The proposed EFL salary caps reportedly could be put back until next year as clubs have been unable to come to an agreement.
A cap of £2.5 million at League One level and £1.25 million for League Two have been proposed by the EFL, while the Championship is said to be discussing a limit of around £18 million.
It’s understood the wages of players aged under 21 wouldn’t count towards the cap and it is expected that there would be a transition period. Squad sizes would be limited to 20 senior players aged over 21 with eight homegrown. Fines or points deductions would be issued for clubs breaking the limits.
Discussions have been ongoing for a number of weeks with TWTD reporting earlier this month that a number of clubs, among them Town, had spoken against the move at a meeting of League One sides.
According to the Daily Mirror, an agreement is still to be reached and that with the proposed start of the new season - August 29th or more likely September 12th - getting closer the cap could be put back until 2021/22. Clubs are said to have told players and agents that a delay is expected due to the lack of time.
The PFA, the players’ union, is reported to have written to its members telling them that bringing in the cap and clubs reducing wages midway through contracts without consent would be illegal. They say they are aware of the financial situation facing many clubs and won’t stand in the way of the proposed cap but want full consultation.
Town would be one of the League One clubs most affected by a cap set as low as £2.5 million. 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, Town’s player wage bill is almost certainly more than double, perhaps three times higher than the proposed limit and will be one of the largest in the division.
Speaking to TWTD last week, general manager of football operations Lee O’Neill said: "I understand why it’s on the table and why clubs are looking at it and it brings to light the financial implications around football at the moment and trying to level the playing field from a financial aspect.
"From an ownership point of view, if you have that luxury of having an owner that is willing to or able to invest more money into the club because he wants to, this obviously reduces the ability to be able to do that, and that I don’t think is fair.
"I think Financial Fair Play was put in place to look at those elements, to help the clubs who are big clubs with big fanbases, and that can economically work for most clubs if it’s adhered to. We’ve stuck to that, we’ve definitely adhered to the Financial Fair Play stuff.
"The salary cap has got to be voted through and it’s something that is being talked about. I’m not necessarily a big fan of it for obvious reasons.”