Championship clubs back new financial rules as West Brom and Wolves set to benefit | OneFootball

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

According to ExpressAndStar.com, 20 of the 24 clubs backed the change at an EFL meeting on Friday, surpassing the 16 required for adoption.

Since 2017/18, profit and sustainability regulations capped cumulative losses at £39m over three years, and several sides, including Albion, have fallen foul.

Earlier this season the Premier League set out an SCR model that caps player costs at 85% of football revenue and permits a £10m annual capital injection towards revenue. The shift is designed to give clubs more scope to invest.

Albion supported the change and Wolves, set to be relegated to the Championship, were ineligible to vote as they remain a Premier League club, but they will benefit from next season.

Albion have been leading advocates of SCR since Shilen Patel’s Bilkul Football bought the club from Guochuan Lai more than two years ago.

Last month Albion were docked two points after breaching the £39m PSR loss limit across three years. The club maintains its innocence and, after receiving written reasons last week, chose not to appeal having already secured safety.

Premier League clubs voted in November to replace PSR, which allowed £105m losses over three years, with SCR.

SCR places greater emphasis on revenue and could allow owners to speculate further. Albion’s position was forecast to ease from this summer in any case.

Source: ExpressAndStar.com