Championship clubs, including Sunderland, have voted to introduce significant changes to their Profit & Sustainability Rules (PSR) in a move that could reshape financial oversight across English football. The key amendment, agreed upon at an Extraordinary General Meeting (EGM), allows the EFL to enforce sanctions imposed by the Premier League on clubs even after they are relegated. This closes a longstanding loophole that permitted clubs to potentially evade penalties by dropping into the second tier.
Starting from the 2025/26 season, relegated clubs facing punishment from the Premier League’s independent commission will still be held accountable once they enter the Championship. The EFL’s official statement clarified that: “As a result of the changes agreed today… the EFL will be able to apply a sanction imposed by the Premier League’s independent Commission.”
Previously, clubs only needed to submit profit and sustainability data for three seasons, regardless of league status during that period. The updated rule mandates that clubs file their audited financial accounts and PSR assessments with the league they are in each December, following an initial estimate submitted in March.
Furthermore, if the EFL identifies a projected breach in March, it can take preventive steps — such as enforcing a business plan or requiring player sales during the next transfer window. The EFL said these updates are designed to ensure smoother transitions between leagues and uphold financial fairness.
In parallel, discussions are ongoing regarding a broader shift to a “Squad Cost Ratio” model, which would cap spending on player costs as a percentage of club revenue. This system is already under a trial phase in the Premier League and could soon become the standard across the Championship as well.
For Sunderland, however, the changes are of little immediate concern. The club appears to be operating well within the existing financial guidelines. At a recent supporter collective meeting, Chief Business Officer David Bruce assured fans that the club is financially stable. “The Club has a lot of working space regarding PSR,” he said.
Sunderland’s latest accounts showed an £8.1 million operating loss for the 2024/25 season — a slight improvement — and didn’t yet include Jack Clarke’s transfer income. The club’s financial future has also been bolstered by the recent sale of Tommy Watson to Brighton.
