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NEWS: EFL Statement - Amendments to Profitability and Sustainability Rules

17 February 2022

EFL Championship Clubs have today approved a number of changes to the division’s Profitability and Sustainability Rules (P&S) that will take effect immediately. The amendments come following a period of consultation and take into consideration a range of representations from Clubs.

In total 8 proposals were put forward and were passed, requiring a two-thirds majority of Championship Clubs. The main changes are summarised below.

COVID

As a result of a number of Clubs highlighting that the pandemic continues to have an adverse financial effect despite a return to full capacity stadiums, Clubs have opted to reintroduce COVID add backs into the P&S calculation for season 2021/22.  The impact is that Clubs will be able to claim lost revenues or exceptional costs directly relating to the pandemic up to a value of £2.5m for the reporting period 2021/22. Clubs can claim up to £5m for seasons 2019/20 and 2020/21.

Accounting for Player Registrations

Clubs are now required to provide a Player Registration schedule that will ensure greater transparency in respect of information that includes but is not limited to players wages, sell-on rights, registration costs and amortisation.  These new requirements follow the principles of the UEFA Club Financial Fair Play Regulations.

In addition, EFL Clubs have agreed that a mandatory requirement for the amortisation of Player Registrations on a straight-line basis should be included.

Introduction of Monitoring for Forecasted Breaches

With a priority to ensure future compliance with the P&S rules, Clubs have agreed that where a breach is forecasted in future years then the League should have the ability to impose a business plan or appropriate monitoring requirements.

Trevor Birch, EFL Chief Executive said:

“Over the past two years of unprecedented challenges and upheaval, the priority of the EFL has been to support Clubs practically wherever possible while maintaining the ongoing integrity of our competitions and the League as a collective. I’m pleased to say that the changes agreed by Clubs will help them manage ongoing financial issues in the short term, while providing the League with additional powers to assist Clubs in complying with their P&S obligations going forward.”


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