EFL Criticises PFA Legal Challenge Over League One Financial Control Reforms

The EFL has criticised the Professional Footballers' Association (PFA) after the players' union launched legal proceedings relating to approved changes to the League One Squad Cost Management Protocol (SCMP).

The revised regulations are intended to strengthen financial controls across League One, with the EFL arguing that they form part of wider efforts to improve sustainability and support responsible cost management among clubs.

According to the league, the proposed changes have been discussed extensively through the Professional Football Negotiating and Consultative Committee (PFNCC), including direct engagement with the PFA. However, disagreement remains over whether the reforms can be implemented without full agreement from all parties.

The PFA maintains that the League cannot proceed with the changes unless there is unanimous approval through the PFNCC process. The EFL has rejected that interpretation.

In its statement, the EFL noted that this is the second time in just over five years that the PFA has challenged attempts to reform financial regulations in League One.

In 2021, the PFA successfully argued that the introduction of a salary cap constituted a fundamental change to player employment conditions and therefore required formal agreement through the PFNCC. The EFL believes the latest amendments are different in nature and do not have the same impact on players' terms and conditions.

The governing body insists the reforms are aimed at addressing growing financial pressures facing League One clubs, many of which are experiencing rising costs, increasing losses and greater reliance on owner funding.

The EFL said the approved measures are designed to encourage responsible squad planning, strengthen financial management and reduce the risk of clubs spending beyond their means.

The organisation also stressed that the reforms are not intended to undermine players' interests but instead create a more stable environment in which clubs can continue to meet contractual obligations and invest in the game.

EFL chief executive Trevor Birch defended the changes and highlighted the importance of improving financial sustainability throughout the league.

He said: "Financial sustainability and player protection are not competing objectives — they go hand in hand. Put simply, these reforms are designed to make Clubs more sustainable.

"Stable Clubs are better placed to honour contracts, pay wages on time, invest in facilities and create long-term opportunities for players. But a rising tide of losses and growing reliance on owner funding increase risk for everyone.

"That is why delaying reform is a risk. Clubs need rules that help them plan responsibly and avoid spending beyond their means.

"With the Independent Football Regulator now operational, the game needs to show it can take credible action on sustainability itself, rather than wait for solutions to be imposed externally.

"League One and League Two Clubs operate in a very different financial environment from Clubs in the Championship and Premier League. The rules need to reflect that reality. These reforms are about helping Clubs compete responsibly, plan properly and remain sustainable for the communities they represent."

The EFL said it remains committed to constructive discussions with the PFA and other stakeholders but believes action is required to address the financial challenges facing clubs. The organisation added that its priority remains delivering a fair, competitive and financially sustainable league structure capable of protecting clubs, players, supporters and local communities over the long term.