Trevor Birch, EFL chief executive, warns that the level of losses sustained by clubs creates "a systemic insolvency risk" for the football pyramid after the PFA launched legal proceedings over new financial rules. He notes average player spend in League One rose from £3.8m to £8.0m and losses from £2.3m to £7.3m over five seasons. The EFL plans to replace the Profitability and Sustainability framework with external Squad Cost Rules from 2026‑27, cutting wage spend limits from 60% to 50% of turnover.

The PFA argues changes need full agreement via PFNCC and could suppress wages, citing a previous salary‑cap plan withdrawn in 2021. Birch acknowledges player concerns but stresses that inaction perpetuates club challenges, especially in the Championship where average losses reached £21.6m. He calls financial security essential for contract honouring, timely wages, facility investment and long‑term career opportunities.

Recent enforcement highlights the stakes: Oxford United faced a registration embargo, while Sheffield Wednesday’s near‑administration exposed competitive risks. Birch urges a "fairer and more equitable distribution model" with the Premier League and warns litigation won’t solve the underlying financial model. He stresses fans want ambition, real hope, and credible competitions that endure beyond single ownership cycles.

Key entities: EFL, PFA, Trevor Birch, 60%, 50%, £21.6m.