League One clubs can only spend half of their turnovers on wages
League One clubs have approved changes to financial rules with the aims of reducing losses and a reliance on owner funding.
The Salary Cost Management Protocol (SCMP) rules had previously seen third tier clubs able to use 60 per cent of their turnover on player wages.
Blackpool and their fellow League One sides will now only be able to spend 50 per cent of their turnover on salaries, with manager costs now also being included within the SCMP calculation.
However, clubs relegated from the Championship will be permitted to spend 65 per cent of turnover on wages during their first season in League One: a reduction from 75 per cent under the current rules.
A change was also approved which would 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.
The EFL explained: “This means that if an owner invests £500k into the club, a maximum of £250k (in addition to that already permitted as a percentage of turnover) can be spent on wages.
“This approach is intended to encourage investment into other areas of club operations, such as infrastructure and youth development.
“The new rules further strengthen financial control and are another important step towards helping clubs to operate on a more sustainable basis.”
Changes to the divisional cost control rules require a voting majority of two-thirds of clubs.
The EFL added that the full squad cost rules and salary cost management protocol rules in operation for the 2026/27 season will be published in due course.