Time frame for Leeds United’s transfer spending rules as key change is agreed

Spending has been a hot topic for English football clubs since the end of last season and the clock is ticking on the financial fate of Leeds United. Earlier this week, Premier League clubs announced their intention to test new systems governing spending, but the Championship has stalled ahead of such a test.

Instead, the EFL revealed that second-tier clubs have simply set themselves a New Year’s Eve deadline to decide on future cost controls. Currently, financial fair play in the EFL has adapted to the profit and sustainability approach that monitors allowable losses over a three-year cycle.

After failing to secure promotion last month, the Whites will need to sell players in this upcoming transfer window to ensure they stay within the rules. Chairman Paraag Marathe confirmed this after the play-off final defeat.

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EFL clubs are keen to investigate what could be the way forward for them, if not the current method. Leeda are among the Championship clubs who have agreed that change is needed in this area and have backed the new working group which will represent all 24 clubs before deciding the best course of action.

An EFL statement said: “At a combined divisional meeting today, League One and League Two agreed to review and update their set of Salary Cost Management Protocol (SCMP) rules. There was unanimous recognition among clubs that there was an immediate and acute need for reform to stem the growing losses faced by both divisions, currently averaging £5 million per club in League One and 1.5 million pounds in League Two.

“Clubs have committed to implementing the change and will consider the issue throughout the closed season. Separately, in the Championship, clubs have also committed to change and agreed in principle to target the end of the calendar year to determine how future cost controls will work in the division.

“Clubs will now consider several options to improve or replace the current profitability and sustainability rules through a new working group which will represent the views of all 24 clubs before deciding the most appropriate direction to go.”