Under PSR, deductions are now set based upon on the level of the overspend, locked to a grid.
Go over the £39m limit and it is a points deduction.
It starts at three points for under £2m, then four for between £2m and £4m, five for £4m to £6m, and six points for £6m to £8m.
A club can claim back one or two points in mitigation if their accounts show a positive trend, but this would not be the case for the Tigers.
Hull would argue that this is not a result of regular operational overspending. It is a by-product of their success as only the promotion bonuses have caused it.
This is unlikely to hold sway, as Forest discovered in 2024 when they were docked four points, as it is a sign of sporting benefit from payments made to players.
Leicester City provide the precedent for Hull to receive the deduction in the top flight.
In 2024, Leicester managed to avoid a penalty by arguing the Premier League did not have jurisdiction.
This led to a change in the rules, with the two competitions inserting reciprocal clauses in their regulations.
Such collaboration between the leagues was seen in February.
The Premier League took action against Leicester for an overspend through to the 2024-25 season. The EFL agreed to apply the six-point penalty in the Championship, which ultimately caused their relegation.
PSR is being replaced on 1 July by a new system called squad cost ratio SCR). Rather than assessing losses over a three year-period, it allows clubs to spend 85% of the income they generate on their squads and is assessed annually.
