Friday, 15 May 2020


Clubs in League One and League Two to Receive Salary Cap Proposals Over the Weekend

Clubs in League One and League Two to Receive Salary Cap Proposals Over the Weekend

As club officials continue to meet in order to thrash out an agreement on if, how and when the 2019/20 season will resume, EFL chairman Rick Parry has admitted that clubs are facing £200m financial hole as a result of the ongoing coronavirus pandemic.
Amongst a plethora of options are a recently proposed - and seemingly preferred - salary cap which will be further investigated as a new proposal is expected to be sent to League One and League Two clubs over the weekend.

Further moves to implement cost controls have been led by a working group, which is expected to distribute proposals to clubs over the coming days, as teams continue to count the cost of Covid-19.

Chairman Parry admitted last week that a salary cap and other cost control measures were "absolutely essential" as clubs in the lower reaches of the EFL continue to struggle with the financial burdens of operating a football team without matchday income.

Parry, speaking to a Digital, Culture, Media and Sport committee last week, said; "There is a lot of debate going on about that at the moment.

"We have an imbalance in the distribution, we have the parachute payments which cause immense stress within the Championship so yes I do think the distribution model is a problem.

"Any model where wages are 106 per cent of turnover is ridiculous."

Chairman of League Two side Forest Green Rovers, Dale Vince, has recently shown his support of the introduction of a cap, even going as far as to suggest fixed amounts of £3.6m for League One clubs and £2m for teams in League Two.

Vince said; "We can all see the problems every year, there are a couple of clubs that just about make it to the end of the season - or don't - and go into administration. A player wage cap would be a way to control that.

"The amount of money that gets spent by some clubs would then relieve the pressure on other clubs to match it - it becomes an arms race.

"You get the odd individual who just operates on the very edge of insolvency and legality. With a wage cap, people like that would be more constrained and less able to do real harm."

Dale went on to admit that he hoped a salary cap could be agreed and come into effect for the 2020/21 campaign, adding; "It's something that can be agreed now. We've got this downtime to work on the details, and put it in place ready."

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