Salary caps introduced for League One and Two

Clubs in League One and Two have today voted through proposals that will see salary caps introduced with immediate effect.

The plans were initially proposed last summer following the issues which emerged at both Bolton Wanderers and Bury, but the financial implications of the coronavirus pandemic have fast-tracked the implementation of the salary caps.

A cap of £2.5million will be placed upon all 24 clubs in League One, although that does not include players aged 21 and under, while League Two clubs are capped at £1.5million.

EFL CEO David Baldwin 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.”

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 prior to the suspension of football in March following the COVID-19 outbreak and have continued during the course of 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 (SCMP), with fixed caps of £2.5million and £1.5million respectively.

"Discussions continue with Championship clubs in respect to amendments to their own financial controls. League One and Two clubs are also going to continue discussions towards the introduction of additional measures aimed at addressing club financial sustainability."