Championship clubs to vote on rules to widen gap in spending power to League One

• Second-tier clubs will vote on squad cost ratio system

• League One proposals would reduce spending on wages

EFL clubs will vote on Friday on significant changes to their financial regulations that would widen the gap in spending power between the Championship and League One. Championship clubs are voting on a proposal to align with the Premier League from next season by replacing their profitability and sustainability (P&S) rules with a squad cost ratio system, that would cap spending on player costs at 85% of football revenue.

The proposed change would permit an annual equity injection of about £10m to count towards a club’s revenue and increase spending capacity, whereas under P&S rules, losses are capped at £39m in the Championship over a three-year period.