West Bromwich Albion have been given a point penalty after the EFL confirmed their findings of a breach of the PSR.
West Brom were given a two point deduction (Image: Matt West/Shutterstock)
West Bromwich Albion have been handed a two-point deduction following an investigation into alleged breaches of the English Football League’s (EFL) profit and sustainability regulations. The update comes after the Baggies were formally charged by the EFL earlier this month.
The Championship team will receive an immediate two point deduction, dropping them from their current 18th place to 20th, just two places above the relegation zone.
West Brom only have two games left in the Championship this season, and the points deduction leaves James Morrison’s side six points clear of the bottom three.
The EFL confirmed the findings in a lengthy statement posted on Friday afternoon.
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“In March 2026, the EFL’s Club Financial Reporting Unit (CFRU) submitted a compliance report to the independent Club Financial Review Panel (CFRP) in relation to alleged breaches of Profitability and Sustainability (P&S) Regulations,” the EFL statement said.
“The report claimed the club had exceeded the loss cap of £39m over the three years to the 2024/25 season and recommended a two-point deduction in line with EFL sanction guidelines. The club denied the allegations.”
“Following public hearings on April 22nd and 23rd, and after reviewing the club’s responses and the full compliance report, CFRP has determined that the club’s losses exceed the loss cap threshold and has imposed a two point deduction with immediate effect.
“Sporting sanctions have been applied to the Championship table for the 2025/26 season.
“Clubs may appeal against a decision within 14 days of receiving full written reasons as set out in Appendix 6 of the Regulations. If an appeal is lodged, the Regulations provide that it will be heard within 28 days of its submission.
“The full written reasons will be published in due course.”
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West Brom released their own statement following the EFL’s two point deduction, confirming they were “considering their options”.
“Following a two-day hearing that concluded on 23 April 2026, the EFL’s Club Financial Review Panel (CFRP) has announced its decision that the club has exceeded its loss cap for the three years until 30 June 2025 and will therefore receive a two-point deduction with immediate effect,” an Albion statement said. “CFRP has not published its written reasons for its decision at this stage. The club disagrees with the opinion.” CFRP’s findings and its view that it is in full compliance with Profitability and Sustainability (P&S) rules remains. “The decision does not state the amount by which the club is said to have exceeded the loss cap threshold.” West Bromwich Albion were not told the amount of the breach, except that the damage was less than £2 million. “This therefore represents the smallest ever breach of P&S rules across the EFL Championship and Premier League. The action was brought by the EFL’s Club Financial Reporting Unit (CFRU) following a change in the CFRU’s approach to community development spending. In 2023/24, the CFRU has confirmed that clubs are entitled to include in-kind donations of club facilities, staff time and resources to The Club, which is their official charity partner.” In the calculation: “Earlier this year, CFRU notified the club that it had changed its approach and imposed a retrospective adjustment to the club’s P&S calculations. If CFRU had not changed its approach to community development spending, the club would not have been in breach of the P&S rules. The club will continue to support the great work of the Albion Foundation and its community programs. West Bromwich Albion is within its rights.”We are considering an appeal and are considering our options. The club will issue further comment upon receipt of the written reasons. “For now, we will resolve this issue on the pitch.”
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