EFL Salary Cap Withdrawn with Immediate Effect

  • February 09, 2021 | By Chris Mann
  • URL Short URL: http://b-ac.es/9e772

'Squad Salary Caps' which were introduced to League One and League Two in August 2020 have been withdrawn with immediate effect.

At the beginning of the campaign, member clubs voted to approve a £2.5million cap for League One, whilst those in League Two - including Bolton - were placed under a cap of £1.5million which had to cover the cost of basic wages, taxes, bonuses, image rights, agents' fees and other expenses paid either directly or indirectly to all registered players.

The Professional Footballers' Association immediately voiced their displeasure at the introduction of a salary cap, however, and lodged and appeal to have the decision overturned.

A hearing of an independent panel on Monday adjudged the EFL to have been in breach of their agreement with the Professional Football Negotiating and Consultative Committee, meaning clubs will now be able to spend freely on wages until a suitable alternative can be jointly agreed.

An official statement, posted at EFL.com, read: "An independent arbitration panel has upheld a claim from the Professional Footballers' Association (PFA) that the EFL was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing 'Squad Salary Caps'.

"In August 2020 following an extensive and comprehensive consultation process with EFL Clubs, Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).

"The PFA argued that the PFNCC's remit to consider matters relating to the employment of, and any associated rules and regulations to professional players employed by EFL Clubs, was not properly considered as part of the process to introduce the new rules and as a result served a notice of claim to that effect.

"The EFL and PFA then agreed to refer that matter to arbitration and after hearing submissions from both parties, an independent panel concluded that the EFL was in breach of its agreement as a member of the PFNCC.

"At the time of the adoption of the Salary Cap Rules, the EFL included a provision to ensure that any decision such as this would have the effect of reinstating the SCMP rules that were in operation during season 2019/20, which links player related expenditure to turnover.

"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."

Former Bolton Wanderers winger, who is the current Chief Executive of the Professional Footballers' Association, believes the decision of the panel was correct, despite the current financial instability of the professional game.

"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," Taylor told thepfa.com.

"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."

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