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Championship clubs vote in new squad spending rules
Championship clubs approved a new squad cost ratio system that caps spending at 85% of income, while League One clubs cut wage limits to 50%.
On Friday, West Brom and fellow Championship clubs voted to replace Profitability and Sustainability rules with a new Squad Cost Rules framework, with 20 of 24 clubs backing the change for the 2026/27 season.
The new SCR system limits clubs' spending on player and manager-related costs to 85% of their total football revenue, alongside a flexible equity top-up allowance of £33m over three years, capped at £15m per season.
League One clubs concurrently approved amendments to their Salary Cost Management Protocol rules, reducing permitted wage spending from 60% to 50% of turnover and removing the staggered approach to equity injections.
These changes align the second tier with the Premier League's squad cost ratio model, allowing the EFL to monitor clubs' financial positions in real time rather than reviewing accounts after the event.
Clubs operated under a shadow SCR system during the 2025/26 season to assess the framework's impact, with the EFL intending these regulations to foster greater clarity and responsiveness in cost control across divisions.