The Baggies have been active in the transfer market this summer with player exits including Brandon Thomas-Asante, Okay Yokuslu and Conor Townsend bringing in cash.
Incomings have been free transfers though, with the exception of defender Torbjorn Heggem.
West Brom are on course to breach financial rules in the Championship though and the EFL are, as a result, stepping in.
The EFL will impose a business plan on the Baggies.
Any transfers or increased wage costs that West Brom now want to make will need to be agreed with the EFL.
It is suggested though that despite the EFL’s move, there is no risk of West Brom not meeting their financial commitments in terms of paying bills
West Brom are due to kick off their new Championship campaign next weekend when they head to take on QPR at Loftus Road.