West Brom were given an immediate two point penalty for breaching the EFL’s financial rules, meaning they are no longer at risk of relegation.
The Baggies have fallen from 18th place with 52 points to 20th place with 50 points, sitting six points above the drop zone with two games remaining.
That means West Brom only need one point from their last two games to secure their place in the Championship.
Saturday, April 25th 11am
12:30pm kickoff
James Morrison’s side host second-placed Ipswich Town on Saturday at 12.30pm, which will be broadcast live on Sky Sports, with the final game of the season at relegated side Sheffield Wednesday on May 2.
West Brom have a huge lead on goal difference over Oxford United, who occupy the final relegation spot, with the Baggies six goals ahead of The U’s.
Matt Bloomfield’s side’s final two games are at home to bottom-of-the-table Sheffield Wednesday, before taking on promotion-chasing Millwall on the final day.
West Brom immediately issued a statement saying they were considering options regarding an appeal, which must be lodged within 14 days of receiving full written reasons, but added: “For now we intend to resolve it on the pitch.”
Albion said it disagreed with the findings of the independent Club Financial Review Panel (CFRP) and insisted the club complied with the league’s Profitability and Sustainability (P&S) regulations.
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Why was West Brom deducted points?
The EFL’s Club Financial Reporting Unit (CFRU) claimed the club had exceeded the allowed loss limit of £39m over the three years to the end of the 2024-25 season.
CFRP determined that the loss cap threshold had been exceeded and applied a penalty.
Sky Sports News understands that the main point of disagreement between the EFL and West Brom was how the interest payments on the loan taken out by the previous owners should be classified.
New owners Birkle have paid around £5m in interest during the accounting period on loans of more than £20m taken out by former owner Lai Guochuan, but felt strongly that these payments belonged to the owners, not the club. It therefore argued that these amounts should not be included in the club’s PSR calculation.
However, the court ruled that interest must be included in the PSR calculation as it is a fundamental part of the amount spent and still owed by the club.
A statement from the EFL confirming the points deduction 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 alleged breaches of Profitability and Sustainability (P&S) Regulations.
“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 maximum loss threshold and has imposed a two point demerit 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 receipt of 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.”
What was West Brom’s reaction?
West Brom “oppose” the decision and are currently considering whether to appeal.
The West Midlands club thought they had secured the Championship with a 3-0 home win over Watford on Tuesday, but are now back in the fight for survival.
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A statement from the club said: “Following a two-day hearing that concluded on 23 April 2026, the EFL’s Club Financial Review Panel (CFRP) has announced the decision that the club will effectively receive a two-point penalty immediately for exceeding its loss limit for the three years until 30 June 2025. At this stage, the CFRP has not published written reasons for its decision. The club does not agree with this decision.” CFRP maintains its view that its findings are fully compliant with Profitability and Sustainability (P&S) regulations.
“The decision does not state the amount by which the club is said to have exceeded the loss limit. West Bromwich Albion has not been informed of the amount of the breach, other than that it is less than £2 million. This is therefore the minimum amount for a breach of P&S rules across the EFL Championship and Premier League.”
“The legal action was brought by the EFL’s Club Financial Reporting Unit (CFRU) following a change in CFRU’s approach to community development spending. In 2023/24, CFRU acknowledged that clubs are entitled to include in their profit and loss accounts in-kind donations of club facilities, staff time and resources to the Albion Foundation, which is its official charity partner. Earlier this year, CFRU notified clubs of the change in its approach and imposed a retrospective adjustment to clubs’ profit and loss statements.
“Had CFRU not changed its approach to community development spending, the club would not have been in breach of the P&S Regulations. The club will continue to support the great work of the Albion Foundation and its community programs.”
“West Bromwich Albion have the right to appeal and are considering their options. The club will provide further comment upon receipt of the written reasons.”
“For now, we will settle the matter on the pitch.”
