How Stoke City are exploiting new financial rules to fuel summer spending spree
Quick Facts
Summer spending so far: Reported £21m on five permanent deals plus Josh Griffiths for an undisclosed fee
New rules: Championship's Squad Cost Rules (SCR) replace Profit and Sustainability from 2026-27
SCR limit: Clubs can spend up to 85% of income on players and managers
Old limit: Maximum losses of £39m over three years
Owner injection: Up to £33m over three years, capped at £15m per season
2024-25 profit: Only recorded after a £90m loan from owner John Coates was waived
Stoke City have been one of the busiest clubs in the EFL this summer, with sporting director Jonathan Walters delivering on his promise of "multiple signings." The Potters have invested around £21m in fresh talent, including Ethan Galbraith, Svante Ingelsson, Djibril Soumare, and Luke Graham, while making Milan Smit's loan permanent. Goalkeeper Josh Griffiths also joined from West Bromwich Albion for an undisclosed fee. But how can a club that needed a £90m loan waiver to post a profit keep spending so freely? The answer lies in a seismic shift in Championship financial regulations.
The SCR revolution
The Championship's Squad Cost Rules (SCR) have replaced the old Profit and Sustainability regulations from the 2026-27 season. Under the previous system, clubs were limited to losses of £39m over a rolling three-year period. SCR flips the approach: clubs can now spend up to 85% of their income on player wages and transfer fees. This move from a loss-based cap to a revenue-linked spending limit fundamentally alters how clubs budget.
"I think it gives clubs a little bit more leeway and that's provided the owner is willing to provide that funding," football finance expert Kieran Maguire told BBC Radio Stoke.
For Stoke, that leeway is critical. The club posted a small profit in 2024-25 only because new owner John Coates wrote off a £90m loan, masking an underlying loss. Under the old rules, that would have been a red flag. Under SCR, Stoke's strong commercial income—around half of total revenue—counts in their favour, allowing a higher overall spend.
Owner backing and commercial strength
The Coates family, wealthier than most Championship owners, play a pivotal role. SCR permits owners to inject up to £33m over three years, with no more than £15m in a single season. That gives clubs with committed, deep-pocketed backers a significant advantage.
Maguire highlighted Stoke's commercial performance as a key factor: "If you take a look at the commercial income for Stoke City, it's about half of the total the club generates, which is higher than that of many of the peer group that Stoke have in the Championship. So that will benefit the club." This robust revenue base, coupled with the Coates family's willingness to fund operational losses, gives Stoke a competitive edge in the transfer market.
The art of installment deals
Another tool in Stoke's arsenal is the structure of transfer payments. Under SCR's "cash management based approach," only the actual money spent in a given season counts towards the cap. Clubs increasingly split transfer fees into multi-year installments.
"Let's say that you are paying £5m for a player but you're spreading that as perhaps £2m this year, £2m in another year and £1m as a final payment," Maguire explained. "Only £2m of that will go into your calculations [for 2026-27], therefore the small print of transfers does allow smart negotiation by clubs to put them in a beneficial position as far as these SCR rules are concerned."
Stoke's recruitment team have clearly mastered this accounting trick, allowing them to commit to significant headline fees while staying within the annual spending limits. The approach mirrors that of many top clubs and is entirely within the EFL's rulebook.
Key Takeaways
- Stoke City's £21m summer spree is fuelled by the Championship's new Squad Cost Rules, which link spending to revenue rather than a fixed loss limit.
- Wealthy owner John Coates can inject up to £15m per season, while the club's strong commercial income boosts their allowable expenditure.
- Transfer fees are often paid in instalments, meaning only a fraction hits the annual accounts—allowing more ambitious recruitment without breaching rules.
- Stoke's model underlines the growing financial divide in the Championship, where clubs with backing and high revenue are best placed to exploit the new landscape.
- The Potters could yet be active in the final weeks of the window if they can structure further deals creatively.
Source: BBC Sport
