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EFL Salary Cap approved.

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  • EFL Salary Cap approved.

    https://www.efl.com/news/2020/august...nd-league-two/

    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.

  • #2
    We as a club are already in a good place to introduce this by the way we have been run over the last few years .There are quite a few clubs however that will have a nightmare with this , big wage payers like Stoke , Sheff weds , Forest, Bristol City are just a few.

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    • #3
      Originally posted by Stainrod View Post
      We as a club are already in a good place to introduce this by the way we have been run over the last few years .There are quite a few clubs however that will have a nightmare with this , big wage payers like Stoke , Sheff weds , Forest, Bristol City are just a few.
      I believe in League One and Two players who have already signed contracts would have their wage capped at an divisional average, suspect championship would do something similar.

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      • #4
        Originally posted by ConorQPR2000 View Post

        I believe in League One and Two players who have already signed contracts would have their wage capped at an divisional average, suspect championship would do something similar.
        Would that even be legal , say a player had signed a 3 year contract at a certain wage , then this comes in and caps their wages. I would say the lawyers would be looking at that .

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        • #5
          the Championship needs a wage cap imo
          beatmydemons.com

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          • #6
            Wayne Rooney comes to mind! But thought a lot his wages were being paid by advertising outside of Derby? Wont be long and there'll be cash in a brown paper bag!

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            • #7


              given all the inclusions that doesn’t actually pay much to a squad of 25 players in League 1 approx £1900 pw.

              if they introduce a cap to the Championship it would need to be around a £10m cap to pay roughly £8k pw.

              In the real world that is a good salary but not necessarily so in football’s. Many clubs will struggle with it, but yes, bring it on.

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              • #8
                Originally posted by stanistheman View Post

                given all the inclusions that doesn’t actually pay much to a squad of 25 players in League 1 approx £1900 pw.

                if they introduce a cap to the Championship it would need to be around a £10m cap to pay roughly £8k pw.

                In the real world that is a good salary but not necessarily so in football’s. Many clubs will struggle with it, but yes, bring it on.
                Football needs to get in the real world , especially with the pandemic, now is the perfect time .Its long overdue in my opinion and it will be an eye opener for a lot of clubs in the championship if it goes ahead.

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                • #9
                  I'm sure half the clubs look at those parameters and plot how they can bend, stretch, manipulate, distort, confuse, obfuscate and simply ignore them. Unless EFL have an immediate and punitive sanction stated (eg immediate expulsion from EFL) I'm not sre much will change.

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                  • #10
                    Although the clubs and EFL have come to an agreement the PFA are taking legal action as they were not consulted.

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                    • #11
                      Originally posted by davieqpr View Post
                      Although the clubs and EFL have come to an agreement the PFA are taking legal action as they were not consulted.
                      That’s because the pfa only care about players earnings and them same players are the first ones to moan about not getting paid when their clubs go bust .

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