EFL confirm new rules amid Oxford United relegation

The U’s will compete in the third tier of English football next season after suffering relegation from the Championship this term, finishing 22nd in the league and four points from safety.

With their relegation, the club will naturally take a financial hit which, with a new stadium and upgrades to the academy in the pipeline, will be a challenge for the U’s to navigate.

Last week, the EFL confirmed changes to the Salary Cost Management Protocol (SCMP) rules in League One and League Two.

In a statement, the EFL stated: “League One Clubs approved changes to the existing Salary Cost Management Protocol (SCMP) rules, with the aim of reducing losses and the reliance on owner funding in the division.

“The long-standing SCMP rules limit spending on player wages to a percentage of a club’s turnover.”

Oxford United’s Cameron Brannagan celebrates scoring (Image: Steven Paston/PA Wire)

The changes mean that clubs in League One will now only be able to spend 50 per cent of their turnover on wages, compared to the 60 per cent previously permitted.

However, the rules differ for clubs relegated from the Championship who will be able to 65 per cent of turnover on wages, compared a previous 75 per cent.

In addition to these rules, the EFL also confirmed further updates: “League One clubs also approved a change to remove the staggered approach to equity injections in the division, meaning that all equity injections will be included within the calculation at 50%.

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“As an example, this means that if an owner invests £500k into the club, a maximum of £250k (in addition to that already permitted as a percentage of turnover) can be spent on wages.

“This approach is intended to encourage investment into other areas of club operations, such as infrastructure and youth development.”

Oxford United manager Matt Bloomfield reacts following the Sky Bet Championship match at the bet365 Stadium, Stoke (Image: Martin Rickett/PA Wire)

Speaking on BBC Radio Oxford’s podcast The Dub, EFL pundit and Oxford United fan, George Elek, reviewed the changes.

“It transpires that this has been in the works for quite a long time and that this won’t be a shock to anybody at the club,” Elek said.

“I’m sure that early budgetary conversations had factored this in. This wasn’t one of those things that suddenly came out of nowhere to impact everything.

“It might mean that trying to get back up this season is going to be easier than what comes after, but it gives us time to, I guess, cost effectively if we need to, plan for next summer rather than having to immediately bring the wage bill down to that degree.

“I’d say no cause for alarm and a silver lining in there that we get special dispensation after relegation.”