SCR is live for 2026/27 in the Premier League and Championship. Figures last reviewed 2026-09-03.

SCR glossary

Feedback Loop (ratchet)

The Feedback Loop is the Premier League mechanism that cuts a club's SCR allowance by the size of any breach of the 85% Green Threshold, then rebuilds it at 10 percentage points a season, capped at 30%.

Also called

ratchet negative feedback loop positive feedback loop allowance ratchet

The allowance above the Green Threshold is a running balance, not a permanent buffer. Breach 85% at the Accounts Confirmation Test and next season's allowance is reduced by the size of the breach — the negative loop.

Return to compliance and the allowance rebuilds at 10 percentage points a season, up to the 30% cap it started at — the positive loop.

So the Red Threshold moves with the club's own history. A club that overspends by 20 percentage points drops to a 10% allowance and a 95% ceiling the following season, while a compliant club keeps the full 115%.

Unused headroom never carries forward. Spending well under the line one year does not buy extra allowance the next; the only way the allowance grows is by rebuilding after it has been cut.

Related terms

Red Threshold Green Threshold Accounts Confirmation Test Levy

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Definitions summarise published EFL and Premier League regulations in plain English; they are not legal advice and not a substitute for the rulebooks themselves. Last reviewed 2026-09-10. Full glossary → SCR explained →