Premier League clubs have agreed to continue with the existing profit and sustainability rules (PSR) for one more season amid concerns over a legal threat from the PFA and the ongoing legal challenges from Manchester City.

At a meeting in London earlier today the 20 clubs unanimously agreed to continue trialling new Squad Cost Ratio rules next season, but in a surprise move agreed that PSR regulations would remain in force.

PSR rules are unpopular with many clubs, with Everton and Nottingham Forest docked points for breaching them last season, and a large number of clubs including Manchester United, Newcastle and Aston Villa complaining that the regulations prevented them from signing players during last month’s transfer window. 

The Premier League is planning to replace PSR with the Squad Cost Ratio but has opted to delay the change as they face legal challenges on several fronts.

The PFA served notice last week that if SCR was introdued the union’s lawyers “anticipate being instructed to commence legal proceedings against the Premier League on behalf of our client”.

Manchester City have also brought two legal challenges against the Premier League’s Associated Party Transactions, which remain ongoing.

SCR, which limits clubs to spending 85 per cent of their revenue on player wages, transfers and agents fees, has been in operation on a shadow basis this season and it was thought it would be introduced formally for the 2025-26 campaign. The SCR follows the introduction of a similar rule by Uefa that sets the spending limit at 70 per cent of revenue.

At today’s meeting the clubs agreed to continue the trial next season, as well as a similar experiment with anchoring, a system that would restrict the top teams’ spending on player costs to five times the amount the bottom club receives in TV and prize money. Anchoring is opposed by both City and Manchester United, but neither club spoke out against it today.

The Premier League also confirmed that semi-automated offside technology (SAOT) will be used in a competitive games for the first time during the FA Cup fifth round next month.

The technology will be used in seven of the eight fifth-round ties, with the exception being Preston North End against Burnley at Deepdale, the only fixture not being played at a Premier League stadium.

If the SAOT trial is considered to be a success, the Premier League will look to introduce the technology into the top flight at a later date.