General manager of football operations Lee O’Neill says the summer ahead will be “a real transition” from a salary cap perspective if the Blues are still in League One with the cap set to impact the club more significantly than it did this season, although with rumours suggesting it could be scrapped following a recent arbitration hearing.
The cap was introduced in Leagues One and Two last August meaning clubs in the third tier are limited to a wage bill of £2.5 million for their senior players, those aged over 21.
This season their squad of senior players has been limited to 22 but from next year it will be down to 20.
Contracts signed prior to the introduction of the cap will continue to be treated at a lower level - as they have been this season, as if they worth £113,000 per annum - although at a higher figure of £125,000 in 2021/22.
However, with fewer players whose deals were agreed prior to last summer, the Blues - assuming they’re still in League One - will have limited cash to put towards new terms for squad members who are out of contract at the end of this season or any close season senior signings.
The Blues have 26 players out of contract this summer, 18 of them who fit into the senior player bracket.
Skipper Luke Chambers heads the list, joined by Cole Skuse, Stephen Ward, Emyr Huws, Freddie Sears, Kayden Jackson, Teddy Bishop, Alan Judge, Toto Nsiala, Janoi Donacien, James Wilson, Gwion Edwards, Aaron Drinan, Tristan Nydam, Barry Cotter, Ben Morris, Ben Folami and Harry Wright.
Town have previously confirmed they have an option to keep Skuse, Ward, Sears, Bishop, Judge, Nsiala, Donacien, Wilson, Nydam, Morris and Folami for a further season should they choose to do so.
Among those under-21, whose contracts don’t count towards the salary cap, Idris El Mizouni, Liam Gibbs, Bailey Clements, Levi Andoh, Adam Przybek, Bert White, Kai Brown, Zak Brown and Tommy Hughes all have deals which are coming to an end, although with the club having an option to keep them all aside from Gibbs for a further year.
As previously reported, Town have offered a new extended contract to Gibbs and will almost certainly look to do the same with El Mizouni among others.
Town took up the additional year’s option on Gwion Edwards’s current contract in May - as they did with young keeper Harry Wright - meaning the winger will be out of contract come the end of the campaign and speaking last month the Welshman said that as yet there have been no talks regarding a new deal.
In the circumstances, with the Blues still eyeing a return to the Championship and the general uncertainty surrounding football finance, that's hardly surprising.
"We didn’t really have that problem last summer because a large percentage of our players already had contracts all the way through,” O’Neill told TWTD.
"But this summer will be a real transition from some aspects, depending on what league we’re in and on the situational stuff; which players perform really, really well between now until the end of the season, that catch the manager’s eye that deserve new deals, things like that.
"That’s a good thing, they’re all fighting for new deals in the summer and it’s a great opportunity at the same time. So you’re looking at it and we know that we need to strengthen and we’ve talked about that loan versus permanent situation, which is again something we are looking at from now until the summer window as to which options we can go down.
"That heavily depends on what league we’re in obviously, because if do get promoted then it’s a different situation both from a financial structure and a non-salary cap element as well.
"So there are a lot of things that could happen and it’s quite difficult to start a planning process, but it’s something we are definitely starting to plan for, however, it’s just incredibly difficult because we don’t know which league we’re going to be in.”
With so many senior players out of contract and the manager almost certainly keen to make summer additions - whoever might be in charge at that point - some big decisions will have to be made.
"The landscape has changed from where they were before to where they are now are very, very different, which I’m sure all League One and League Two players [are aware],” O’Neill added.
"The expected salaries, and we’ve obviously always been a club which pays well, even in League One that is the situation, but for new deals going forward for players in League One, that’s going to be very, very difficult, and that’s not something the club’s put in place, that’s league structure.
"It is what it is, it’s the same for every club. It’ll be the same for the clubs currently in League One and it’ll be the same next year for anyone that’s relegated out of the Championship. They have to deal with it and the landscape will change.
"You can flip it on the other side and say it’s a great opportunity for young players to come in and cement their places and see how they get on as well.”
The Blues will also have tough decisions to make regarding youngsters who at 21 will move into the senior player frame, most notably Tristan Nydam and Ben Morris, who have both suffered serious injuries over the last 18 months and haven’t featured for the first team during that time.
"I don’t want to get into individual cases,” O’Neill continued. "It’s been unfortunate for both of them that they’ve had very severe injuries but that is the landscape at the moment, it’s a very difficult decision for the club to look at those particular cases.
"But it is something we will consider and look at. We’ve got to look at what options we have and what options they have in the summer and we’ll evaluate it.
"At the minute both of them are concentrating on their rehabilitation and that’s their first point of call, to make sure they can get themselves back fully fit in the process.”
O’Neill isn’t ruling out the Blues keeping hold of both players but them being sent out on loan: "We would have to consider all options.”
Similarly, striker Ben Folami, also 21, who is currently in Australia with the Melbourne Victory will be considered a senior player next season.
"The same situation with him and looking at how he does on his loan,” O’Neill said. "It’s great for him, he’s obviously getting some men’s football, he’s scored some goals. We’ll review his situation and see how he gets on.”
The PFA has challenged the legitimacy of the salary cap - "unlawful and unenforceable” - and an arbitration hearing in front of an independent panel took place last month with the results currently under wraps but expected soon. According to rumours circulating today, the cap could be scrapped.
O’Neill says he is unaware of any developments regarding the challenge and the arbitration process.
"I don’t know anything about the situation with the salary cap,” he said. "All we’ve been informed by the EFL is that it’s in place and it’s planned to be place for the near future, so we are working with it and working and planning towards the summer as if it’s going to be here.”