EFL confirm £39m rule adjustment that could impact Sunderland and Championship rivals from 2025-26

EFL confirm £39m rule adjustment that could impact Sunderland and Championship rivals from 2025-26

There are several big changes coming to the Profit and Sustainability Rules in the Championship soon

Sunderland, along with several other Championship clubs, have agreed to adjust the current Profit and Sustainability Rules (PSR).

The headline from the rule change comes in the form of the loss limit (technically) increasing over a three-year period and means, in theory, that Sunderland and their Championship rivals can spend more money.

The Championship has opted for three key changes rather than a full-scale overhaul. This decision comes after ongoing discussions throughout the season among EFL clubs, who have become increasingly worried about the growing financial divide between the Premier League and the Championship. Issues such as the impact of parachute payments and the financial imbalance between clubs have been central to the talks.

The decision to tweak, rather than completely revamp, the PSR rules follows a similar move by Premier League clubs, who have also voted to retain their existing regulations for at least another year. For the Championship, three main adjustments were agreed upon, which will affect clubs from next season.

RULE ONE: The loss limit for clubs will now work out at around £41.5million over three years. This continues a change introduced this season, which technically raised the previous limit from £39million. This adjustment was initially made to account for inflation and the rising cost of living, and it will now be extended for the next cycle. EFL sources have confirmed to The Echo that though losses over £39million are forbidden and the main loss limit threshold hasn’t increased, the cost of living inflation has. This season, £2.5million on top of the initial £39million was permitted. From next season and beyond, £3.5million will be allowed as well as the original £39million, thus allowing clubs like Sunderland more wriggle room.

RULE TWO: All Championship clubs will now be required to submit a profit and sustainability calculation at the end of the second year of a three-year cycle. Previously, this was only mandatory for clubs under scrutiny by the EFL. Starting next season, all 24 Championship clubs will need to comply with this requirement.

RULE THREE: There will be a change in how add-backs, such as investments in youth development and women’s teams, are audited in the PSR calculations. While certain expenses like running an academy and managing women’s teams have not been factored into PSR calculations in the past, the new tweak aims to clarify how these costs are audited and included.