Monday briefing: Championship clubs back new squad cost ratio financial rules
Monday briefing: Championship clubs back new squad cost ratio financial rules
IMAGO
18 May 2026 - 4:30 AM
Championship clubs have voted to replace profitability and sustainability rules (P&S) with a squad cost ratio (SCR) system from next season, following approval at Friday’s EFL meeting.
Under the new framework, clubs will be restricted to spending a maximum of 85 per cent of their revenues on first-team squad costs, bringing the Championship’s financial controls closer to those used in the Premier League. The measure was approved with 20 clubs voting in favour and four against.
The EFL said the revised system would allow “real-time monitoring during the season” rather than reviewing club finances retrospectively. The league added that the changes were intended to create “a simpler and more responsive system of cost control within the Championship”.
Differs from the Premier League
Squad costs will include wages for first-team players and coaching staff, amortised transfer fees and agents’ fees. The SCR framework will replace P&S rules that have been in place in the Championship since 2017.
The Championship model differs from the Premier League’s version by allowing owners to inject up to £33 million across a three-year period into club revenues, although no more than £15 million can be added in a single season.
League One clubs also approved changes to the existing Salary Cost Management Protocol (SCMP) rules, with the aim of reducing losses and the reliance on owner funding in the division.
As part of the amendments to SCMP, the percentage of turnover that clubs in League One will be able to spend on wages has been reduced from 60 per cent to 50 per cent, with manager costs to now also be included within the SCMP c alculation.
League One Clubs also approved a change to remove the staggered approach to equity injections in the division, meaning that all equity injections will be included within the calculation at 50 per cent.
China broadcaster secures FIFA World Cup rights deal
China Media Group has agreed a broadcasting deal with FIFA covering the 2026 and 2030 men’s World Cups, ending uncertainty over television rights in China less than a month before the next tournament begins.
FIFA confirmed the agreement on Friday, and said the agreement also includes the 2027 and 2031 Women’s World Cups.
FIFA secretary general Mattias Grafström said: “The Chinese market is of very big importance to the global football community … we’re very happy and proud of our partnership with CMG to bring the World Cup to all fans in China.”
2026 rights worth $60 million
Broadcast rights for the 2026 tournament alone were valued at US$60 million, according to Chinese outlet The Paper. The deal follows a prolonged stand-off between FIFA and Chinese broadcasters ahead of the competition.
China is regarded as one of football’s largest television markets, with state media estimating that around 200 million people in the country follow the sport.
Botafogo seek bankruptcy protection and criticise Textor management
Botafogo have filed for bankruptcy protection after warning that financial pressures had begun to affect the club’s daily operations. The Brazilian club’s SAF said the measure was needed to preserve activities, meet obligations and protect the continuity of the sporting project.
In a statement, Botafogo said the company had faced mounting financial problems linked to asset seizures, FIFA-imposed transfer restrictions, accelerated debt repayments and liquidity shortages. The club added that the situation had created uncertainty over its short-term future.
The SAF also directed criticism at John Textor, whose Eagle Football holding company continues to control Botafogo and Olympique Lyon. Botafogo said there had been “a strong process of decapitalisation within the Eagle Group structure” in recent months.
Missing funds
Financial pressure on Botafogo has increased since Textor’s departure from the leadership of Eagle Football earlier this year. The club claimed more than BRL900 million (€154 million) had failed to return to Botafogo while financial support and investment had also stopped.
Botafogo said the lack of funding had affected the club’s ability to maintain operations and sporting competitiveness.