EFL chief: losses unsustainable as PFA fights wage cap
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- Trevor Birch issued an open letter warning EFL club losses created a "systemic insolvency risk" for the football pyramid, after the PFA began legal proceedings over financial rule changes in League One.
- The EFL's new Squad Cost Rules, replacing the existing Profitability and Sustainability framework from 2026-27, cut the League One wage cap from 60% to 50% of turnover.
- Average League One player spending rose from £3.8m to £8.0m over five seasons, with average losses climbing from £2.3m to £7.3m; last season's average Championship losses hit £21.6m.
- The PFA argues the league cannot implement the changes without "full agreement" from the Professional Football Negotiating and Consultative Committee, having already forced withdrawal of a 2021 salary cap plan on similar grounds.
- Sheffield Wednesday spent most of last season in administration after owner Dejphon Chansiri withdrew funding, receiving an 18-point deduction for financial breaches.
- Birch called for a "fairer and more equitable distribution model" with the Premier League, noting the solidarity agreement has been unchanged since 2019.
Why it matters: With League One losses more than tripling from £2.3m to £7.3m over five seasons and the PFA already having torpedoed a 2021 salary cap plan through legal action, the EFL faces an existential fight that could either stabilize or accelerate the slide toward insolvency at lower-division clubs.
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