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Clubs Impose Salary Cap

By: Rob Sedgwick
Date: 09/08/2020

CLUBS in League One and League Two have voted for a self-imposed salary cap to stop clubs overextending themselves. League One sides have a limit of £2.5m per annum and League Two £1.5m. There are various clauses to exclude players already under contract.

In Town's case, it is not hugely expected to affect their spending power as it is largely in line with their existing budget and most of their squad signed contracts before the cap being imposed.

The richer and better-supported clubs are the ones hardest hit, especially teams like Portsmouth and Sunderland who (when there wer such things) could attract 5 figure attendances.

However, the PFA are legally challenging the plans saying they are "unlawful and unenforceable". If the players' union succeed in their challenge it might give the green light for those clubs who voted against the proposal to ignore it. That remains to be seen.

An EFL statement said: "The decision follows extensive and comprehensive consultation with all clubs in respect of addressing sustainability and wage inflation issues across the EFL, which were initiated before the suspension of football in March following the Covid-19 outbreak and have continued during the summer.

"Those discussions culminated in today's divisional vote, with representatives of League One and League Two clubs opting to implement the new measures in place of the existing salary cost management protocols."

The English football season is due to start next month, although there is still no suggestion of when fans will be allowed back in grounds, and with local lockdowns still in place in some areas, matches are liable to be postponed, as has happened in Scotland where the SPL has begun.

Grimsby have not played a game since 17th March, the longest hiatus since WW2.

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