A squad-cost ratio system of financial control was adopted by the Premier League on a trial basis this season.
Squad-cost ratio allows clubs to spend up to a percentage of their total revenues on squad-related costs.
It is similar to the SCR used by Uefa for European competitions, which is set to 70%.
Premier League clubs in Europe will be capped at this percentage to be in line with Uefa rules.
This means Liverpool, Arsenal, Manchester City, Chelsea, Newcastle, Tottenham, Aston Villa, Crystal Palace and Nottingham Forest are capped at 70%.
Premier League chief executive Richard Masters said the clubs not in Europe would be capped at 85%, “because we always want our clubs to have the ability to invest”.
The Premier League is also trialling a top-to-bottom anchoring model, which caps the amount any club can spend as a multiple of the income earned by the league’s bottom side.
Should these rules be adopted, they would replace current profit and sustainability rules (PSR) and come into effect at the start of the 2026-27 season.
This article is the latest from BBC Sport’s Ask Me Anything team.
