EFL (English Football Leagues) CEO Trevor Birch stated that the losses experienced by the clubs created a "systemic risk of bankruptcy" for the football pyramid. This statement was made following legal proceedings initiated by the Professional Footballers' Association (PFA) against the EFL. The PFA has decided to take legal action regarding the EFL's new financial rules.

In May, the EFL announced outsourcing cost rules that will replace the profit and sustainability framework from the 2026-27 season. With this change, the percentage of income that clubs can allocate to the salary budget has been reduced from 60% to 50% in League One. The PFA argues that these changes cannot be implemented without the full concurrence of the Professional Football Negotiating and Consultative Committee (PFNCC).

Recalling that his football career ended at the age of 23, Birch drew attention to the players' short career and emphasized that the financial situation of EFL clubs was "unsustainable". Over the last five seasons, average player spending in League One has risen from £3.8m to £8.0m, while clubs' losses have increased from £2.3m to £7.3m. Last season, average losses in the Championship reached £21.6 million.

"Financial sustainability and player protection are not opposing ideas. They are inseparable," Birch said. A financially secure club is more likely to honor contracts, pay salaries on time, invest in facilities and provide long-term career opportunities, he said. He stated that this situation is not limited to League One only, but has also become more evident in the Championship.

Plans to introduce salary caps for League One and League Two in 2021 were withdrawn after the PFA argued the new rules were "illegal and unenforceable". The PFA has expressed concern that the new rules could have consequences such as suppressing wages and restricting squad spending. “There are legitimate concerns that new rules could suppress wages and restrict squad spending,” said Birch. “But doing nothing would also perpetuate the difficulties our clubs face.”

In League One, Oxford United were placed on a temporary registration embargo for failing to comply with the new rules. The club will have to wait months to meet its new obligations. Sheffield Wednesday, on the other hand, spent most of last season in managerial troubles and was deducted 18 points due to financial breaches. This raised questions about the league's competitiveness.Birch emphasized that fans want clubs to have the "necessary resources and assurance" to remain at the center of their communities, adding: "Fans want ambition, but they also want real hope and fair danger. Competition needs to be open, reliable and exciting." Birch said that legal processes will not solve these problems and pointed out the necessity of a sustainable financial model.