League One clubs aim for further curbs on spending as budgets continue to spiral

League One clubs want to introduce new spending restrictions to reduce losses by limiting investment from owners.

Clubs in the division voted to tighten the rules last summer by reducing spending limits from 60% to 50% of turnover, and removed a staggered approach to owner investment, so that only 50% of equity injections can be spent on squad costs, with the rest assigned to infrastructure projects. Less than six months later many want to go further.

The Guardian has learned that two proposed models are being considered: a cap on the amount clubs can lose over three years, and the introduction of a luxury tax by which 50% of owner investment above a capped threshold would be redistributed to their rivals – with the former proposal seen as the favoured…