West Brom have been hit with an immediate two-point deduction for breaching EFL financial rules, leaving them no longer certain of Championship safety.
The Baggies dropped from 18th with 52 points to 20th on 50 points, leaving them six points above the relegation zone with two games remaining. They need one point from their final two matches to guarantee survival.
James Morrison’s side host second-placed Ipswich Town on Saturday (kick-off 12.30pm, live on Sky Sports) and finish the season at already-relegated Sheffield Wednesday on May 2. West Brom have a superior goal difference to Oxford United, who occupy the final relegation spot, being six goals better off. Oxford’s remaining fixtures are at home to Sheffield Wednesday and away to promotion-chasing Millwall.
The deduction follows a Club Financial Reporting Unit (CFRU) Compliance Report alleging the club exceeded the permitted Upper Loss Threshold of £39m over the three-year period ending 30 June 2025. The independent Club Financial Review Panel (CFRP) heard the case on 22 and 23 April and determined the threshold had been breached, imposing a two-point sanction effective immediately.
Sky Sports News understands a core dispute was how interest payments on loans taken out by the previous owner should be treated. New owners Bilkul paid about £5m in interest over the accounting period on a loan of over £20m taken out by former owner Guochuan Lai. Bilkul argued those interest payments are ownership costs and should not be included in the club’s Profitability and Sustainability (P&S) calculations. The CFRP concluded the interest is part of what the club has spent and owes, and must be included in the P&S assessment.
The EFL 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 sporting sanction has been applied to the Championship table for the 2025/26 season. 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.”
West Brom immediately issued a statement saying they “disagree” with the CFRP’s findings and are considering an appeal once they receive the full written reasons. The club noted the CFRP has not published written reasons and that the amount by which they are said to have exceeded the Upper Loss Threshold is less than £2m. The club described this as the smallest ever breach of the P&S Rules across the EFL Championship and the Premier League.
West Brom also said the proceedings followed a change in the CFRU’s approach to Community Development Expenditure. In 2023/24 the CFRU accepted in-kind donations of the club’s facilities, staff time and resources to their official charity partner, The Albion Foundation, in P&S calculations. Earlier this year, the CFRU changed its approach and applied a retrospective adjustment to the club’s P&S figures; without that change, the club says it would not have breached the rules. The club affirmed it will continue supporting The Albion Foundation and its community programmes.
The EFL process allows the club 14 days from receipt of the full written reasons to appeal; if lodged, the appeal must be heard within 28 days. For now, West Brom say they will “settle this on the pitch.”
