League One and League Two clubs have voted to implement a salary cap, and the English Football League is confident the measures can take immediate effect despite the Professional Footballers’ Association describing them as “unlawful and unenforceable”.
The EFL believes its rules are binding between the league and clubs. The PFA said the caps must remain on hold until after arbitration and that it had served notice on the league, claiming the EFL had “ignored its legal obligation to consult with the PFA and the Professional Football Negotiating and Consultative Committee”.
The Guardian understands discussions involving the EFL and PFA have taken place at the PFNCC.
It is understood League Two clubs voted 22-2 in favour of a £1.5m cap; the ballot in League One for a £2.5m cap was tighter, with 16 clubs in favour, seven against and one withholding their vote. Wages, bonuses, image rights and agents’ fees are covered by the cap, although bonuses related to cups or promotion are excluded.
Clubs also agreed to maximum 20-man squads, although players under the age of 21 will be exempt from this and the salary cap, and squads of 22 will be allowed in 2020-21 in a transition season.
Penalties have been agreed for clubs who exceed the cap by up to 5%, with fines rising to £3 for every £1 of overspend. Money collected will be redistributed among clubs who have stayed within the rules. A disciplinary commission will deal with clubs who break the cap by more than 5%.
Southend, relegated to League Two, are understood to be one of the clubs to have voted against the cap. Forest Green voted in favour, with their owner, Dale Vince, saying it would prevent financial “recklessness”.
He told the Guardian: “It will bring sustainability, it will stop the profligate spending that gets one or two clubs into trouble, like Bury last season, and it will stop the recklessness. Budgets in the division last season would have varied between £1m and £5m, but with a cap of £1.5m it should make for a tighter league.”
Discussions are ongoing in the Championship with regard to controlling costs but nothing is expected for the 2020-21 season. Some clubs previously suggested a cap in the region of between £18-20m may be suitable.
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