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PFA was unsurprisingly delighted by the news: The PFA welcomes the fact that the salary cap rules are automatically withdrawn and hopes to open constructive dialogue to agree reasonable cost control measures for the future.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

theipswichfile added 16:35 - Feb 9 This is great news, the system they brought in was so flawed it just served to trap anyone unfortunate enough to be in League 1 or 2 where they were ad infinitum. I still expect a clear out of sorts come the summer, we have been carrying some dead wood for some time, but this is a good result for us.
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cornishblu added 16:44 - Feb 9 IMHO ....dreadful decision This will mean more clubs go to the wall chasing the dream by employing incompetent managers that spend stupid money rewarding over rated journey men ..... The salary cap would have given a level playing field to a wider range of clubs , forcing improved management , better scouting systems , growth of home grown youngsters and stopped fans berating waste of money signings and players earning enormous salaries that don't then play for the badge . No one can explain why a person supports a club , it's in their blood , but if it happened to be Fleetwood the salary cap gave you hope that with a club not driven by revenue but by skill and competency then maybe you could dream of greater things ....this has now squashed the dreams of fans of probably 40 clubs ......and meant that we will continue to see clubs go to the wall due to heavy debt and overspending

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Suffolkboy added 16:45 - Feb 9 Hopefully revert to a more disciplined attention to managing Club and Football finances ; this may well mean some Professional clubs simply cannot and will not survive in their present form with the dodgiest of balance sheets and cash flow . So be it ; the overall health of the Sport and entertainment business will emerge the more healthy and prospects for the years ahead will be enhanced . In most respects ITFC is well managed ,with a well considered attitude to finance ,and should be well placed to advance the cause . L O'N will find many burdens lifted and uncertainties removed ; forward planning will now be more routine and pleasurable ,definitely less problematic . COYB

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keighleyblue added 16:47 - Feb 9 Well what a complete and utter waste of bloody time that was.
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heathen66 added 16:48 - Feb 9 Good news and bad news imo Good news that we can sign players (btw free transfers are just as lucrative as paying transfer fees in signing on fees and enhanced wage structures) and keep player that have a future rewarding them to re-sign Bad news is the mass exodus of the deadwood forced by the salary cap restrictions now no longer applicable. Many of the out of contract players will now get year long lucrative contract extensions and next season will be very much like this with a huge squad the manager feels he needs to keep rotating to keep everyone happy.

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blues1 added 16:48 - Feb 9 Bluearmy81. Showing ur ignorance as usual. Bo, that doesnt mean we an buy players. All it means is we can offer bigger wages than we could have under the cap. Even then it will depend on what alternative financial restraints the efl bring in to replace the salary cap. But also, under the rules of the premier league bailout, all clubs in lge1 can only pay transfer fees up to £20,000 over the 2 transfer windows next season.

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deano85 added 16:56 - Feb 9 Shame this wasnt announced 2 weeks ago... However, watch as all our stars now get them well earned contracts they need... But seriously, this would have seen a lot of unemployed footballers, so its good that common sence actually came through
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Texastom added 16:57 - Feb 9 This is BAD news for football in general. Unless we taper over inflated salaries and fees we will continue on our path of self destruct. You are mislead if you think it is good news for Town. In the longer run we will have more debt and feed the overpaid players and agents continuing with the myth that its just a distraction.
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TJS added 16:59 - Feb 9 Great news - if you only average 2000 supporters stop spending like you average 20,000
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Texastom added 16:59 - Feb 9 62WasBest = Best post I have seen on here for a long time.
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EatonBlue added 16:59 - Feb 9 Hooray for trade unions.
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blues1 added 17:02 - Feb 9 Pencilpete. It doesnt actually matter if he wants to or not. Under the pl bailout we can only pay up to £20,000 in transfer fees over the next 2 windows. What it does do tho, is enable us to pay the kind of wages we already are. Unless whatever the efl bring in to replace the cap prevents us doing so.
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alfromcol added 17:06 - Feb 9 Only the monitored grant from the Premiership is subject to restrictions: A further £20m monitored grant will be provided and clubs can apply based on need. A joint Premier League and EFL panel will determine club eligibility. Clubs receiving a monitored grant will be subject to restrictions with respect to transfer spend and player wages.
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Texastom added 17:06 - Feb 9 SuffolkBoy, cornishblu and blues1 = ALL SPOT ON. All it means is we will continue with inflated salaries and have more debt. BAD DAY FOR FOOTBALL
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algarvefan added 17:07 - Feb 9 It was always a stupid idea anyway!!
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jabberjackson added 17:12 - Feb 9 Good, it was a ludicrous idea. Football clubs are businesses and they should be able to run themselves how they like, even if it is into the ground
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SamWhiteUK added 17:12 - Feb 9 That previous article aged well
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Saxonblue74 added 17:16 - Feb 9 Liked the idea in principal but would only be effective and fair if it went through all leagues, premier included. Shame it took until a week after the transfer window!
2

Steve_ITFC_Sweden added 17:16 - Feb 9 Of course, what might have been better would have been a salary cap for ALL divisions, or a 90% tax on Premier league wages above a certain figure. But I guess our economically liberated society wouldn't stand for that.
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marco5113 added 17:20 - Feb 9 will reflect true financial stability of ipswich town fc now
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Bert added 17:35 - Feb 9 An "easy read" version of this would be helpful to both sides of the argument. Lots of opinions on this but few facts. Let's see how the decision actually plays out then we can judge.
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therein61 added 17:37 - Feb 9 That's altered things then it means that the overpaid senior pros who have cost us dear will be crawling round Marcus for a new contract rather than being shown the door.
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BlueNomad added 17:41 - Feb 9 Peens, I thought you would be back for this and your comment very predictable. I believe this club voted against the salary cap. Sorry if that doesn't fit your agenda.
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Karlosfandangal added 17:46 - Feb 9 If the salary cap had been scrapped earlier would we have gone for the players we have on loan or would Town tried to buy instead. First look at loan players and they looked pretty good, but early days if Town do go up then Harrop and Thomas would be in Towns reach. Parrot and Moreson would be out of Town reach. Lots of its and buts in my post above. We will see after the match tonight (Peterborough)

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DerbyBlue76 added 17:59 - Feb 9 Football is totally unstainable and this surely just adds to the problem. All clubs, except a few at the very top are reliant on a rich benefactor and if they decide to pull out, then the club will go bust. For the good of football something major needs to change
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