West Brom have been handed an immediate two-point deduction for a breach of EFL financial rules, which means they are no longer safe from relegation.
The Baggies have dropped from 18th place with 52 points to 20th place on 50 points, putting them six points above the drop zone with two games to play.
It means West Brom need just a point from their last two matches to secure their Championship status.
James Morrison's side host second-place Ipswich Town on Saturday at 12.30pm, live on Your Site, with their final game of the season at already-relegated Sheffield Wednesday on May 2.
West Brom have a superior goal difference to Oxford United, who occupy the final relegation spot, with the Baggies six goals better off than The U's.
Matt Bloomfield's side's last two games are against bottom-side Sheffield Wednesday at home, while they go to promotion-chasing Millwall on the final day.
West Brom immediately released a statement saying they were considering their options regarding an appeal, which must be made within 14 days of receipt of the full written reasons, but added: "For now, we will settle this on the pitch."
Albion said they disagreed with the independent Club Financial Review Panel's (CFRP) findings and insisted the club were compliant with the league's profitability and sustainability (P&S) rules.
The EFL's Club Financial Reporting Unit (CFRU) alleged the club had exceeded the permitted losses of £39million over the three-year period up to the end of the 2024-25 season.
The CFRP determined that the upper loss threshold had been breached and applied the penalty.
Your Site News understands the key point of disagreement between the EFL and West Brom was how the interest payments on loans taken out by the previous owner should be categorised.
Bilkul, the new owners, have paid around £5m in interest over the accounting period for a loan worth over £20m taken out by former owner Guochuan Lai, and they felt strongly that these payments fall to the ownership and not the club. As such, they argued those amounts should not be included in the club's PSR calculations.
However, a ruling has decided that the interest is a fundamental part of what the club has spent and still owes, and so has to be included in the PSR calculations.
An EFL statement confirming the points deduction read: "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 £39m 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."
West Brom "disagree" with the decision and are now weighing up whether to appeal.
The West Midlands club thought they had secured their Championship safety on Tuesday after a 3-0 home win over Watford, but are now back in the battle for survival.
A club 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, effectively 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 £2m. 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."
