West Brom have been handed an immediate two-point deduction for breaching EFL financial rules, leaving their Championship safety in doubt with two games left.
The Baggies slipped from 18th on 52 points to 20th on 50, now six points above the relegation zone with two matches remaining. They need just one point from their final two fixtures to guarantee survival. James Morrison’s side host second-placed Ipswich Town on Saturday (kick-off 12.30pm, live on Sky Sports) before finishing the season at already-relegated Sheffield Wednesday on May 2. West Brom currently have a superior goal difference to Oxford United, who occupy the final relegation place and sit six goals worse off; Oxford’s remaining games are at home to Sheffield Wednesday and away to promotion-chasing Millwall.
The sanction follows a Compliance Report from the EFL’s Club Financial Reporting Unit (CFRU) alleging the club exceeded the permitted Upper Loss Threshold of £39m over the three-year period ending 30 June 2025. An independent Club Financial Review Panel (CFRP) heard the case on 22 and 23 April and concluded the threshold had been breached, imposing a two-point deduction effective immediately and applied to the 2025/26 Championship table.
A key disagreement centred on how interest payments on loans taken out by the previous owner should be treated. New owners Bilkul paid around £5m in interest during the accounting period on a loan of more than £20m originally arranged by former owner Guochuan Lai. Bilkul maintained those interest payments were ownership costs and should be excluded from Profitability and Sustainability (P&S) calculations. The CFRP decided the interest formed part of the club’s expenditures and liabilities and must be included in the P&S assessment.
In its statement, the EFL said the CFRU submitted the Compliance Report in March 2026 and recommended a two-point deduction in line with sanctioning guidelines. The club denied the allegations at the hearing, but after considering the report and the club’s responses the CFRP determined losses exceeded the Upper Loss Threshold and imposed the sanction. The club has 14 days from receipt of the full written reasons to lodge an appeal; if appealed, rules provide for the hearing to take place within 28 days of submission.
West Brom immediately said they disagree with the CFRP’s findings and are considering an appeal once they receive the full written reasons. The club noted the panel has not yet published its written reasons and said the alleged excess was under £2m, describing it as the smallest recorded breach of the P&S Rules across the EFL Championship and the Premier League. The club also raised a separate issue about a change in the CFRU’s approach to Community Development Expenditure. In 2023/24 the CFRU accepted in-kind donations of club facilities, staff time and resources to the club’s official charity partner, The Albion Foundation, in P&S calculations; West Brom say an earlier this year change to that approach led to a retrospective adjustment and, without it, they would not have breached the threshold. The club added it will continue supporting The Albion Foundation and its community programmes.
For now West Brom say they will seek to settle the matter on the pitch while they consider their next steps under the EFL appeal process.