West Brom hit with immediate two-point penalty deduction for PSR breach to raise relegation concern

Albion have been hit with an immediate deduction of two points after being found guilty of a financial breach.

The penalty sanction has seen James Morrison’s side fall back into relegation contention in the Championship, with their buffer sliced to six points with two games left.

A two-day hearing took place over Wednesday and Thursday and a decision came within 24 hours of its completion, believed to be the quickest ever outcome of its kind.

Albion maintain their innocence and continue to insist they have complied with profit and sustainability (PSR) regulations.

A club statement revealed that a recent change in the PSR stance when it comes to community development expenditure is the reason behind the breaching of the loss limit.

Albion vow they will “continue to support the great work of The Albion Foundation and its community programme.”

The club say they are considering their options when it comes to a possible appeal.

No written reasons have been provided for the sanction and Albion, owned by chairman Shilen Patel’s Bilkul Football WBA, have not been informed of their exact overspend beyond PSR limits, aside from the figure is less than £2million.

Albion’s statement revealed the overspend of losses permitted across three seasons, which is £39m, fell into the category of expenditure on matters including facilities, staff time and resources to its official charity partner, The Albion Foundation.

But the club say they were informed earlier this year by the EFL’s club financial reporting unit there was a change to the approach to PSR rules and a subsequent adjustment was made to the club’s PSR loss calculation.

The latest fresh twist adds further jeopardy to the club’s late-season bid to stave off relegation.

Morrison has performed heroics at the helm with a nine-match unbeaten run to pull the club clear of the drop zone.

The Baggies move eight points clear with two games left thanks to Tuesday’s win over Watford, but the sanction pulls the club back within reach of lowly rivals ahead of Saturday lunchtime’s home game against Ipswich.

Oxford, who occupy the final relegation place, can now reel in the 20th-placed Baggies from their six-point deficit, but would have to win both remaining fixtures - with Albion defeats - and improve on a goal difference of six in the Baggies’ favour. Albion have dropped two places with the deduction.

The club are understood to be surprised at the swiftness of decision reached by the governing body. Decisions of a similar nature can generally take weeks to be reached - and in the recent case of Leicester City’s sanction, the Premier League took 64 days to reach a verdict.

Albion are also mystified at the timing of the process and the lack of written reasons provided for the decision.

The club, as per guidelines, filed their accounts by the December 31 and are believed to be at a loss as to why the charge was made at the end of March.

Albion, who say they will further comment upon receipt of written reasons, signed off their club statement with: “For now, we will settle this on the pitch.”

The statement read: “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.”