EFL chief warns league losses are unsustainable as PFA sues over wage rules

EFL chief executive Trevor Birch issued an open letter warning that the escalating deficits of clubs pose a systemic insolvency threat to the football pyramid. His comments follow the Professional Footballers' Association’s decision to sue the EFL over proposed changes to financial rules in League One, where the new Squad Cost Rules will lower the permissible wage-to-turnover ratio from 60% to 50% starting 2026-27. Birch noted that over five seasons average player costs in League One have more than doubled, while losses have surged from £2.3 million to £7.3 million, and Championship clubs reported average losses of £21.6 million last season.

He stressed that financial health and player protection are inseparable, and that without reforms clubs risk defaulting on contracts and losing community ties. While acknowledging the PFA’s concerns about wage suppression, Birch warned that litigation will not address the deeper issue of a financial model that relies on owners covering perpetual losses. He called for a fairer revenue-sharing arrangement with the Premier League to improve sustainability.