League Two salary cap plans are withdrawn
The Football League have confirmed that, following an appeal, the plans for a League Two salary cap have been withdrawn.
In August 2020 following an extensive and comprehensive consultation process with Football League clubs, Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).
Under the plans, League Two sides would have been given a £1.25m salary cap. Fans of the scheme claimed that the proposals would prevent clubs getting into financial trouble by overspending. Fines would have been imposed on any clubs who exceeded the cap for their division.
However, the PFA argued that the League was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing ‘Squad Salary Caps. The PFA’s claim that the caps were “unlawful and unenforceable” was upheld by the independent arbitration panel.
The panel ruled that by introducing a cap the league was in breach of the constitution of the Professional Football Negotiating and Consultative Committee, which includes representatives of the PFA, the EFL, the Premier League and the Football Association.
As a result of the panel’s verdict, the Salary Cost Management Protocol (SCMP) regulations that were in place during the 2019-20 season and link “player-related expenditure to turnover”, have been reinstated by the Football League
The League will now discuss the situation with clubs at meetings later this week.
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