The English Football League (EFL) has announced a significant update to its sanctions framework, granting it the authority to apply penalties imposed by Premier League independent commissions starting from the next season. This development is a direct response to the Leicester City case, which highlighted a gap in the EFL’s rules regarding the application of points sanctions.
The rule change follows a similar move by the Premier League, which was prompted by Leicester City’s appeal board ruling last September. The ruling determined that the Premier League did not have jurisdiction to charge Leicester City with breaching profitability and sustainability rules (PSR) for the 2022-23 season, as the club was in the EFL when the accounts were submitted.
The new framework will enable the EFL to apply sanctions imposed by top-flight independent commissions, while also allowing the Premier League to apply sanctions imposed by EFL panels. This development aims to ensure that clubs in both leagues are held to similar standards and are subject to consistent regulatory frameworks.
Under the revised rules, EFL clubs will be required to submit an estimated PSR calculation in March for the current season, followed by their audited accounts and final PSR calculation for the previous season in December. The EFL will retain the ability to take pre-emptive action if a club is forecasting a breach, including requiring business plans or player sales.
The EFL has also confirmed that discussions are ongoing regarding the potential introduction of a UEFA-style squad cost ratio system. This system would limit clubs to spending a set percentage of their income on player-related costs, further enhancing the financial sustainability of clubs in the EFL.
This rule change marks a significant step forward in ensuring that clubs in the EFL are subject to a robust and effective regulatory framework, promoting financial responsibility and fair competition within the league.
