PFA will fight League One salary cap
The Professional Footballers Association claims a salary cap in League One is ‘unlawful and unenforceable’ after clubs – including Shrewsbury Town – backed its introduction.
New rules will see annual playing budgets in the third tier limited to £2.5million, with those clubs who exceed it facing a fine or potentially even stronger sanctions.
Wages, bonuses and agents fees relating to players aged 21 or over will be included within the cap, though income gained from promotion or progression in cups are exempt.
Town were among 16 clubs in the division who voted in favour of the cap but the PFA is preparing to put up a fight and has served notice of arbitration on the EFL, claiming it ‘ignored its legal obligation to consult with the PFA and the Professional Football Negotiating and Consultative Committee’.
A PFA statement continued: “Until such time as arbitration is determined one way or another the new regulations should have no effect.”
The introduction of the cap is a hugely significant development and follows extensive talks between clubs over how best to tackle the issue of rising wages and spiralling costs following the impact of the coronavirus pandemic.
Shrewsbury chief executive Brian Caldwell had previously made clear his broad support for introducing measures to help control costs. Clubs in League Two have agreed to introduce a cap of £1.5m.
EFL chief executive David Baldwin said: “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 among clubs in both Leagues One and Two have been healthy and constructive.”