The Football League says it wants the PFA to agree to the inclusion of relegation pay-cut clauses in all contracts signed after the summer of 2003. Town's current financial problems are in the main due to the vast difference in income between the Premiership and the First Division.

John Nagle, head of communications for the League, says that although wages are not always entirely the problem facing clubs on relegation, they are a big factor: "I don't think the League would suggest players' wages are the sole cause of the game's financial problems.

"The differential in wage levels between divisions has now become a genuine threat to the sustainability of clubs.

"There is widespread recognition that something needs to be done to give the market a fairer balance.

"We believe that divisional pay could be the answer.

"It would stop clubs committing themselves to wages that are completely unsustainable in the event of relegation in a desperate attempt to remain competitive in the higher division."

Town chairman David Sheepshanks recently defended the club's failure to put in place such status payments when they offered new contracts in the summer of 2001. He told TWTD: "That is something that is easy to point to now with hindsight, as market conditions are so different.

"As we got to summer 2002, when the market started to crash, the boot started to go to the other foot and then it became possible to negotiate status payments.

"We had status payments with our players in Division One when we were promoted, so that when they were promoted they got an immediate rise and if they got relegated they went back to Division One rates.

"When we got into the Premier League we couldn't have attracted the players we wanted on that basis. If you try and say to David Beckham that your wage will go down if Manchester United don't qualify for the Champions' League, you're not going to get a positive answer. It doesn't happen.

"In addition agents would not accept contracts like that for their players. They'd say their player could move elsewhere in the Premiership. Everybody said the same thing. The mood of the country was that there were no reductions on relegation."

With the situation in football vastly changed Sheepshanks feels that all clubs will include stus payments in the future: "Going forward, I bet you within another year or two not just 90% but 100% of clubs will have status payments."

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