Following a commitment made by League One and Two Clubs in the summer to support proactive measures to stem financial losses, representatives from the Divisions have today agreed amendments to Salary Cost Management Protocol (SCMP) rules.

The first SCMP reporting period for Clubs under the new rules will be the 2025/26 season.

SCMP is the Financial Fair Play framework in place for Clubs in Leagues One and Two and sets out the percentage of a Club’s turnover that can be spent on player-related expenditure. In League One this is set at 60%, and at League Two it is 50%.

The key changes agreed include a staggering of the amount of owner equity injections that can be included in the calculation, alongside the inclusion of some under-21 players who are deemed established first team players, which will be based on the number of appearances (start and substitute) made.

Another change relates to how other specific football income – including cup income and competition prize money – is recognised within the calculation. This will now be included in a Club’s turnover at the relevant SCMP percentage for their division (League One 60%, League Two 50%), whereas previously this income was included at 100%.

In agreeing to the amendments, Clubs recognise that decisions to invest have to address all areas of Club operations, not just on field matters, and these rule changes will help ensure they can work to that objective. 

Separately, Clubs in the Championship are continuing their discussion in respect of potential changes to Financial Control rules for the division, with further updates expected in the early part of 2025.

EFL Statement: Changes to financial controls in Leagues One and Two approved

EFL Statement: Changes to financial controls in Leagues One and Two approved