League One clubs are seeking to introduce further spending restrictions to curb losses by limiting investment from owners. This follows a vote last summer to tighten rules, reducing spending limits from 60% to 50% of turnover and restricting owner equity injections for squad costs to 50%.
Two new models are reportedly under consideration: a fixed cap on owner investment or a system similar to the Premier League's squad cost rules. This latter option would involve a £1 levy for every £1 spent above 50% of revenue, with sporting sanctions for spending exceeding 60%. The money raised from such a levy would be redistributed among other clubs in the division.
Discussions for stricter controls have gained momentum after the Independent Football Regulator's 'State of the Game' report, published last month, revealed that 94% of clubs in the EFL and National League are loss-making. The report also indicated that 32 of 96 clubs would not survive a month without owner funding. Average losses per club in League One reached £7.5m last season, an increase from £5.3m the previous season.
The Professional Footballers’ Association (PFA) launched a legal challenge in August against the existing rules, arguing that clubs had not adhered to their committee membership terms. Previous attempts by League One and League Two to introduce salary caps were withdrawn in 2021 after PFA intervention.
While some clubs, such as Reading and Peterborough, advocate for tighter controls, others like MK Dons and Wycombe oppose them. It is currently unclear if any new proposal would achieve the two-thirds majority required for introduction. The EFL has confirmed that discussions are ongoing, but formal proposals have not yet been presented to the clubs.