REBEL CLUBS IN EFL LEGAL FIGHT

The eFL are facing the threat of a legal challenge from Championship clubs over their refusal to significantly alter profit and sustainability rules to account for the financial impact of the pandemic. Around six clubs are understood to have had initial talks about joint legal action to challenge the eFL’s threshold for permitted losses, which is set at £39million over a three-year period. The eFL plan to give clubs an additional allowance of around £5m to cover for the absence of gate receipts when crowds were prohibited last season. The rebel clubs want extra wriggle room due to the Covid-induced collapse of the transfer market, which has left many of them unable to balance their books by selling players. Derby and reading have been deducted points for breaching the losses threshold in recent years. middlesbrough, Stoke and Bristol City are at risk of a breach over the next three-year cycle judging by their most recent published accounts.