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Salary cap confirmed.

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1Salary cap confirmed. Empty Salary cap confirmed. Fri Aug 07 2020, 15:00

Sluffy

Sluffy
Admin
'Squad Salary Caps' introduced in League One and League Two


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Clubs in League One and League Two have today voted for the introduction of new financial controls in the form of ‘Squad Salary Caps’ into their respective divisions which take effect immediately.

The decision follows extensive and comprehensive consultation with all Clubs in respect of addressing sustainability and wage inflation issues across the EFL which were initiated prior to the suspension of football in March following the COVID-19 outbreak and have continued during the course of the summer.

Those discussions culminated in today’s divisional vote, with representatives of League One and League Two Clubs opting to implement the new measures in place of the existing Salary Cost Management Protocols (SCMP), with fixed caps of £2.5million and £1.5million respectively.

Discussions continue with Championship Clubs in respect to amendments to their own financial controls. League One and Two Clubs are also going to continue discussions towards the introduction of additional measures aimed at addressing Club financial sustainability.

When calculating total salary spending, the ‘cap’ includes:

Basic Wages;

Taxes;

Bonuses;

Image rights;

Agents’ fees and;

Other fees and expenses paid directly or indirectly to all registered players.

Payments directly linked to a Club’s progression in cup competitions or promotion are excluded from the Cap, while any income generated from players going out on loan is deducted from the Club’s Salary Cap calculation.

Transition arrangements have been incorporated in respect of a Club’s squad salary cap calculation with the key element of these aimed at addressing committed contracts and relegated Clubs. Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire.

An ‘overrun’ concept is also included if a Club’s total squad salary payments exceed the Cap by up to 5%, whereby dependent on the percentage level of the overrun, a financial penalty would be payable for every £1 in excess. Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission, although the EFL will monitor the Cap on a real-time basis throughout the season as is the current position with SCMP measures across the two divisions. Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission.

EFL CEO, David Baldwin said: “The term ‘salary cap’ is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations. The financial impact of Covid-19 will be profound for EFL Clubs and today’s vote will help ensure Clubs cannot extend themselves to the point that could cause financial instability.

“Over the last two weeks the discussions amongst Clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the Clubs have determined to adopt the new approach. We will now work with all Clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL.”

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2Salary cap confirmed. Empty Re: Salary cap confirmed. Fri Aug 07 2020, 15:11

Norpig

Norpig
Nat Lofthouse
Nat Lofthouse
Good job we got all our players in early i think, they will only class as the average wage.

3Salary cap confirmed. Empty Re: Salary cap confirmed. Fri Aug 07 2020, 15:15

wanderlust

wanderlust
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Good job we got all our players in early i think, they will only class as the average wage.
TBH I hope we aren't paying them above the figure. A lot of them are totally unproven at this level and we'd be daft to hand out fancy contracts until they've actually done something to justify it.

4Salary cap confirmed. Empty Re: Salary cap confirmed. Fri Aug 07 2020, 15:19

Norpig

Norpig
Nat Lofthouse
Nat Lofthouse
I'l bet Doyle and Sarcevic are on good money or they wouldn't have come here, the rest are probably on a lot less.

5Salary cap confirmed. Empty Re: Salary cap confirmed. Fri Aug 07 2020, 16:43

wessy

wessy
El Hadji Diouf
El Hadji Diouf
I welcome it, we can't have it both ways, on the one hand saying it hampers the bigger clubs in the lower leagues whilst on the other hand saying it's ridiculous that 100% + of a clubs income can go on salaries alone.

No other business would or could operate that way, overheads need to leave some margin for profit. Championship clubs need to smell the coffee, if the likes of Wigan with income of 11m can spend 19m on salaries it's no wonder the majority are on the cusp of bankruptcy.

The players have had it easy for far too long, time some sense was brought into the game.

The wages in the premiership are nothing short of obscene, and when the transfer fee's for one premiership player could run half a dozen lower league clubs then something is seriously wrong.

Sky money has killed the fairness of a level playing field, yes we have always had clubs with a bigger bank balance, but when you get 100m + for finishing bottom of the Premier league what the hell have we come to.

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