League One Salary Cap Proposed
Wednesday, 20th May 2020 11:46
A League One squad salary cap of £2.5 million has reportedly been proposed by the EFL.
According to the Daily Telegraph, the EFL’s Financial Controls Working Party met last week and their recommendations were subsequently submitted to clubs and will ultimately go to a vote.
The proposals would see clubs in League One limited to paying £2.5 million to their players and sides in League Two £1.25 million. Squad sizes will be limited to 20 senior players aged over 21 with eight homegrown.
The salary caps are aimed at dealing with a £200 million hole in lower league clubs’ finances caused by the coronavirus crisis.
It’s said the plan is to introduce the cap - which doesn’t include bonuses for promotion - in 2020/21 with clubs given a year to reduce their squad numbers with 22 players permitted for one season. Sides relegated from the Championship would be given a transition campaign.
The proposals, which would need to be ratified by a 75 per cent majority, also reportedly stipulate that clubs failing to pay their players on time would face points deductions.
The suggested levels of the caps are lower than anticipated and would require clubs such as Town to cut their wage bills significantly.
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.
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|ITFCsince73 added 11:59 - May 20|
If the majority of L1 players don’t accept pay cuts in the next 3 months. This proposal will come to late, unfortunately.
|Durovigutum added 12:01 - May 20|
Ignores turnover or the ability to pay more - gates of 20,000 allow higher bills than gates of 3,000. It does focus the mind on quality not quantity.
|positivity added 12:08 - May 20|
would be more sensible to have it as a percentage of turnover, sunderland's incomings are vastly different to rochdale's
|Murphys_Law added 12:31 - May 20|
This proposal isn’t workable in its one size fits all format. As previous posters have mentioned it can only work in relation to turnover.
|Dissboyitfc added 12:51 - May 20|
they should be capping wages in the top divisions as wel. I can see the gap growing bigger!
|positivity added 12:56 - May 20|
also only giving a year's grace to teams (especially those coming down) is unworkable with contracts typically lasting 3 years or more.
i guess going forward there'll be a much larger use of division-specific wage clauses, but that won't happen overnight
|boltzak added 13:09 - May 20|
What about the championship and premier. The clubs have a lot more debts than lower leagues.
|TJS added 13:17 - May 20|
"Sides relegated from the Championship would be given a transition campaign" - yeah right - this would be totally ignored by larger clubs coming down from the Championship in the desperate hope they go straight back up. They would therefore be able to offer up to 5 times the salary of the rest of the division. If this goes through we could be in League One forever.
|NicRams added 13:30 - May 20|
Just sounds like a way to make it difficult for lower league clubs to either hold on too or demand a decent figure, for their better players.
Also can see those clubs in L1 yo-yoing between L1 & Championship.
Surely a % would be better and an independant company making sure they are sticking to this and if no points deduction at that stage.
|MickMillsTash added 13:38 - May 20|
How do we spend £7-8 Million a year on the wages of non-playing personel?
That's 70-80 staff on £100K/ann or was Emyr Huws, Teddy Bishop, Alan Judge and other sh1thouses included in this number?
|Paulc added 13:41 - May 20|
This is like saying to Tesco i don't care how successful your business is, you can only have the same size stores as Mr Smith's corner shop!
|blues1 added 13:55 - May 20|
Mick mills tash. What are you on about? How would huws, bishop, judge come under the non playing staff budget?
|rickw added 14:22 - May 20|
I agree with "Squad sizes will be limited to 20 senior players aged over 21 with eight homegrown" but limiting wages to a set fee doesn't seem to make sense when there are clubs who take significantly more than that in gate receipts
|ArnieM added 14:35 - May 20|
About bloody time . Frankly it should also be applied at Premier League level , that’s the REAL problem area .
|TractorRoyNo1 added 15:39 - May 20|
Only monkeys play for peanuts, si goodbye to our best players
|BlueandTruesince82 added 15:51 - May 20|
That's should leave us about £2.4 mil a year to play with....
Unless manager salary counts towards that?
|MickMillsTash added 15:55 - May 20|
Due to injuries Huws, Bishop and Judge hardly played in the season we got relegated. Were they classed as non playing personnel?
Anyway 7-8 Mill is too much - Are we fudging numbers already ? do we make things up due to laziness? Are we just incompetent? incontinent even? Please Vote
|Bert added 16:50 - May 20|
Ridiculous proposal. Such a low salary cap will almost certainly lead to any decent player being picked up for peanuts by the over rich PL and Championship. As others have said, a cap should be in the context of the size of a club and its turnover. Cap salaries by all means but get the ceiling right.
|Blue041273 added 17:50 - May 20|
The point to remember is that there will also be limitations applicable to the composition of squads particularly in terms of numbers. Thus the recruitment policy will need to be down scaled and basically the majority of players will In future need to be employed on a short term basis. Home developed players will see that they will have more chances. So academies will be priceless for those clubs that can afford them! Overall there will be fewer opportunities for journeyman professionals and sadly a large number of players currently plying their trade in the lower leagues will struggle to earn a living in the football league in future! Those of us that remember the Alf Ramsey days will recognise the need for a quality manager that can build a competitive team on a shoestring! But at least all teams in the division will be faced with the same problem!
|timmy2guns added 20:16 - May 20|
This is pointless unless there is a salary cap across the Prem and championship..
|JohnyJohnson added 20:48 - May 20|
Why are the smaller leagues being punished like this, it is far more important this happens in the top 2 leagues!! What is going on? The gap is already far too big. Press the financial reset button
|mrmorisato added 12:21 - May 21|
I have mixed feelings about this.....whatever happened to introducing a salary cap based on TV income and gate receipts? The capacity of grounds in L1 varies greatly, if a proposed salary cap limit was introduced to cater for the smallest clubs in the division it would still provide the bigger blubs a massive advantage when it comes to offering larger transfer fees. I think Towns average attendance this season was around 19,500 which I think was the 2nd highest after Sunderland's....I must admit though, Town do need to reduce their wage budget further because even at 11 or 12£million is way too high for League1 where TV is greatly reduced.
|mrmorisato added 12:26 - May 21|
Plus anyway.....Clubs will have to drastically reduce their £bills with no gate receipt coming in anyway :( :( :(
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