Championship Clubs Embrace New Spending Rules for Financial Clarity
Championship clubs have voted to adopt a new financial framework known as Squad Cost Rules (SCR) starting next season. This shift aligns the second tier with the Premier League, which implemented its own version of SCR in November. Under the new regulations, SCR will replace the previous profit and sustainability rules that limited clubs to losses of £39 million over three years. Instead, the assessment will focus on a club's total earnings from football operations and how much of that is allocated to squad expenses, rather than traditional profit and loss calculations. Key details of the new SCR include: Spending on player and manager-related costs, including transfer fees, will be capped at 85% of income. Owners can make a flexible equity top-up allowance of £33 million over three years, with a maximum of £15 million usable in any single season. Enhanced monitoring during the season will provide clubs with greater clarity on their financial status. In the 2024-25 season, only three Championship clubs reported profits, with Stoke City being the only one to record a profit due to a £90 million loan waiver from new owner John Coates. The remaining 22 clubs collectively lost £317 million, excluding Stoke's adjusted figures. Additionally, modifications to the Salary Cost Management Protocol (SCMP) in League One will see the wage spending limit reduced from 60% to 50% of turnover. Newly relegated clubs from the Championship will be allowed to spend 65% on wages in their first League One season, down from 75%. However, a proposal for League Two clubs to adopt the same SCMP calculation did not achieve the necessary support.
Source: BBC Sport - 2026-05-15