Financial Fair Play

[sawmiller]

Is this the same level/amount for all sides in one division, or is this based on income, expenditure etc? I expect we've freed up quite a bit of wage leeway now looking at our released list of players. Thanks in advance

[Brin]

Is this the same level/amount for all sides in one division, or is this based on income, expenditure etc? I expect we've freed up quite a bit of wage leeway now looking at our released list of players. Thanks in advance

This might help.....

UEFA Financial Sustainability Regulations (FSR), formerly Financial Fair Play (FFP), require clubs to not spend more than they earn and limit spending on wages, transfers, and agent fees to a set percentage of revenue (70% by 2025/26).


So looking at that if there is a League 2 club with a substantal fan base, they can spend up to 70% of their revenue as they like. Thing is, what is classed as revenue? Season Tickets? Corporate facilities? Replica Kits? Sponsorship? The list could go on and on.

[HensonsPRman]

This might help.....

UEFA Financial Sustainability Regulations (FSR), formerly Financial Fair Play (FFP), require clubs to not spend more than they earn and limit spending on wages, transfers, and agent fees to a set percentage of revenue (70% by 2025/26).


So looking at that if there is a League 2 club with a substantal fan base, they can spend up to 70% of their revenue as they like. Thing is, what is classed as revenue? Season Tickets? Corporate facilities? Replica Kits? Sponsorship? The list could go on and on.

Brin miles out the rules are:

For the 2026-2027 season, EFL League Two clubs will operate under tightened Salary Cost Management Protocol (SCMP) rules, which restrict player-related expenditure to 50% of turnover. These rules limit owner equity investments to 50% for wage expenditure and restrict the use of extra football income (like transfer fees) on player wages.

Key financial rules for League Two in 2026-2027:

SCMP Cap: Clubs are limited to spending 50% of their "turnover" (football income) on player wages, salaries, and agent fees.

Owner Investment Restrictions:

Investment over ?500,000 from owners is no longer fully available for spending. Only 50% of owner equity injections can be used for player-related expenditures.

Income Constraints:

Only 50% of extra football income?such as cup earnings, prize money, or player sales?can be used on the playing budget.

Independent Regulator Licensing:

Ahead of the 2027-28 season, League Two clubs will start applying for licensing under the new independent football regulator, requiring them to demonstrate sustainable financial plans during the 2026-27 season.

[sawmiller]

Thank you both. Guess these are aiming to halt the slide towards so many sides going bust. Assume TV income boosts the wage budget up to a point

[Brin]

Brin miles out the rules are:

For the 2026-2027 season, EFL League Two clubs will operate under tightened Salary Cost Management Protocol (SCMP) rules, which restrict player-related expenditure to 50% of turnover. These rules limit owner equity investments to 50% for wage expenditure and restrict the use of extra football income (like transfer fees) on player wages.

Key financial rules for League Two in 2026-2027:

SCMP Cap: Clubs are limited to spending 50% of their "turnover" (football income) on player wages, salaries, and agent fees.

Owner Investment Restrictions:

Investment over ?500,000 from owners is no longer fully available for spending. Only 50% of owner equity injections can be used for player-related expenditures.

Income Constraints:

Only 50% of extra football income?such as cup earnings, prize money, or player sales?can be used on the playing budget.

Independent Regulator Licensing:

Ahead of the 2027-28 season, League Two clubs will start applying for licensing under the new independent football regulator, requiring them to demonstrate sustainable financial plans during the 2026-27 season.

Cheers for that pal. I wonder how many clubs stay within the rules or better still, who will be the first to breach them? I bet there's more than one....

[Lolmorgan]

If you can get a very good Lawyer like Chelsea & Man C it doesn?t really matter.