Championship clubs will adopt a new cost control framework from next season

Championship clubs have approved a new financial framework that limits spending on players and managers to 85 percent of revenues from the 2026-2027 season, the English Football League announced on Friday.

The new Squad Cost Rules (SCR) system will replace the Profitability and Sustainability Rules, meaning clubs can lose no more than 39 million pounds ($52.02 million) over a three-year cycle.

SCR has been operating “in the shadows” alongside existing regulations this season, marking a shift towards real-time financial monitoring, rather than assessing club finances after the event.

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“The SCR system limits clubs’ expenditure on player and manager-related costs, including transfer fees, to a fixed percentage of their income, in addition to a limited level of owner financing,” the EFL said in a statement.

Owners can still finance their clubs, but that investment will be limited to £33 million over three years, with a maximum of £15 million per season.

The changes are intended to give clubs greater clarity, with the EFL’s Club Financial Reporting Unit monitoring expenses as they occur rather than auditing accounts at year-end.

“The framework also includes safeguards around commercial deals linked to owners or associated parties,” the EFL added.

Published on May 15, 2026