We can also spend up to 115% in certain circumstances:
https://gis.sport/news/what-is-premier-league-squad-cost-ratio-scr-rules-explained/
Scenario 1: Fully Compliant
Let’s say a club begins their season with a predicted revenue of £100 million.
Its Green Threshold (85%) therefore allows £85 million to be spent on squad costs.
Its Red Threshold (115%) is £115 million—30% above the Green.
During the season, the club is performing as expected and only spends, for example, £80 million on its squad. It is therefore fully compliant with SCR, and no further action is needed.
Scenario 2: Between the Thresholds (85%-115%)
In this scenario, the same club spends £90 million. It is therefore at a Squad Cost Ratio of 90%.
The club would then be assessed by the Premier League at the end of that season in June using its actual revenues and costs. If it is indeed found to be above 85%, it may face a levy.
As the spending was 5% over the threshold, the following season would see its Red Threshold decrease by 5% to 110%.
If it was then fully compliant the season after that, the threshold would rise back up to its original 115%.