The Squad Cost Rules (SCR) are designed to avoid discouraging vital long-term investment, ensuring spending on areas such as youth development, academies and infrastructure remains supported rather than penalised.

Within the SCR, permanently contracted players under the age of 21 do not count towards the calculation unless they are classed as an ‘Established Under 21 Player’.

For a player to become an ‘Established Under 21 Player’, any of the following would apply:

They are an under-21 player who has at least 10 starts in senior first-team matches in a major league or competition, such as the Championship, Premier League, top European competitions, or similar leagues abroad.
They are an under-21 player who is on loan at the Club, even short-term (for example, an emergency goalkeeper loan).
They are an under-21 player who is paid more than £300,000 per year, unless they are a homegrown ‘Club-developed’ player.

If a player reaches 10 starts during the current season, they do not immediately become an Established Under 21 Player. They will only be treated that way from the next season’s financial submission (unless they meet the high-salary rule). The intention of this rule is to encourage Clubs to provide opportunities for young players and to not be penalised for doing so.

Costs incurred through the day-to-day running of a Club’s Academy, spending on Academy facilities and education and welfare costs for young players are not included in the calculation.

Transfer fees paid relating to Under-21 players are included in the SCR calculation, as are transfer fees received. For example, if a Club sells an academy player, the transfer compensation received can be included within the SCR calculation.

Financial Regulation

Squad Cost Rules (SCR) - Championship

Squad Cost Rules FAQS