EFL caps spending on players and managers in the Championship

(corrects current allowed loss in paragraph two)

May 15 : Championship (second-tier) clubs have approved a new financial framework that will cap their spending on players and managers at 85 per cent of income from the 2026-27 season, the English Football League announced on Friday.

The new Squad Cost Rules (SCR) system replaces Profitability and Sustainability Rules, which permit clubs to lose no more than 39 million pounds ($52.02 million) in a three-year cycle.

SCR has operated "in shadow" alongside existing regulations this season and is a shift towards real-time monitoring rather than reviewing club finances "after the event".

"The SCR system limits clubs spending on player and manager-related costs (including transfer fees) to a set percentage of their income, alongside a limited level of owner funding," the EFL said in a statement.

Owners can also fund their club but that is capped at 33 million pounds over a three-year period, with a maximum of 15 million pounds a season.

The changes aim to give clubs greater clarity while the EFL's Club Financial Reporting Unit monitors spending as it happens instead of checking the books at the end of the year.

"The framework also includes safeguards around commercial deals linked to owners or associated parties," the EFL added. "The changes are intended to create a simpler and more responsive system of cost control within the Championship.

"A version of the SCR framework is also to be introduced in the Premier League for the 2026-27 season, bringing closer alignment between the divisions."

($1 = 0.7497 pounds)