The English Professional Footballers' Association (PFA) has launched legal proceedings against the English Football League (EFL) over changes to the salary cap rules in League One.
In May 2025, the EFL announced the replacement of the Profitability and Sustainability (P&S) framework with new Squad Cost Rules (SCR), effective from the 2026-27 season. In League One, these changes reduce the percentage of revenue clubs can allocate to player wages from 60% to 50%. For teams relegated from the Championship, the cap is set at 65% of their revenue in the first season in the third tier, down from 75% previously. The new framework now includes coach remuneration and limits to 50% the share of owner funding that can be allocated to wages. In a statement released on Tuesday, the EFL expressed its "concern and disappointment" at the PFA's action, arguing that the new rules do not represent a "major change" affecting players' employment conditions. "They aim to support responsible cost control and improve the financial sustainability of League One clubs," the statement reads. "This is not about undermining players' interests but creating a stable environment where clubs can meet their obligations and continue to invest in football."
A disagreement over procedure
The PFA, which represents professional footballers, disputes the implementation of these changes, arguing that the EFL cannot enforce the new measures "without full agreement" with the Professional Football Negotiating and Consultative Committee (PFNCC). In a statement, the union said: "We believe the process by which clubs voted to introduce these new measures, which will artificially restrict clubs' spending on player wages, does not comply with the consultation and agreement required by EFL members (alongside the PFA, the FA and the Premier League) within the PFNCC." The EFL responded that it "does not share the PFA's view" on this matter. A previous proposal to cap wages in League One and League Two at £2.5 million and £1.25 million respectively was scrapped in 2021 following a decision by an independent arbitration tribunal. The tribunal sided with the PFA, ruling that the caps were "illegal and unenforceable."
Oxford United blocked by new rules
Oxford United, who compete in League One, were placed under a temporary transfer embargo last month for breaching new regulations. The club is now unable to sign players, including on loan or free transfers, and has indicated it may take several months to comply with the requirements. According to
BBC Radio Oxford, Oxford United is taking time to assess the implications of legal action by the PFA and has yet to issue a public response. This situation arises amid growing tensions in English football over financial management, particularly in lower divisions. Trade unions and governing bodies frequently clash over regulatory approaches, as highlighted by the
controversial tenure of Gianni Infantino at FIFA, where issues of transparency and spending controls have been central to debates. Additionally, the expansion of the World Cup to 48 teams, as planned for 2026, is pushing competitions to their limits, as illustrated in a recent article on
the excesses generated by the tournament.