The Professional Footballers' Association (PFA) has initiated legal proceedings against the English Football League (EFL) regarding changes to salary caps in League One. In May, the EFL introduced Squad Cost Rules (SCR) to replace the Profitability and Sustainability (P&S) framework from 2026-27, reducing wage spending limits from 60% to 50% of turnover. Relegated clubs now face a 65% cap (down from 75%) in their first season. Manager pay is included, and clubs cannot exceed 50% of owner funding on wages. The EFL defended the rules as promoting financial sustainability, stating they were not aimed at player terms. The PFA argued the changes bypassed required consultation with the Professional Football Negotiating and Consultative Committee (PFNCC), claiming the process was unlawful. A prior 2021 proposal for strict salary caps (£2.5m for League One, £1.25m for League Two) was withdrawn after the PFA challenged it as unenforceable.

The EFL emphasized its intent to engage constructively with stakeholders but maintained the rules were not a major shift in player regulations. They highlighted the need for cost control amid financial pressures. The PFA countered that the changes imposed artificial restrictions without proper agreement, undermining collective bargaining. They stressed that salary cap implementation required unanimous PFNCC approval, which was not obtained.

The dispute centers on balancing club sustainability with player interests. The EFL views the rules as necessary for long-term league health, while the PFA insists on collaborative governance. Both sides have pledged further dialogue, though the legal challenge suggests deepening tensions. The outcome could set precedents for financial regulations in lower tiers of English football.

Earlier attempts to enforce salary caps faced legal barriers, underscoring the complexity of such reforms. The current case highlights the tension between profitability demands and player welfare in non-premier league structures.