The Premier League want the EFL to drop their profit and sustainability (P&S) rules and adopt their own system of cost controls as the price for giving an increased funding package to the lower divisions.
Under the EFL’s existing P&S rules clubs are prevented from losing more than £39million over a three-year period, and Derby, Birmingham, Reading and Sheffield Wednesday have all been docked points for breaches in recent years.
In contrast, the top flight permit losses of up to £105m over the same period. The Premier League are planning to introduce a version of UEFA’s new financial sustainability rules, which will limit clubs’ spending on wages, transfers and agent fees to 90 per cent of revenue from next season falling to 70 per cent from 2025-26, and want the EFL to follow suit.
Having different rules between the divisions creates problems in enforcing the regulations on clubs that have been relegated and promoted.