PFA launches legal action against EFL over League One salary cap changes

The Professional Footballers' Association has launched legal proceedings against the English Football League over changes to salary rules for League One, the PFA said on Tuesday, days before the 2026-27 League One season kicks off on Saturday.

The EFL announced in May that Squad Cost Rules (SCR) will replace the Profitability and Sustainability (P&S) financial framework from 2026-27. Under the new framework League One clubs would be limited to spending 50% of turnover on wages, down from 60%, while teams relegated from the Championship may spend 65% of turnover on wages in their first season in the third tier, down from 75%. Manager pay is included in the new calculations and clubs would be restricted to spending no more than 50% of owner cash injections on wages.

In a statement on Tuesday the EFL said it was "concerned and disappointed" by the PFA's legal challenge and that it "did not consider the new rules to be a major change in the regulation of the league affecting a player's terms and conditions of employment". The league added: "They are designed to support responsible cost control and improve financial sustainability across League One." The EFL also said: "This is not about undermining players' interests. It is about creating a stable environment in which clubs can meet their obligations and continue to invest in football." The EFL said it would continue to "engage constructively with the PFA and other stakeholders".

The PFA argued that the EFL could not implement the changes "unless there was full agreement" with the Professional Football Negotiating and Consultative Committee (PFNCC). "We believe that the process through which clubs have voted to bring in these new measures, which will artificially restrict and tighten what clubs can spend on player wages was not in line with the consultation and agreement process required by the EFL's membership (alongside the PFA, FA and Premier League) of the Professional Football Negotiating and Consultative Committee," a PFA statement said.

The EFL responded that it "did not accept that the PFA's position was correct". The article notes a previous attempt to introduce salary caps in 2021 was withdrawn after an independent arbitration panel upheld a PFA claim that proposed limits were "unlawful and unenforceable"; those earlier proposals would have set a £2.5m ceiling for third-tier salaries and £1.25m for fourth-tier sides.

The legal challenge will be live as clubs prepare for the 2026-27 League One season, which kicks off on Saturday.