Championship clubs have approved a new financial framework that will cap 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 will replace the Profitability and Sustainability Rules, which allow clubs to lose no more than 39 million pounds ($52.02 million) over a three-year cycle.

SCR has operated “in shadow” alongside existing regulations this season and marks a shift towards real-time financial monitoring, rather than reviewing club finances after the event.

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“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 still fund their clubs, but that investment will be capped at 33 million pounds over a three-year period, with a maximum of 15 million pounds in a season.

The changes are aimed at giving clubs greater clarity, while the EFL’s Club Financial Reporting Unit monitors spending as it happens instead of checking accounts at the end of the year.

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

Published on May 15, 2026