League 1/2 Financial Fair Play Rules.

[Robbie 𝕏 @Robbie_NCFC]

SCMP (salary cost management protocol) limits spending on player wages to a percentage of club Turnover. Initially introduced during the 2011/12 campaign, SCMP was put in place to ensure teams in League One and League Two operate within their financial means.

In League 1 clubs can spend a maximum of 60% of their turnover on wages.                 Clubs relegated from the Championship into League One are permitted to spend an extra 15 per cent of their turnover on wages for their first season in the division, taking their threshold to 75 per cent. 

In League 2, the limit is 55%.

League 1/2 Clubs can only spend a fixed percentage of its revenue (as above) on player wages etc. This limit can also be added to or impacted by equity injections or net transfer spend.

There are no restrictions (in themselves) on the amount a club can lose or spend on transfer fees. 

(Source Google)

So similar to the Premier League, the richer clubs in League 1 and 2 could have an advantage when it comes to buying more expensive players & paying higher players wages.

Relegated clubs from the Championship could have an unfair advantage in their first session in League 1, just like when a club receives parachute payments when relegated from the Premier league.

An alternative would be to have a Cap on the amount of money a club could spend on buying players and the amount on players wages  per season to even things up.