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Clubs Vote in Favour of Salary Cap
Friday, 7th Aug 2020 14:02

League One and Two clubs have voted in favour of introducing the EFL's salary cap proposal.

The Blues were one of the sides to speak out against the initiative which will see League One wages limited to £2.5 million.

It's understood seven clubs voted against the proposal and one abstained with 16 in favour. Nine would have been enough to prevent the required two-thirds majority. Town, Portsmouth, Sunderland, Hull City, Charlton, Wigan, Doncaster and Oxford were the clubs understood not to be keen on the initiative prior to the vote.

An EFL statement reads: “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 £2.5 million and £1.5 million 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 per cent, whereby dependent on the percentage level of the overrun, a financial penalty [reportedly £3] 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.”

Commenting on the decision, EFL CEO, David Baldwin said: “The term ‘salary cap’ is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL regulations.

“The financial impact of Covid-19 will be profound for EFL clubs and today’s vote will help ensure clubs cannot extend themselves to the point that could cause financial instability.

“Over the last two weeks the discussions amongst clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the clubs have determined to adopt the new approach.

“We will now work with all clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL.”

The Blues are among the League One clubs most hit by the cap. In their last season in the Championship Town's 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 player wage bill is almost certainly still more than double, perhaps three times higher than the limit and will be one of the largest in the division.

It’s understood the wages of players aged under 21 wouldn’t count towards the £2.5 million figure, while squad sizes will ultimately be limited to 20 senior players aged over 21 after a period of transition with eight of those homegrown.

Town’s general manager of football operations Lee O’Neill told TWTD last month that he was no fan of the cap which he says will hamper owner Marcus Evans’s ability to inject cash into the Blues.

“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,” he said.

“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.”

Meanwhile, former Blues right-back Josh Emmanuel, 22, has joined Hull City having been released by Bolton Wanderers at the end of last season.


Photo: Action Images



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Edmundo added 16:52 - Aug 7
Defer wages till season ends and we get promoted? Massive gamble.
Like 2002 ITV Digital, it's the wrong place at the wrong time for us. Or financial mismanagement.
0

positivity added 16:53 - Aug 7
thanks murphy, thought that didn't add up!
1

tractorboybig added 17:15 - Aug 7
mickey mouse league run by donald ducks to oblivion and beyond
1

Bluearmy_81 added 17:38 - Aug 7
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

Love how ONeill changes/corrects that quickly from 'willing' to 'able to...' 🤣😂🤣 We're screwed
#couldbeworsecouldbelowestoft 🤣😂 no ambition, no pride, no belief
-2

GatesPerm added 18:35 - Aug 7
I am a firm believer in the market economy and so fundamentally disagree with the principle of a salary gap.

Putting that aside, there is no way that the Premier League and Championship will follow suit so regrettably this short sighted decision based on self interest will result in the end of the football league pyramid in its current format.

You can almost guarantee that there will a Premiership 1 & 2 within 2-3 years.

A sad day for English football.
9

ArnieM added 23:18 - Aug 7
...agreed, and a return to regionalised and part time Leagues one and two, inside 2-3 years . Football is dead in this Country now. It's only about money .
0

afcfee added 00:33 - Aug 8
Least we got Skuse new deal before this 😂
1

Edmundo added 08:34 - Aug 8
Should Town now gamble on either (a) promotion and then paying whatever penalties accrue, and/or (b) start seriously thinking about getting into discussions for a Prem League 2 (which quite frankly is already in operation with 15-18 clubs in the Championship operating miles ahead of the rest)?
This is a big test of ambition for Marcus: he can potter along, pocketing small profits from this salary cap, or actually think about the long term interests of ITFC.
This is going to play out over a longer period, like GatesPerm said - 2 or 3 years there'll be a Prem 2. We need to be in it, or I fear we'll be playing Colchester an Cambridge in a part time league by the time I'm taking the grandkids.
1

MurcianITCC added 09:01 - Aug 8
Good point Suffolk boy, I can see a breakaway coming with the "bigger" lower league clubs joining an expanded championship?
1

Cloddyseedbed added 09:01 - Aug 8
If Man City were in this league they would get it over ruled! My thoughts are we are now even more doomed. All the years of under spending by Evans has now got us in this position.
2

Bluearmy_81 added 09:57 - Aug 8
Edmundo, even under that depressing scenario there would still be fans saying "could be worse, could be... 🙄🙄🙄" and "thank god we have Evans..." 🙄🙄🙄 Laughable.
0

StavangerBlue added 11:17 - Aug 8
We don't spend on players! What's our biggest transfer fee? Serini under Sheepshanks. The market has gone way higher yet we only buy for peanuts.

I bet ME loves this vote as it validates his stance on not spending without him having to come up with an excuse.
1

rabbit added 11:42 - Aug 8
Bluearmy_81 the biggest laughable thing on this site is most of your confused nonsensical ramblings.
So far in the last day or so you have blamed ME for giving PL a five year deal when only a few short weeks before the deal was announced you said PL is brilliant.
You pretend to be a real fan, but only attend 2-3 matches per season, you set up an ME out facebook page which you claimed would grow exponentially and would arrange protests and yet when there was a protest you claimed you couldn't go because you hadn't organised it!
Previously you have felt justified in advising TWTD readers how important BLM is and yet you ridicule and attempt to bully ITFC supporters when they disagree with you and you have called Suffolk people serfs.
You can never reply to genuine questions because you know that most of what you write on here is tripe.
Passionate supporter ha! I think not.
0

Northstandveteran added 12:19 - Aug 8
This club is in millions of pounds of debt.
This club cannot afford the tens of thousands of pounds a week to secure signings of Garbutt and the likes.
Blame who you want for that, the conversation bores me.
How can clubs in this division who's attendances are around three or four thousand continue to pay average players huge wages?
Because we are deemed as a 'big' club in this division, I think some on here think that this cap is going to be detrimental to our chances and we could simply buy our way to promotion.
With this pandemic far from over, this could save clubs going bankrupt.
With the exception of Burleys spending spree on foreign journeyman that destroyed the squads camaraderie that got us relegated from the premier league and Evans giving Keane and Jewell money to waste, this club has often sold players more than its signed.
The club must now make Ipswich an attractive prospect for youngsters to join and find a manager that can play us out of the division opposed to pay us out.
Although we consider ourselves to be too famous, too superior to this division, remember, we are a mid table third division club.
As I've read in many of the comments. Money has ruined football.
These changes, I believe, will eventually make their way to the championship and hopefully the premier league.
So to sum my opinion up, this salary has to be a good thing for football in general.
3

OldClactonBlue added 12:37 - Aug 8
If we're limited to the number of and cost we need to ensure that those chosen are up to the job.
0

Bluearmy_81 added 12:39 - Aug 8
Rabbit, I only read the first few lines. You talk complete rot. Please find where I said, a few short weeks ago, that PL is great as you're lying (again.) Thanks
0

leroy2488 added 12:50 - Aug 8
The thing is, if our players didn't play very well due to not earning as much..... How would we know the difference.
0

leroy2488 added 13:10 - Aug 8
On a serious note.... I just think it's ironic that for two decades we were in the championship, always at a disadvantage to several teams every single year who were so much better off and allowed to spend it due to parachute payments for four years.
We go down a division and become one of the ‘bigger' teams, certainly with gates enabling some investment, then all of a sudden we are forced to only be as big as the smallest in the form of the salary cap.
Any team going up now will have massive problems staying up.
Wrong place wrong time again and that's due to total mismanagement from the very top, giving the wrong managers lots of money to spend and forcing the good ones to create teams with peanuts compared to others.
No we probably won't go bankrupt, but I can't see how we'd get out of the debts this owner has racked up, supposedly being cautious.
Only way out of debt is to reach the promised land of he premiership and this will only happen with a better owner, a business man who knows when to hold em and when to fold em, when to walk away and when to run.... It's a rich mans dream to own a football club, this dream has become our nightmare due to this owners ability in creating debt, which makes a once amazing club too expensive, should a better owner/ business man ever wish to buy the club.
2

ssmith added 13:42 - Aug 8
20 man squad , that £125 k average, third level team that don't sound to bad ,how many people on this site earn that
1

rabbit added 08:40 - Aug 9
Bluearmy_81 hahaha totally priceless you pretend to be a psychologist and really believe that I would accuse you of something I could not prove, totally priceless!!!
I have in order to avoid any doubt cut and pasted your quote

"Lambert is great, agreed. Happy with the way things are shaping up this season"

This was a reply to another poster that you felt the need to insult or try to bully.
The only reason you sometimes don't reply to me is because you can't stand up to being questioned.
You only read the first few lines is what you have said, absolute rot, you read it all but don't have the bottle to answer it.
0


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