Salary caps introduced in League One and League Two

League One and League Two clubs have agreed to cap squad salaries effective immediately.

Discussions had already taken place prior to the outbreak of coronavirus to limit spending in the lower divisions, and clubs have agreed to introduce the Salary Cost Management Protocols (SCMP), with fixed caps of £2.5million for League One and £1.5million in League Two.

When calculating total salary spending, the ‘cap’ includes: Basic wages, taxes, bonuses, image rights, agents’ fees and and other fees and expenses paid directly or indirectly to all registered players.

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.”

READ THE FULL EFL STATEMENT HERE