EFL Championship adopts new squad cost ratio financial rules

The EFL Championship is implementing new financial regulations for the 2026-27 season. Following a vote in May, Championship clubs have moved away from Profitability and Sustainability Rules (PSR) in favor of a Squad Cost Ratio (SCR). This new system ties spending on players, managers, and agents to a club’s allowable income.

These changes follow a controversial season involving a ‘Spygate’ scandal that resulted in Southampton being removed from the play-off final. Hull City ultimately secured promotion to the Premier League, becoming the first club to operate under the new financial strictures in the top tier.

While the Championship is adopting an SCR model similar to the Premier League, the EFL will continue to operate with three different sets of financial rules across the Championship, League One, and League Two. Meanwhile, Southampton faces a four-point deduction as they begin the new campaign, a hurdle analysts suggest is surmountable based on their previous season's performance.