The League One and Two salary caps have been scrapped following an arbitration hearing in front of an independent panel last month, the EFL has confirmed.

The PFA challenged the legitimacy of the salary cap, which it saw as “unlawful and unenforceable”, after its introduction in August.

The news is a big boost for the Blues, should they remain in League One for 2021/22, as the club faced losing some of its competitive advantage due to the limits imposed by the salary cap with general manager of football operations Lee O’Neill having admitted the coming summer would be one of transition on that front.

Town were among the clubs to vote against the proposal in the summer.

An EFL statement reads: “An independent arbitration panel has upheld a claim from the Professional Footballers’ Association (PFA) that the EFL was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing ‘Squad Salary Caps’.

“In August 2020 following an extensive and comprehensive consultation process with EFL clubs, Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).

“The PFA argued that the PFNCC’s remit to consider matters relating to the employment of, and any associated rules and regulations to professional players employed by EFL clubs, was not properly considered as part of the process to introduce the new rules and as a result served a notice of claim to that effect.

“The EFL and PFA then agreed to refer that matter to arbitration and after hearing submissions from both parties, an independent panel concluded that the EFL was in breach of its agreement as a member of the PFNCC.

“At the time of the adoption of the Salary Cap Rules, the EFL included a provision to ensure that any decision such as this would have the effect of reinstating the SCMP rules that were in operation during season 2019/20, which links player related expenditure to turnover.

“The EFL will now discuss the matter of financial controls and implications linked to this outcome at a series of meetings with its member clubs later this week.”

The PFA was unsurprisingly delighted by the news: The PFA welcomes the fact that the salary cap rules are automatically withdrawn and hopes to open constructive dialogue to agree reasonable cost control measures for the future.

“Like everyone involved in football, the PFA wants to see sustainable clubs at all levels.

“The PFA believes it is now in the best interest of the leagues, the clubs, and the players to work together and agree on rules that promote financial stability.”

Photo: Matchday Images

jong75 added 15:02 - Feb 9 Can we afford to buy players again?? Over to you Mr Evans.
2

BlueandTruesince82 added 15:06 - Feb 9 Great news! Nothing to hide behind next year
11

IpswichToon added 15:06 - Feb 9 That's pretty hard on on the lads who have signed contracts since this came into force then, right? They'll have every right to argue that their contract would have been more lucrative had the 'unenforceable' salary cap no been in place at the time of signing their contract!
11

Cloddyseedbed added 15:11 - Feb 9 Evans will be gutted!
9

BaddowBlue1 added 15:13 - Feb 9 I am pleased with this as I could see quite a few professionals over a certain age being unable to find a club next season given the salary cap limitations.
5

FrankMarshall added 15:16 - Feb 9 Very important for us but will now be interesting to see what is introduced as an alternative.
0

BeattiesBackPocket added 15:16 - Feb 9 So to those fans hiding with evans behind the wage cap and the reason we're letting players leave for nothing in the summer who we have paid fees for (contributing towards the debt substantially) I expect those players out of contract we have paid fees for will be negotiating extensions? Don't get me wrong there are some at the club we just need to offload but there are players we should have gotten fees for who we won't now! I'm sure there will be new excuses now.

1

stocktractor added 15:18 - Feb 9 good now lets just get rid of Lambert and Chambers and we may have a chance
-3

rfretwell added 15:20 - Feb 9 What a huge surprise this is! I dont think many fans knew the salary cap format was being appealed. Great news for the bigger clubs, perhaps a regime that controls players wages as a percentage of club turnover will eventually replace it after all.
2

positivity added 15:28 - Feb 9 good, zero reason for evans to want to stay in league one now then!
4

BlueRaider added 15:35 - Feb 9 Good news for us, bad news for the game though I think. Seems odd that rugby has had a similar squad cap for several years, is that illegal too ?
5

PortmanTerrorist added 15:48 - Feb 9 A week too late ! Trust no one in/owning the Club see this as a release of pressure on this season; promotion is still the only acceptable outcome for this Club, THIS season.
4

therein61 added 15:48 - Feb 9 Surely contracts signed with the salary caps forthcoming rules would be void now it's been scrapped?
0

blues1 added 15:53 - Feb 9 This ruling wont change the situation at clubs, regarding transfer fees being paid. As the terms of the premier league bailout, are that no1 could pay transfer fee in january. And that no club in league 1 can pay out transfer fees over £20,000 in total over the 2 windows next season. Anyone who does, has to pay back money from the bailout they received. Si all this does is mean you can pay more in wages.

0

Bert added 15:54 - Feb 9 Good for our club and good for football. The principle was fine but just like the poll tax it was proportionately unjust. Our owner will not be able to hide behind this now but conversely it could be less of an incentive to escape from this wretched league. Who knows what is in his head but nobody can say he hasn't financed loan moves. I say that for balance !
-1

hoppy added 15:54 - Feb 9 Announced just after the transfer window closed... great timing!
2

timkatieadamitfc added 15:57 - Feb 9 @blueraider - rugby is not a multi billion pound sport, not saying it is right/fair just the reason
0

dyersdream added 15:59 - Feb 9 hooray lets go spend big
0

Bluearmy_81 added 16:02 - Feb 9 Jong, we can buy players but we won't be as evans has shown he has no interest getting the club out of the mess he has got it in to...
2

timetraveler added 16:04 - Feb 9 Strange how the EFL have only announced this after the transfer window closes. It also I think calls into question the ethics of those clubs that voted for the cap so they could hamper the ambitions of clubs that had more financial resources. Perhaps they should have points deducted for manipulation of the system to their benefit 😆
1

jong75 added 16:09 - Feb 9 Bluearmy 81, i know, i was trying to be sarcastic. We went down the loan route in January due to the salary cap, wonder what the next excuse will be. I also agree that Evans doesnt care about the football club, but uses it to the benefit of Marcus Evans. Sad, but true, in my humble opinion.
1

Dolphinblue added 16:21 - Feb 9 Always going to be scrapped...absurd idea, common sense prevails COYB
3

Portman_Pie added 16:22 - Feb 9 Perfect...! Now time to dispose of this fraud with a football manager who can take us back up either remainder of the season or next - something Shambert point blank will not achieve
2

62WasBest added 16:23 - Feb 9 Just another nail in the coffin of professional football. The financing of football is totally distorted by TV and small clubs will just get smaller whilst the fat cats will grow bigger. How long before the smaller clubs officially become nothing more than feeder clubs? The whole pyramid has been steadily going down hill since the Premier League breakaway. It is no coincidence that a cohort of clubs would happily rather be in a European League than the Premiership these days. They follow the money but they may come to realise that the gravy train eventually will hit the buffers as most fans in this country aren't interested in the Big 6 or so and then it will be worldwide TV audiences that rule entirely.

5

Pencilpete added 16:31 - Feb 9 Oh no, ME will have to come up with another excuse for not investing now .....
1

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