PFA starts legal proceedings over League One salary cap

What the report says

The Professional Footballers’ Association has begun legal proceedings against the English Football League over planned changes to salary cap-style controls in League One, according to BBC Sport. The dispute centres on new Squad Cost Rules due to take effect from the 2026-27 season, which would replace the current Profitability and Sustainability framework.

Under the revised system, League One clubs would be allowed to spend a smaller share of turnover on wages, falling from 60% to 50%. Clubs relegated from the Championship would also see their first-season wage allowance reduced, while manager pay would be included in the calculation and owner cash injections would be capped at 50% for wage spending. The EFL said the new framework is intended to support cost control and financial sustainability across the division.

In response, the PFA argued that the league cannot introduce the changes without full agreement through the Football Negotiating and Consultative Committee, and said the voting process used by clubs was not consistent with that requirement. The EFL said it was disappointed by the challenge and did not accept the union’s position.

BBC Sport also noted that a previous attempt to introduce salary caps in League One and League Two was withdrawn in 2021 after an independent arbitration panel upheld the PFA’s view that the caps were unlawful and unenforceable. The latest dispute matters because it could affect how clubs manage wages and spending in the third tier, with the season set to begin on Saturday.