Plans for Salary Caps for League One and Two of English Football League Withdrawn

Plans for Salary Caps for League One and Two of English Football League Withdrawn.

AN independent arbitration panel upheld the Professional Footballers’ Association (PFA) claim that placing salary caps on the EFL league was “unlawful and unenforceable.”

The panel said the introduction of ‘Squad Salary Caps’ was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC).

Third-tier clubs would have been given a £2.5m ceiling for salaries and fourth-tier sides £1.25m under the proposals.

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), however, 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.

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.

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.

Both leagues will now revert to the previous SCMP which for L1 means clubs can spend up to 60 per cent of their turnover on player-related expenditure. Players U21 excluded.

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