EFL Clubs Agree to League One and Two Salary Caps

  • August 07, 2020 | By Chris Mann
  • URL Short URL: http://b-ac.es/32f77

Clubs in League One and League Two have agreed to the introduction of 'Squad Salary Caps', which are to be implemented with immediate effect.

After months of speculation, discussion and delayed votes, clubs in League One will be subject to a £2.5million cap whilst those in League Two - including Bolton - will work within a £1.5million limit.

To eradicate any potential loopholes, the EFL have confirmed total salary spending will take the following payments into account:

- Basic Wages
- Taxes
- Bonuses
- Image rights
- Agents' fees
- Other fees and expenses paid directly or indirectly to all registered players

Payments and bonuses related to progression in cup competitions are excluded from, while income generated from players going out on loan to other clubs can be deducated from any calculation.

Any contract entered into prior to August 7, 2020, will be valued at an unspecified divisional average until such time that the terms of that deal expire, whilst clubs suffering relegation will be permitted to cap all contracts at the divisional average prior to their demotion, again, until those respective deals expire.

Punishments for exceeding the salary cap by more than 5% will be decided by an Independent Disciplinary Commission, with the EFL proposing a financial penalty for every £1 in excess - with the exact figure dependent upon the percentage 'overrun'.

David Baldwin, CEO of the EFL, said: "The term 'salary cap' is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations.

"The financial impact of COVID-19 will be profound for EFL Clubs and today's vote will help ensure Clubs cannot extend themselves to the point that could cause financial instability.

"Over the last two weeks the discussions amongst Clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the Clubs have determined to adopt the new approach.

"We will now work with all Clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL."

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Pos Team Pld Pts
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20 Tranmere Rovers 2 1
21 Bolton Wanderers 2 0
22 Oldham Athletic 2 0
23 Grimsby Town 2 0
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