A plan to introduce salary caps in League One and League Two was scrapped in 2021 after the PFA argued the proposals were illegal and couldn’t be enforced.
The union remains opposed to the latest reforms, believing they would reduce its members’ earning potential.
Birch acknowledged the PFA’s view that the new framework could depress wages and limit squad spending, saying that concern should be taken seriously. But he warned that standing still simply prolongs the financial problems many clubs face, especially where owners are unwilling or unable to keep increasing funding.
He stressed the aim isn’t to curb ambition, but to set sensible parameters so clubs can invest responsibly, stay competitive, and avoid jeopardising their long-term stability.
Oxford United of League One were placed under a temporary transfer registration ban last month for failing to meet the new requirements. They currently cannot sign players, including loans or free agents, and the club says it could take months to reach compliance.
Meanwhile, Sheffield Wednesday spent much of last season in administration after then-owner Dejphon Chansiri pulled funding. The club was docked 18 points for financial breaches and nearly went out of business, prompting debate about competitive balance in the division.
Birch said supporters want clubs to be financially secure and remain central to their communities. Fans want ambition that feels realistic, jeopardy that is fair, and competitions that are open, credible, and exciting—whether in the stands or on TV. They also want promotion and relegation battles that matter, enduring local pride, and clubs that outlast any single ownership.
He argued that legal action won’t solve the core issue: a financial model that pushes too many clubs to chase success through sustained losses underwritten by owners, which is not viable.
Birch added that a fairer, more balanced funding arrangement with the Premier League is essential for EFL clubs, noting that solidarity payments have not changed since 2019.