West Brom handed instant points deduction that puts them back into Championship relegation race

West Bromwich Albion have been plunged back into the Championship relegation race after being handed an immediate two-point deduction.

The EFL have found the Baggies to be guilty of breaching Profitability and Sustainability (P&S) Rules.

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It puts West Brom on 50 points, six ahead of Oxford United with two Championship league fixtures remaining.

However, the Baggies post a notably better goal differential than Oxford, meaning it would take a serious defensive capitulation for West Brom to fall into League One.

Yet it does not escape the fact West Brom are now mathematically a chance of goinig down.

EFL’s statement

In a statement, 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 £39 million 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.

“The full written reasons will be published in due course.”

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West Brom fire back at punishment over ‘smallest ever breach’

In response, West Brom said: “Following a two-day hearing which concluded on 23 April 2026, the EFL’s Club Financial Review Panel (CFRP) has published a decision which states that the Club has exceeded the Upper Loss Threshold for the three-year period ending 30 June 2025 and will therefore receive a two point deduction, effective immediately. At this stage, the CFRP has not published any written reasons for the decision. The Club disagrees with the CFRP’s findings and remains of the view that it has fully complied with the Profitability and Sustainability (P&S)Rules. 

“The decision does not state the amount by which the Club is said to have exceeded the Upper Loss Threshold. West Bromwich Albion has not been informed of the quantum of the breach, save that this is less than £2million. This is therefore the smallest ever breach of the P&S Rules across the EFL Championship and the Premier League. 

“Proceedings were brought by the EFL’s Club Financial Reporting Unit (CFRU)following a change in the CFRU’s approach to Community Development Expenditure. In 2023/24, the CFRU accepted that the Club was entitled to include in-kind donations of the Club’s facilities, staff time and resources to its official charity partner, The Albion Foundation, in its P&S calculation. Earlier this year, the CFRU informed the club that it had changed its approach and imposed a retrospective adjustment to the Club’s P&S calculation.

“Without the CFRU changing its approach to the Community Development Expenditure, the Club would not have breached the P&S Rules. The Club will continue to support the great work of The Albion Foundation and its community programmes.

“West Bromwich Albion has a right of appeal and is considering its options. The Club will provide further comment once it has received the written reasons. 

“For now, we will settle this on the pitch.”

Fast moving story

Earlier this month, it was revealed that West Brom had been charged by the EFL for breaching PSR.

At the time, they were sat in 20th place just two points above the drop zone.

But the Baggies have gone on a great run and were safe.

They are unbeaten since the end of February and have won their last two against Preston North End and Watford.

West Brom were hoping that any deduction would happen next year, but the EFL have imposed the sanctions right now.

For them to go down, there needs to be a swing of six in goal difference and for West Brom to lose their last two and Oxford to win their final two.

Charlton Athletic are also on 50 points and have a goal difference just one worse than Oxford, so it is now a three-way battle for that final spot.

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West Brom play promotion-chasing Ipswich Town on Saturday before a final day away trip to basement boys Sheffield Wednesday, who have won once all season.

Meanwhile, Oxford play the Owls on Saturday before a last-day trip to promotion-chasing Millwall.

West Brom’s finances

In March, West Brom reported an operating loss of £17million – down from the £31m they disclosed from the previous financial year.

From July 2022, their overall losses stand at £55.6m, which exceeds the maximum £39m clubs are permitted over a three-year period.

Total borrowings from their recent accounts are reported at £53m.

And they also have to pay back a £25.7m loan before the end of 2026 to American investment group MSD Holdings.

What has been said?

Before the points deduction happened, West Brom interim boss Morrison insisted he was just focusing on the pitch.

After the 3-0 win over Watford, he said: “The fans deserve it. We’ve had a challenging time but we’re getting our rewards for a bit of belief. We have just got to remain on our jobs and finish the season as strongly as we have been doing.

“As professionals it is our right to keep playing and the fans would be disappointed if they didn’t see the level of performance we’ve been giving. We can rest at the end of the season.

“It’s where we’ve wanted to be. It’s a strange situation for everyone, but we’ll keep doing our jobs on the pitch and enjoy this moment and keep working hard like I demand.”

He must now get his players up for two more games with just a point needed.