West Bromwich Albion’s alleged breach of profitability and sustainability rules (PSR) has thrown the Championship into a realm of uncertainty with less than three weeks before the regular season finishes.
The breach was first reported by The Telegraph on Monday, with West Brom currently 21st in the Championship – just two points above the relegation zone – with four games to go.
A points deduction is one possible outcome, and together with football finance expert Professor Rob Wilson, The i Paper looks at the crucial numbers, factors and statements behind this alleged breach.
The numbers we know
The EFL’s financial rules state clubs cannot exceed a £41.5m loss over a rolling three-year period. It had previously been £39m before clubs reportedly agreed to the slight increase last season.
West Brom announced an operating loss of £17m for 2024-25 back in March, down from £31m the previous year and taking them to a combined loss of £55.6m since July 2022.
The crucial number we don’t know…
Though it appears West Brom have exceeded the threshold, £55.6m is not the figure that counts. The club can deduct money for permitted expenses including infrastructure and the academy, meaning the true, final figure is not yet known.
The Telegraph says the amount of West Brom’s breach is “not thought to be significant and only a minor number above loss limits”.
West Brom meanwhile believe they have “fully complied” with the rules, adding: “The club will continue to cooperate with the EFL’s Club Financial Reporting Unit and looks forward to resolving this matter.”
Wilson’s own analysis, without access to West Brom’s detailed accounts, suggests the club are not much over the limit – possibly around £1m.
“None of us know the actual figure,” Wilson says. “But in football finances terms, around £1m is relatively minor and not the huge overspend that would normally lead to severe punishments.
“The real concern is not the breach itself, but the timing…”
Why the timing of this alleged breach matters
The final day of the regular Championship campaign is 2 May, less than three weeks away.
This matters because any potential points deduction is likely to be followed by an appeal, particularly if it plunges West Brom into the relegation zone. They are currently two points behind Blackburn Rovers and Portsmouth, and two ahead of Oxford United, who occupy the final relegation spot in 22nd.
Any deduction and subsequent appeal could therefore make the final table not so final. For an idea of timeframe, Everton were docked 10 points by the Premier League in November 2023, and only saw that reduced to six on appeal in late February – a gap of more than three months.
This potential case though would not have months to reach a resolution. The EFL announces 2026-27 fixtures on 25 June, and the new season then starts 14-16 August.
And in a scenario where West Brom stay up and are instead handed a points deduction next season, it is unlikely at least one relegated club would take that lightly if those points were crucial in the battle to remain in the Championship.
How many points could West Brom be deducted?
West Brom’s relegation rivals Leicester City are in freefall and primed to go down to League One. They are 23rd in the Championship table and five points behind the Baggies.
The Foxes were docked six points in February for breaching PSR, and saw their appeal rejected last week.
Leicester exceeded the permitted limit by £20.8m. Precedent would therefore suggest West Brom get a smaller points deduction – if any – should their breach prove only minor.
A breach below £2m reportedly results in a three-point penalty, while the EFL could also take into account West Brom’s efforts to reduce losses and make the punishment less severe.
Read more
- Michael Hincks: Leicester City face a fate worse than relegation
- Michael Hincks: West Brom are a complete shambles of their own making
What could work in West Brom’s favour
As West Brom’s statement alluded to, the club have been in discussions with the EFL and this cooperation could have an impact on the possible outcome.
“On the one hand, rules are rules, if you go over the limit then you would expect a charge,” says Wilson.
“On the other hand, you also have West Brom working closely with the EFL, operating under a business plan and trying to stay compliant. That cooperation typically works in favour of the club when it comes to final decisions.”
Could West Brom be punished this season?
With precious little time left in the season, Wilson apologetically says “possibly” regarding any potential punishment happening this season.
“I don’t think it’s going to be as dramatic as the situation perhaps seems to be unfolding,” he adds.
“If they are, not necessarily severely. A points deduction is no guarantee, and it will ultimately come down to how serious the breach is. Regardless, they have lost an incredible amount if they are around that limit.”
