Salary caps at League One and Two levels have moved closer with an EFL annual general meeting yesterday reducing the number of clubs required to vote in favour of the move.
Last month, it emerged that the EFL’s Financial Controls Working Party had recommended wage caps of £2.5 million for League One and £1.25 million for League Two.
At yesterday’s meeting a resolution was passed which means it would take a two-thirds majority rather than 75 per cent of clubs to make changes to divisional Financial Fair Play rules.
It’s understood clubs in Leagues One and Two are generally in favour of implementing new regulations due to the financial issues created by the coronavirus pandemic. Championship clubs are less keen but with discussions continuing.
According to The Times, the £2.5 million and £1.25 million limits would include all player costs including agents’ fees. Firm proposals are set to be voted on before the start of the new season.
Currently, League One clubs have to adhere to the division's SCMP Financial Fair Play rules, which stipulate that player wages can’t be any more than 60 per cent of turnover, 75 per cent in the first year down from the Championship, although with three-year contracts signed before September of the relegation year and those of young pros aged under 21 not counting towards the cap.
Town backed the introduction of Financial Fair Play when it was brought in by Championship clubs in April 2012, although owner Marcus Evans was critical of more recent developments which saw the limits greatly increased at second tier level.
The Blues are less likely to be fans of the current League One proposals, which are lower than many anticipated and would require Town to cut their wage bill significantly.
In their last season in the Championship the Blues’ overall wage bill was £18.95 million with player wages understood to have made up around £11 - £12 million of that figure.
After relegation, many players’ salaries dropped as a result of clauses in their deals, by as much as 60 per cent in some cases, however, the Blues’ player wage bill is almost certainly more than double, perhaps three times higher than the proposed £2.5 million limit and will be one of the largest in the division.
Also at yesterday's meeting, EFL clubs formally rubberstamped the appointment of Rick Parry as chair on a three-year term until June 2023, having been appointed by the EFL board earlier in the season.