West Brom and Championship clubs to vote on PSR overhaul and spending cap | OneFootball

West Brom and their Championship rivals will vote on Friday on aligning financial rules with the Premier League by replacing current PSR limits with a squad cost ratio from next season.

According to ExpressAndStar.com, the proposal would cap spending on player costs at 85 per cent of football revenue. The 24 clubs will decide whether to adopt the system.

West Brom were deducted two points for breaching PSR this season, a sanction the club felt was unfair. The matter ended on Wednesday when they chose not to appeal. Leicester City were also docked points.

The plan would also allow around £10m in annual equity to count towards revenue, increasing spending capacity. Current rules cap clubs' losses at £39m over a three-year period. The changes are intended to give clubs greater scope to invest in the chase for promotion.

Clubs have already trialled the ratio in shadow form, so they can switch quickly if approved. To pass, at least 16 of the 24 must vote in favour, and the outcome could be tight given differing views.

Separately, League One clubs are considering aligning with League Two by cutting permitted spending from 60 per cent of turnover to 50. Some League One owners favour a salary cap, but that is not on the ballot. There is agreement among a number of clubs that costs need to fall across the board.

Source: ExpressAndStar.com