PFA to fight salary caps
Himpact of Covid-19 driving action to control wage inflation HMP Knight applauds clubs’ ‘common-sense’ approach
The Professional Footballers’ Association says it will fight squad salary caps agreed by League One and Two clubs and has called them “unlawful and unenforceable”. Third and fourth-tier clubs have voted in favour of caps of £2.5million and £1.5million respectively after Covid-19 hit English Football League finances.
The English Football League and Professional Footballers’ Association were on a collision course last night after clubs in Leagues One and Two voted in favour of the introduction of salary caps.
Fixed caps of £2.5 million for League One and £1.5 million for League Two have been approved after a vote by clubs yesterday.
The EFL said the caps would take effect immediately, confident its rules were binding between the league and clubs. It also expressed hope the caps would help to get wage inflation under control and bring greater financial stability after the Covid-19 crisis exposed the fragility of many clubs.
But the PFA described the caps as “unlawful and unenforceable” and warned that they must remain on hold until after arbitration, raising the spectre of a legal battle.
In a strongly worded statement, the PFA – frustrated by what it perceived as a lack of consultation – said: “The EFL has ignored its legal obligation to consult with the PFA and the Professional Football Negotiating and Consultative Committee. As such, the legal advice we have received is clear that the salary cap envisaged by the EFL would be unlawful and unenforceable.
“The PFA has already served its notice of arbitration on the EFL and until such time as that arbitration is determined, the new regulations should have no effect.”
It is understood that 22 League Two clubs voted in favour, with just two against. In League One, 16 of the 23 clubs were in support. A twothirds majority was required for the caps to be approved.
As well as basic wages and taxes, the cap on total salary spending includes bonuses, image rights and agents’ fees, while payments earned from a successful cup run or promotion will be excluded.
Discussions continue with Championship clubs over proposals for their own salary cap.
Clubs in the third and fourth tiers who exceed the cap by up to five per cent will be subject to a scaled “luxury tax”, with the money raised from financial penalties redistributed among compliant clubs. Further breaches would be referred to a disciplinary commission.
Allowances will be made for relegated clubs and those with players already tied to lucrative long-term contracts. Any contract entered into on or prior to yesterday’s vote will be capped at an agreed “divisional average” until that contract expires.
Julian Knight, the chair of the Digital, Culture, Media and Sport committee which recommended a cap in a report issued last month, said the move was evidence of a “breaking out of common sense amongst league clubs”.
He added: “For a long time, the flawed business model of much of football has been as clear as day, but it’s taken the biggest financial crisis in English football since the war for some action.
“Let’s see if more realism now permeates the Championship, where player wages incredibly outstrip club turnover.