West Brom and Wolves to benefit after Championship backs new spending rules | OneFootball

West Brom and Wolves will have greater financial flexibility from next season after Championship clubs voted to overhaul spending rules.

According to ExpressAndStar.com, the EFL confirmed at a Friday meeting that the division will adopt a squad cost ratio model, with 20 of 24 clubs backing the change, above the 16 needed.

The move replaces profit and sustainability rules, brought in for 2017/18, which limited losses to £39m over three years. Under the new system, player-related costs are capped at 85 per cent of football revenue and owners may inject £10million a year towards revenue. Premier League clubs voted last November to switch to the same framework, replacing a £105m three year PSR allowance.

Wolves, who are set to be relegated, did not vote as they remain a Premier League club, but they will benefit from next season. West Brom were firm advocates of the change, a stance held since Shilen Patel’s Bilkul Football bought the club from Guochuan Lai more than two years ago.

Albion were docked two points last month after breaching the £39m PSR limit across three years. The club maintain their innocence but, after receiving written reasons last week, chose not to appeal having already secured Championship safety.

In League One, clubs were set to vote on aligning with League Two by cutting permitted spend from 60 per cent to 50 of turnover. Some owners favour a salary cap, although that is not on the table, and there is broad acceptance that costs must come down as owners tire of funding annual losses.

Source: ExpressAndStar.com