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Championship financial 'tweak' which could affect Blackburn Rovers

Rovers are battling to finish in the play-off places <i>(Image: PA)</i>
Rovers are battling to finish in the play-off places (Image: PA)

Championship clubs have reportedly voted to “tweak rather than overhaul” Financial Fair Play rules for next season.

There had been plenty of debate in recent months over matters such as parachute payments and the gulf in finance compared to the Premier League.

There will now be a change in how investment into youth and women’s teams are factored into profit and sustainability rules, according to Stoke-on-Trent Live.

Clubs will also be required submit a profit and sustainability calculation in the second of a three-year cycle, rather than just those who are under close observation.

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But perhaps the main takeaway is that the amount clubs can lose over a three-year cycle will remain at £41.5million.

Rovers recorded a £3.3million profit in their latest set of accounts up to June 30, 2024 following the sale of Adam Wharton to Crystal Palace. Twelve months prior, the club posted a loss of £17.4m.

It remains to be seen whether more significant changes will be implemented in the Championship beyond the 2025/26 campaign.

There had been speculation that a squad cost ratio could come into the top two divisions of English football at some stage in line with UEFA’s rules.

A similar system is already in place in League One and League Two, which dictates how much revenue can be spent on transfers and wages.

Parachute payments have also been a key talking point lately. EFL chair Rick Parry claimed in November they have become “way too big” and need a rethink.

The current top three of Leeds, Sheffield United and Burnley are all receiving the payments following relegation from the top flight.

"We’re not saying they should be abolished,” he told BBC Sport. "They should be properly considered alongside other distributions, so the fact they are is good. Because they’re a proportion of the Premier League’s TV revenues, they have exploded over the last 20 years.

"They’ve just got way too big and it needs a rethink. It really is about how do we make sure relegated clubs are protected, but there’s fair competition within the Championship.”