The Professional Footballers’ Association (PFA) has launched legal action against the English Football League (EFL) concerning revised wage limits in League One.
In May, the EFL confirmed, external link that Squad Cost Rules (SCR) would take the place of the Profitability and Sustainability (P&S) system starting in the 2026-27 season.
Under the revised League One regulations, the proportion of revenue clubs may allocate to wages will fall from 60% to 50%.
Clubs dropping down from the Championship will be allowed to use 65% of their revenue for wages during their first campaign in the third tier, compared with the previous limit of 75%.
Managers’ salaries will also count toward squad costs, while no more than half of the money provided by club owners may be used to fund wages.
Responding on Tuesday, the EFL expressed concern and disappointment over the PFA’s legal action, maintaining that the regulations do not represent a substantial alteration affecting players’ employment terms and conditions.
It said the measures were intended to encourage sensible cost management and strengthen the long-term financial health of League One clubs.
The league insisted that the changes were not designed to weaken players’ interests, but to establish a secure environment where clubs can fulfil their commitments and keep investing in football.
It also stated that discussions with the PFA and other relevant parties would continue in a constructive manner.
The PFA, the trade union representing professional players, argued that the league could not introduce the amendments without the full approval of the Professional Football Negotiating and Consultative Committee (PFNCC).
According to the PFA, the club vote approving measures that would further limit spending on players’ wages did not follow the consultation and agreement procedure required through the PFNCC, whose membership includes the EFL, PFA, FA and Premier League.
The EFL rejected the union’s interpretation of the situation.
An earlier attempt to establish wage caps in League One and League Two was abandoned in 2021 after an independent arbitration panel issued its ruling.
That proposal would have limited annual salary spending to £2.5m for third-tier clubs and £1.25m for fourth-tier teams, but the panel accepted the PFA’s argument that the restrictions could not lawfully be enforced.
League One side Oxford United received a temporary player-registration embargo last month after failing to satisfy the updated requirements.
The club is currently prevented from recruiting players through permanent deals, loans or free transfers, and has indicated that meeting the new obligations could take several months.
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