs, resulting in unfair and shady spending. The PL brought in the PSR model, and the Premier League PSR situation has caused a lot of controversy, with Manchester United, Aston Villa, among a few other clubs, openly criticizing it.

The English Premier League has blossomed into the best league in football over the years, which implies that it has to be run well be it in financial terms as well in strategic terms. To address any financial issues, the Premier League introduced the PSR (Profit & Sustainability Rules) to not only control the club’s finances but also to prevent them from incurring huge losses during any transfer window. The PSR does not subject a certain club to a particular spending cap but does limit them to incur losses of a maximum allowable pre-tax loss of £105 million over three years. This equates to £35 million per season.

Many clubs did criticize the Premier League PSR since they could not spend a huge sum of money during transfer windows, but the league is still persistent in enforcing these rules so as to regulate the finances of a club. This implies that a club will have to carefully examine its finances and then understand whether or not it can afford to make a huge move in a transfer window.

What are Premier League PSR Rules?

Premier League introduced the Profit & Sustainability Rules back in the 2013-2014 season as a means to regulate the finances of each club and avoid major losses. Initially, they were a part of the FFP (Financial Fair Play) system, but PSR has become a more rigid and stiff model. The PSR allows clubs to incur a maximum allowable pre-tax loss of £105 million over a three-year period, equating to about £35 million per season. The losses of each club are calculated based on the club’s operational performance, which excludes costs such as infrastructure development, academy programs, women’s football, and community work. Each club is allowed to inject equity up to £90 million from ownership to offset losses.

All of the clubs in the Premier League have to submit their respective P&L account and balance sheets by March 31 of each year. Based on that and the PSR rules, each club’s spending is monitored over three years, and their calculations are monitored as well if they result in a loss of over £105 million. If the calculations result in a loss of over £105 million, then there are a lot of sanctions that a particular club can face depending on the severity of the violation. One of the most recent and well-known violations of the PSR was from Everton in the 2024-2025 season, in which they faced point deductions, which almost got them relegated from the league.

DISCLAIMER: The amount mentioned here and below is the “Estimated Tax Limit” values provided for each club, which is the estimated spending room under Premier League PSR, implying how much a club can afford to lose within the £105 million threshold.

A simple example is that Chelsea can run a £300m PSR accountable loss over the next three years and be fine but Burnley which is the sole club in the red zone has an estimated tax limit of -£20m which means they have to make at least £20m profit in this cycle to avoid breaching and sanctions.

PSR Premier League Table

Which Clubs are at risk under Premier League PSR?

The mentioned club are at risk:

Aston Villa | Estimated Tax Limit: -£15m

Aston Villa’s ambition under Unai Emery, especially at one point where they were competing for the UCL as well as other competitions, has led to aggressive investment. It is notable that their performances have improved significantly, but the club’s margin under PSR is slim, which is likely to lead to a sales or wages restructuring soon.

Which Clubs Could Receive a Fine Under Premier League FFP Breach?

Some of the clubs mentioned here are likely to receive a fine:

Burnley | Estimated Tax Limit: -£20m

Burnley cannot afford any more losses and have to turn in a profit in this PSR cycle. The promotion income to the Premier League helps, but their lack of spending flexibility is likely to affect competitiveness. Burnley are the sole club in the red zone of the PSR and needs to either get some players sold off or some other revenue in quickly, since they also have limited commercial power.

Everton | Estimated Tax Limit: £39m

Although they can be fined, it is unlikely that they will make this mistake thrice, having already breached the PSR rules and been fined twice in the past. Everton are in a tight spot right now and cannot afford even marginal overspending since their stadium project has also increased their financial burden.

Leeds United | Estimated Tax Limit: £42m

Leeds’ relegation to the EFL Championship slashed their income significantly and although they dealt with that quite well, they cannot afford not to promote or bring in investment, which could push them towards the breach zone.

Bournemouth | Estimated Tax Limit: £35m

The Cherries have one of the smallest budgets in the league and do not have much room for error. A poor financial window or risky and hefty spending will put them in violation quickly. A piece of good news for them is that they are already active in the transfer window, making player sales for good amounts, which will help them financially.

Which clubs are on the safe side in Premier League PSR?

Some of the clubs mentioned here are likely to be safe as well if they implement player sales and spend cautious:

Chelsea | Estimated Tax Limit: £300m

Surprisingly, Chelsea’s recent massive squad overhaul and turnover were manageable, and they have the highest spending budget in the league due to their amortization strategies, strong commercial appeal, and revenue streams. Many are scrutinizing their transfer window however, their current PSR figures are healthy, and that is what matters.

Brighton | Estimated Tax Limit: £295m

Another surprising appearance on the list is Brighton. Brighton’s financial model should be a benchmark for the mid-table clubs to follow and how not to waste money. Brighton made a lot of money off the Alexis Mac Allister deal to Liverpool and Moises Caicedo deal to Chelsea. Further, they did not splash that money instantly, have low wage bills, and are consistent in the Premier League.

Manchester City | Estimated Tax Limit: £292m

Manchester City’s immense revenues have been driven by their domestic and recent European success, gradually giving them strong PSR flexibility despite not winning any trophies this season. However, over 100 charges for breaches over the last decade still hang over them, but nothing is proven, and on paper, they are within PSR limits.

Tottenham Hotspur | Estimated Tax Limit: £277m

Tottenham Hotspur are arguably the best financially run club in the league. Their new stadium, which is surely the best stadium offering the best facilities for the player and a conservative wage structure, have put them in a financially sound position. The club has avoided reckless spending and instead have used smart acquisitions and youth promotion. Further to their UEFA Europa League victory, UCL qualification makes their finances even better and room for more comfortable spending.

Manchester United |Estimated Tax Limit: £141m

United are in the safe zone, which is massively due to their commercial status as one of the best clubs in English football and in the history of football, which enables decent flexibility under PSR. However, their bloated wage bill for quite a few players who are not even playing regularly or are injured the majority of the time, poor signings, and recent underperformance, including not qualifying for any European competition, have slightly limited their margin. They have a bit of wiggle room, but their poor performances and poor strategy have surely hampered their budget.

Arsenal | Estimated Tax Limit: £97m

Arsenal have spent wisely and have shown restraint over the years. Although their heavy recent investment has not paid off since they have gone another season without a title despite being strong contenders for the UCL and PL, they have managed their wages well and continue growing revenue due UCL returns and brand sponsorships.

West Ham | Estimated Tax Limit: £95m

West Ham’s finances are perfect and what one would expect from a mid-table team. Their European success and well-managed recruitment have kept West Ham in the green, including the sale of Declan Rice, which provided major profit, while operating costs remain under control. It is notable that their finances are likely to get even better since there are a lot of rumours regarding the transfer of Mohamed Kudus, who is valued at £85m by the club and there are various teams looking to sign him.

Crystal Palace |Estimated Tax Limit: £90m

Crystal Palace has always been a cautious spender and not one to splash a lot of money. Further, their PSR and spending room are great due to a sensible wage bill.

Nottingham Forest |Estimated Tax Limit: £85m

Just like Everton learnt their lesson, Forest learnt theirs after a chaotic transfer window in the 2022-2023 season, which resulted in a points deduction. Ever since then, Forest has restructured quickly, which included slow and gradual spending and improved financial planning.

Fulham | Estimated Tax Limit: £77m

Fulham’s survival bonuses and squad retention have provided great results for them. They are in a good position currently since they have not spent recklessly post-promotion to the Premier League.

Liverpool | Estimated Tax Limit: £75m

Liverpool’s FSG model relies on sustainability over splurging money like Manchester United has done over the last few years. They are not the biggest spenders, and their PSR room is healthy thanks to a smart and cautious transfer strategy and strong commercial revenue. However, Liverpool are looking to make big moves this season and are going all in for Milos Kerkez and Florian Wirtz, both expensive players with the latter estimated at £100m. They will counter this with player sales, namely Darwin Nunez being one of the first candidates to leave, alongside a few others, which will provide good player sales and free up their wage bill.

Brentford |Estimated Tax Limit: £58m

Brentford focuses more on scouting & recruitment to ensure profitability rather than spending heavily. The club keeps a tight wage model.

Wolves | Estimated Tax Limit: £56m

Wolves did have a period of overspending, but they have scaled back. Their Recent sales, letting go of a few players from the squad, and better wage control improved their PSR significantly.

Sunderland | Estimated Tax Limit: £33m

Sunderland managed to avoid PSR sanctions whilst in the EFL Championship due to their strict revenue control, and they are likely to maintain it despite being promoted to the Premier League.