The Professional Footballers’ Association (PFA) has initiated legal action against the English Football League (EFL) to challenge updates to salary restrictions in League One. The EFL recently declared that Squad Cost Rules will supersede the current Profitability and Sustainability framework starting in the 2026-27 season.
These updates lower the permissible wage-to-turnover ratio for League One clubs from 60% down to 50%. Furthermore, squads dropping down from the Championship will see their initial limit adjusted from 75% to 65%. The updated policy also incorporates manager salaries and limits owner-injected capital spending on player wages to 50%.
The EFL expressed disappointment over the challenge, asserting that the updates prioritize long-term financial stability rather than harming player interests. They maintain that the changes do not constitute a fundamental shift in employment conditions. Conversely, the PFA contends that these measures were implemented without the necessary consensus from the Professional Football Negotiating and Consultative Committee, as required by existing agreements.
The EFL denies the PFA’s interpretation of the consultation process. This friction mirrors a 2021 dispute where an independent arbitration panel ruled previous salary cap proposals to be unenforceable after the PFA intervened.
