I’ve got the energy for Cats! Business boss confirms bid:
League One clubs have voted to bring in a salary cap, the EFL has announced.
It has been agreed to bring in a £2.5m per-year wage restriction in the third tier in a bid to make the game more sustainable.
There will be transitional arrangements in place but it is a major blow to Sunderland, whose wage bill at the start of last season stood at £10m, and who have consistently voiced their concerns over a flat wage cap, along with promotion rivals Portsmouth.
When calculating total salaryspending,the‘cap’includes basic wages, taxes, bonuses, image rights, agents fees and other fees and expenses pertaining directly or indirectly to all registered players.
An EFL statement read: “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 respectivedivisionswhichtake effect immediately.
“The decision follows extensive and comprehensive consultation with all clubs in respectofaddressingsustainabilityandwageinflationissues 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 (Friday’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 £2.5million and £1.5million 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.”
The EFL statement added: “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 addressingcommitted 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‘ over run’ concept is also included if a club’s total squad salary payments exceed the cap by up to 5%, whereby dependent on the percentage level of the over run, a financial penalty would be payable for every £1 in excess.
"Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission, although theEFL will monitor the cap on a realtime 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 appropriateby an independent Disciplinary Commission .”