What is the EFL Squad Cost Ratio (SCR)?

SCR is a financial rule limiting a Championship club's spending on its playing squad to a set percentage of its football revenue. From 2026/27 the limit is 85% of income, replacing the old PSR loss-based system.

How is SCR different from PSR?

PSR judged clubs on losses over a rolling three-year period. SCR instead caps squad spending as a proportion of current revenue, and is monitored during the season rather than after the fact.

How much can a Championship club spend under SCR?

Roughly 85% of football revenue on squad costs - wages, transfer fee amortisation and agent fees. Clubs may also use an owner equity top-up of up to £33m over three years, capped at £15m in any single season.

When do the SCR rules start?

SCR becomes enforceable from the 2026/27 season. During 2025/26 it runs 'in shadow' alongside PSR, which remains the binding rule for now.

Plain English. No jargon. The answer first.

EFL spending rules, explained

Q: What counts as squad cost under SCR?

Squad costs under SCR include player wages, transfer fee amortisation (the annual cost of a transfer fee spread over the contract length), and agent fees. Running costs like stadium upkeep or academy spending do not count.

Q: What happens if a club breaches the SCR limit?

Clubs that breach the SCR limit face EFL sanctions, which can include transfer embargoes, fines, or points deductions. The exact penalty depends on the scale of the breach and is determined by an independent panel.

Q: Do parachute payments help clubs under SCR?

Yes. Parachute payments count as football revenue, so clubs receiving them have a higher SCR allowance. A club on parachute payments might have an 85% limit of £90m+ rather than the £30-40m of a typical Championship club. But the allowance drops sharply once payments end.

From 2026/27, Championship clubs are capped at 85% of football revenue on squad costs — replacing the old PSR loss-based system. Below: how every club's position changes under the new rules.

PSR vs SCR: winners and losers by club

How each Championship club's compliance position changes when you switch from the old loss-based PSR to the new revenue-based SCR. Positive = under the limit; negative = over it. Click any club for the full breakdown. What is PSR and how does it differ from SCR? →

Club ↕	PSR headroom ↕	SCR headroom ↕	Change ↕
Birmingham City	−£27.4m	−£8.6m	▲ £18.8m
Blackburn Rovers	+£21.1m	−£7.2m	▼ £28.3m
Bristol City	−£15m	−£1.6m	▲ £13.4m
Burnley P	+£40.2m	−£21.4m	▼ £61.6m
Cardiff City	−£10.7m	−£17.1m	▼ £6.4m
Charlton Athletic	—	−£2.6m	—
Derby County	+£17m	−£4.4m	▼ £21.4m
Hull City	+£10m	−£25.2m	▼ £35.2m
Middlesbrough	+£600k	−£4m	▼ £4.6m
Millwall	+£7.6m	−£13.9m	▼ £21.5m
Norwich City	−£25.8m	−£14.7m	▲ £11.1m
Plymouth Argyle	+£36.9m	+£4.9m	▼ £32m
Portsmouth	+£29m	+£960k	▼ £28m
Preston North End	+£7m	−£7.6m	▼ £14.6m
Queens Park Rangers	+£5.2m	−£1.8m	▼ £7m
Sheffield United P	−£8.5m	+£17.7m	▲ £26.2m
Southampton P	+£20m	−£8.8m	▼ £28.8m
Stoke City	−£15.7m	+£5.2m	▲ £20.9m
Swansea City	−£12.6m	−£9m	▲ £3.6m
Watford	+£18.1m	+£16m	▼ £2.1m
West Bromwich Albion	−£4.2m	−£11.3m	▼ £7.1m
Wolverhampton Wanderers P	−£22.1m	−£15.8m	▲ £6.3m
Wrexham	—	+£8.4m	—

PSR figures are estimated adjusted losses vs the applicable 3-year limit (£39m base; higher for clubs with recent PL seasons). SCR headroom is squad cost vs the 85% revenue limit only. Click any column header to sort.

What the Change column means: it shows the shift in compliance position, not spending power. Large swings usually reflect Premier League history inflating the old PSR limit — not a real change in what clubs can spend. To see who can actually spend more, look at the SCR headroom column. What is PSR and how does it differ from SCR? →

What changed: PSR vs SCR

Old PSR system	New SCR system
Loss-based limits measured over three years	Revenue-based limit on squad spending
Punishes overspending after the fact	Monitored in real time, during the season
Open to distortion through creative accounting	Tied directly to football income
Outcome (a points deduction) often arrives late	Clubs see their position early and clearly

One nuance worth knowing: 85% is the Green Threshold, not a hard wall. In the Championship, clubs can lean on an owner equity top-up — up to £33m across three years, and no more than £15m in a single season — to invest a little ahead of revenue.

League One clubs: SCMP wage limits

League One clubs follow the Salary Cost Management Protocol (SCMP) — a wage-to-revenue cap — rather than SCR. See the full League One SCMP table →

Compare two clubs

Head-to-head spending power - the parachute-payment gap is where it gets interesting.

Wolves vs Norwich: Premier League money vs Championship regular Burnley vs Sheffield United: parachute club vs survivor Wolves vs Hull: the parachute payment gap West Brom vs Birmingham: the West Midlands SCR derby

Frequently asked questions

What counts as squad cost under SCR?

Player wages, transfer fee amortisation (the annual cost of a fee spread over the contract length), and agent fees. Running costs like stadium upkeep or academy spending do not count toward the SCR limit.

What is the owner equity top-up?

Championship clubs can invest owner equity on top of the 85% limit — up to £15m in a single season and no more than £33m across any rolling three-year window. This lets clubs spend slightly ahead of revenue if owners inject fresh capital, but it's a finite buffer.

What happens if a club breaches the SCR limit?

Clubs that breach face EFL sanctions, which can include transfer embargoes, fines, or points deductions. The penalty is determined by an independent panel based on the scale and persistence of the breach.

Do parachute payments help clubs under SCR?

Yes — significantly. Parachute payments count as football revenue, giving recently relegated clubs a much larger 85% allowance than their Championship peers. A parachuted club might have a limit of £90m+ versus £30–40m for a typical side. But the advantage evaporates once payments end, usually after two or three seasons.

How these numbers work. Revenue figures are drawn from clubs' most recent published accounts (mostly 2023/24) and public reporting. SCR is calculated on adjusted football revenue, which differs slightly from headline turnover, so every figure here is illustrative rather than audit-grade. Squad-cost estimates are marked estimated where not separately verified. Last reviewed 2026-05-17.