West Brom deducted two points for breaching EFL profit and sustainability rules

West Brom have been deducted two points for breaching EFL Profitability and Sustainability Rules after an independent panel found they exceeded the Upper Loss Threshold.

The sanction, announced on Friday, drops James Morrison’s side to 20th in the Championship table – six points above the relegation zone with two matches remaining.

The club has released a statement expressing disagreement with the decision and is considering an appeal.

“Following a two-day hearing which concluded on 23 April 2026, the EFL’s Club Financial Review Panel (CFRP) has published a decision which states that the Club has exceeded the Upper Loss Threshold for the three-year period ending 30 June 2025 and will therefore receive a two point deduction, effective immediately,” the statement read.

“At this stage, the CFRP has not published any written reasons for the decision. The Club disagrees with the CFRP’s findings and remains of the view that it has fully complied with the Profitability and Sustainability (P&S) Rules.

“The decision does not state the amount by which the Club is said to have exceeded the Upper Loss Threshold. West Bromwich Albion has not been informed of the quantum of the breach, save that this is less than £2m. This is therefore the smallest ever breach of the P&S Rules across the EFL Championship and the Premier League.”

The club’s statement explained that proceedings were brought by the EFL’s Club Financial Reporting Unit (CFRU) following a change in the CFRU’s approach to Community Development Expenditure.

“In 2023/24, the CFRU accepted that the Club was entitled to include in-kind donations of the Club’s facilities, staff time and resources to its official charity partner, The Albion Foundation, in its P&S calculation. Earlier this year, the CFRU informed the club that it had changed its approach and imposed a retrospective adjustment to the Club’s P&S calculation.

“Without the CFRU changing its approach to the Community Development Expenditure, the Club would not have breached the P&S Rules.”

The club added: “West Bromwich Albion has a right of appeal and is considering its options. The Club will provide further comment once it has received the written reasons. For now, we will settle this on the pitch.”

West Brom host second-place Ipswich Town on Saturday in the early kick-off. Their final game of the season on 2 May will be at the already-relegated Sheffield Wednesday.

West Brom have a better goal difference to Oxford United, who occupy the final relegation spot, with the side having scored six more goals this season.

The EFL’s statement said: “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 an alleged breach of Profitability and Sustainability (P&S) Rules.

“The report alleged that the Club had exceeded the Upper Loss Threshold of £39m over the three-year period ending in the 2024/25 season and recommended a two-point deduction in line with EFL sanctioning guidelines. The Club denied the allegations.

“Following a hearing on 22 and 23 April and having considered the Compliance Report in full alongside the Club’s responses, the CFRP determined that the Club’s losses did exceed the Upper Loss Threshold and imposed a two-point deduction, effective immediately.

“The Club may appeal the decision within 14 days of receipt of the full written reasons, as set out in Appendix 6 of the Regulations. If an appeal is lodged, the rules provide that it shall be heard within 28 days of submission.”