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

The EFL is moving away from PSR-style loss limits to a Squad Cost Ratio (SCR) system. From 2026/27, Championship clubs can spend roughly 85% of their football revenue on squad costs - wages, transfer fees and agent fees - instead of being judged on three-year losses after the fact.

Status check: SCR was approved by Championship clubs in May 2026 and becomes enforceable in 2026/27. For the rest of 2025/26 it runs in shadow - PSR is still the binding rule today.

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.

What it means for your club

Pick a club for an instant breakdown: estimated revenue, the 85% SCR limit, estimated squad cost, and whether they have spending headroom.

Club
AFC Wimbledon
Barnsley
Birmingham City
Blackburn Rovers
Blackpool
Bolton Wanderers
Bradford City
Bristol City
Burnley
Burton Albion
Cardiff City
Cardiff City
Charlton Athletic
Derby County
Doncaster Rovers
Exeter City
Huddersfield Town
Hull City
Leyton Orient
Lincoln City
Luton Town
Mansfield Town
Middlesbrough
Millwall
Northampton Town
Norwich City
Peterborough United
Plymouth Argyle
Plymouth Argyle
Port Vale
Portsmouth
Preston North End
Queens Park Rangers
Reading
Rotherham United
Sheffield United
Southampton
Stevenage
Stockport County
Stoke City
Swansea City
Watford
West Bromwich Albion
Wigan Athletic
Wolverhampton Wanderers
Wrexham
Wycombe Wanderers

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

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.