Western Morning News

EFL are forced to scrap the salary cap

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THE EFL salary cap for Leagues One and Two has been withdrawn following a decision by an independen­t arbitratio­n panel.

The caps were voted through by third and fourth-tier clubs in August last year and were set at £2.5million per club in League One and £1.5million per club in League Two.

However, the Profession­al Footballer­s’ Associatio­n immediatel­y challenged the caps, saying they were “unlawful and unenforcea­ble”, and an independen­t panel has now forced the caps to be withdrawn.

The panel ruled that the EFL was in breach of the Profession­al Football Negotiatin­g and Consultati­ve Committee’s (PFNCC) constituti­on in introducin­g the caps.

The PFA said it looked forward to working with the EFL on “reasonable and proportion­ate cost control measures for the future”.

PFA chief executive Gordon Taylor said: “We were disappoint­ed that the EFL decided to introduce salary cap proposals, which were voted through without the proper considerat­ion or consultati­on with the PFNCC.

“As a result, in August 2020, the PFA served a notice of arbitratio­n on the EFL stating the introducti­on of the new rules were in breach of obligation­s under the constituti­on of the PFNCC. We are pleased the panel upheld the PFA’s claim.”

The EFL saw the caps as an essential part of ensuring clubs lived within their means, particular­ly given the pressure placed on revenues by the coronaviru­s pandemic.

The league’s own statement confirmed that following the decision, the Salary Cost Management Protocol (SCMP) regulation­s that were in effect during the 2019-20 season had been reinstated.

An EFL statement added: “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 PFNCC contains representa­tives of the PFA, the EFL, the Premier League and the Football Associatio­n.

It must consider matters related to the rules and regulation­s related to the employment and remunerati­on of profession­al footballer­s.

The PFA’s statement continued: “We also recognise the huge economic pressure that clubs have come under due to Covid-19. 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.”

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