Championship clubs have agreed to implement Squad Cost Rules (SCR) instead of PSR next season
Steve Gibson, owner of Middlesbrough(Image: Getty Images)
Middlesbrough will have to comply with new financial regulations next season, regardless of the outcome of Southampton’s disciplinary hearing over Spygate.
Boro were beaten by Southampton in the Championship play-off semi-final, which would ordinarily condemn them to another season in the second tier. However, due to the ongoing case against Southampton, there remains a possibility that Boro are reinstated to the play-off final.
Regardless though, Boro will have new Squad Cost Rules (SCR) to follow next season, after the EFL announced they were changing their financial regulations from the start of next season, bringing them in line with the Premier League, who will also switch to a similar system to replace profit and sustainability.
The change in the Championship was agreed by clubs after 20 of the 24 clubs voted in favour. It needed 16 votes in favour to pass.
The changes mean that from next season, the SCR allowance for clubs will be set at 85% of income, with a flexible equity top-up allowance (owner funding) of £33m over a three-year period (up to a maximum of £15m a season).
Squad costs cover player and head coach wages, agents’ fees and amortisation or impairment of transfer fees. They do not include the wages of any other staff members at a club, including any other coaches.
During the course of the 2025/26 season, Championship clubs, including Boro, have been operating a SCR system in shadow, alongside the P&S Rules, to allow clubs to assess the proposed rule changes and provide the EFL with further information to enable wider consultation with stakeholders.
After the changes were voted in, the EFL statement said: “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.”
The Premier League’s changes are very similar to those that will be implemented in the Championship. Their SCR allowance is set at 85% too.
