🤑😳 SQUAD COST RATIO: What does it mean for The Championship?

Added: 2026-05-23

[00:00:00]the basics. What is squad cost ratio?

[00:00:03]Now, squad cost ratio is the new financial rule, which means that any team playing in the Championship will be limited in their financial power to only be allowed to spend 85% of their total income revenue. Now, the club's total income revenue will be dictated by things like ticket sales, sponsorship deals, player sales. That will give you a big bucket of 100% and when the new laws take effect starting next season, the squad cost ratio will mean that out of your big bucket, you can spend 85% of that on agent fees, transfer fees, your wage bill. That is all you've got. At the start of each season, clubs have to submit their estimated revenues and their estimated costs to the EFL and these figures then signify what the maximum amount that club is able to spend. Compliance against that measure then gets measured later in the season, towards the end of the season in March.

[00:00:53]I believe the owners are going to be allowed to put in an annual cash boost of up to 10 million pound to support their club's spending ability.