Championship adopts squad cost ratio as West Brom and Wolves gain flexibility | OneFootball

Championship clubs have approved a switch to a squad cost ratio from next season, replacing profit and sustainability rules and giving West Brom greater financial flexibility.

According to ExpressAndStar.com, the proposal passed at Friday's EFL meeting with 20 of the 24 clubs in favour, above the threshold of 16.

The new system caps spending on player costs at 85 per cent of a club's football revenue and permits a £10m annual capital injection towards revenue. It is intended to provide clubs with more freedom to invest.

Under PSR, second-tier sides could lose up to £39m across three years, a limit that has caught out several, including Albion. Last month West Brom were docked two points after a hearing and, while maintaining their innocence, decided against an appeal last week after receiving written reasons, having already secured safety.

Wolves, who are set to be relegated to the Championship, did not vote because they remain a Premier League club, but will benefit from the change next season.

Premier League clubs voted last November to replace PSR, which allowed £105m losses over three years, with the SCR model. Albion supported the move and have long advocated it since Shilen Patel's Bilkul Football bought the club from Guochuan Lai more than two years ago.

Albion's position under PSR was forecast to ease from this summer regardless of the sanction, and the SCR places greater emphasis on revenue, allowing owners to speculate more if they choose.

Source: ExpressAndStar.com