Tottenham are battling to secure their Premier League survival and would face strict new Championship spending rules if relegated, after EFL clubs voted through a big change
Tottenham Hotspur would face complying with new rules should they suffer relegation from the Premier League to the Sky Bet Championship. Second-tier clubs have today approved significant amendments to the league's financial regulations, with backing from 20 of the division's 24 sides.
Clubs have endorsed proposals to replace the existing profitability and sustainability (P&S) framework with a squad cost ratio model (SCR) from next season. The revised regulations will bring the division into closer alignment with the Premier League's new rules and restrict expenditure on football costs to 85 per cent of total revenue.
SCR expenses are directly linked to the first team, encompassing player wages, manager salaries, agent fees, and the annual amortisation of player transfer fees. They are combined into a single budget pool that reflects the actual cost of the squad.
Should Championship clubs fail to adhere to the regulations, then a non-negotiable sporting sanction is imposed in the season that a breach occurs. Breaching limits triggers an automatic six-point deduction.
The point deduction escalates according to the severity of the breach. For every £6.5 million spent above the threshold, an additional one-point penalty is applied.
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In a statement, the EFL said: "Championship Clubs have approved a new Squad Cost Rules (SCR) financial framework that will replace the current Profitability and Sustainability (P&S) rules from Season 2026/27.
"During the course of the 2025/26 season, Championship Clubs have been operating an SCR system in shadow, alongside the P&S Rules, to allow Clubs to assess the proposed rule changes and provide the League with further information to enable wider consultation with stakeholders.
"The SCR system limits Clubs spending on Player and Manager-related costs (including transfer fees) to a set percentage of their income, alongside a limited level of owner funding.
"From the 2026/27 season the SCR allowance for Clubs will be set at 85% of income, with a flexible equity top-up allowance of £33m over a three-year period (up to a maximum of £15m a season).
"The new framework allows for real-time monitoring during the season, rather than reviewing ‘after the event’, with the aim of giving Clubs greater clarity and the Club Financial Reporting Unit earlier visibility over Clubs’ financial position. The framework also includes safeguards around commercial deals linked to Owners or associated parties."
The changes are intended to create a simpler and more responsive system of cost control within the Championship.
A version of the SCR framework is also to be introduced in the Premier League for the 2026/27 season, bringing closer alignment between the divisions.
Spurs return to Premier League action next week with their top-flight status still hanging in the balance. They currently sit two points clear of the relegation zone, having amassed just 38 points from 36 fixtures this season, not securing a league victory in 2026 until April 25.
Monday's 1-1 draw with Leeds United saw Tottenham squander the opportunity to extend their advantage over bottom-placed West Ham United. The Hammers suffered a 1-0 defeat to Arsenal on Sunday and at one point during the Spurs versus Leeds encounter, trailed by five points with two matches left to play.
However, that margin has now narrowed to two, with the Hammers facing Newcastle United on Sunday afternoon before Spurs take on Chelsea at Stamford Bridge on Tuesday evening.
When questioned about his predominant emotion while watching his former club fight against relegation, ex-Spurs chairman Daniel Levy confessed on Thursday: "Emptiness...I'm feeling the pain but I'm optimistic that we'll get through it.
"It's been very, very difficult - Spurs is in my blood. I could never have envisioned this at the beginning of the season. Obviously incredibly disappointed. Let's look forward and very much hope that next season we're still in the Premier League."
He added: "I'm optimistic that we will remain in the Premier League. I think Tottenham has a great coach, and all the fans and all the employees and everyone now are behind this coach.
"Let's hope that the players can do it for the last two games. Like every fan there'd be emptiness in the stomach. But, we will bounce back.
"Let's be optimistic and hope that doesn't happen. I just hope at this moment in time that Tottenham manages to remain in the Premier League."