League 1 & 2 Squad Salary Cap and Squad Size Restrictions

[Tippy Tappy Football]

Some info on the squad salary cap and squad size proposals for League 1 and League 2 from the Doncaster Free Press. It says they are proposing a £1.5 million squad salary cap for League 2 which the Stags have probably exceeded for the last four seasons. In fact, we have probably exceeded the proposed League 1 squad salary cap of £2.5 million for the last three seasons. We probably had a similar playing budget to Donny Rovers last season of between £2.5-£3 million which is said to be the 6th-8th best in League 1.


WHAT WILL THE WAGE CAP INVOLVE?
All clubs in League One would be restricted to a squad salary cap of £2.5m per season. There would be no variation from club to club based on income and revenue. In League Two, the wage cap would be £1.5m (BBC website says £1.25 million). Dale Vince has suggested fixed amounts of £3.6m for League One clubs and £2m for teams in League Two.

Any promotion-related bonuses would not be included within salary cap restrictions.

Discussions will take place on potential punishments for those who breach salary cap regulations but it is thought that points deductions are favoured.

WHAT ELSE IS BEING PROPOSED?
It has been reported that clubs will be asked to vote on whether or not to limit squad sizes to 20 senior players - those aged 21 or over. Squad sizes up to 22 senior players would be permitted for the first year.

Within that 20, it is suggested that eight should be 'homegrown' players. Current EFL 'homegrown' regulations state a player should have been registered with his current club or another club affiliated to the FA or Welsh FA for three or more seasons prior to their 21st birthday. 'Homegrown' is a different category to 'club developed' players. Clubs are currently obliged to name seven 'homegrown' players in any matchday squad.

Further to the proposed new squad restrictions, and with the goal of driving youth development, there would be no restriction on the number of players aged 20 or under in a squad.

Also, regulations will be put in place to ensure any club which fails to pay its players on time will be hit with automatic points deductions. Previously, clubs have been taken to EFL disciplinary panels to determine punishments.

WHEN WILL THIS COME INTO PLAY?
The proposals would require the backing of 75 per cent of clubs to be passed, according to reports. Discussions and a deciding vote are unlikely to take place until the fate of the 2019/20 season across the EFL divisions is decided. The EFL are thought to want the measures in place for the start of the 2020/21 season, though will provide some initial leniency to allow clubs to fall into line.

Clubs relegated from the Championship would be permitted one season to transition into the wage restrictions.

HOW WOULD THIS AFFECT ROVERS?
Rovers' playing budget is consistently pitched to be around the sixth to eighth best in League One. On estimated figures, this equates to between £2.5m and £3m per season.

https://www.doncasterfreepress.co.uk/sp ... rs-2861910

https://www.skysports.com/football/news ... -by-monday

https://www.bbc.co.uk/sport/football/52738597

[cassellswasmagic]

“Any promotion-related bonuses would not be included within salary cap restrictions”.

Here’s Stags get out clause. You could get the best players, by giving out the highest promotion bonuses. Maybe £1M between the squad!!! That takes it back to £2.5M. I find it hard to believe that’s not included as a child could get round that one.

[MTFCMAD]

“Any promotion-related bonuses would not be included within salary cap restrictions”.

Here’s Stags get out clause. You could get the best players, by giving out the highest promotion bonuses. Maybe £1M between the squad!!! That takes it back to £2.5M. I find it hard to believe that’s not included as a child could get round that one.

It’s probably still more risk free than the current set up though. The new system looks designed to create profitable clubs. Total wage bill would end up being around £2.5m -£3m inc coaches, Office staff and what not.

I hope it’s introduced along with the points penalty for failing to pay wages.

Players may now also factor in on joining clubs with better facilities and stuff which is where our training ground and hopefully new Bishop street stand and maybe but probably not now the proposed hotel.

[arsene wengers coat]

Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but because L1&2 clubs aren't bank rolled we have to have to all be subjected to Draconian punitive measures a across the board. What we have is an opportunity for betterment whipped from underneath us because we're not bankrolled, while the bankrolling gaps in the premier League remain massive, uncontrolled and growing.

It's like a proposal to keep clubs that are down and out, down and out.

The FA, for me, are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. We need self governance because the FA certainly aren't fit to do it. Clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that businesses (and clubs) will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. What the cap will do is reduce the gap between the worst and the best in L1&2 unfairly, while simultaneously widening the gap between L1&2 and the Championship. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

Society is in a mess now but competing companies in other industries do not have interventionist restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances. Plan for the future, be resilient and dynamic dont rely on handouts and bailouts. Those that can't or don't will and should get relegated or worse still. But that's life I'm afraid.

We do need to protect the integrity of our league, but holding back Sunderland because Rochdale can't pay it's bills is not the way. A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

[cassellswasmagic]

“Any promotion-related bonuses would not be included within salary cap restrictions”.

Here’s Stags get out clause. You could get the best players, by giving out the highest promotion bonuses. Maybe £1M between the squad!!! That takes it back to £2.5M. I find it hard to believe that’s not included as a child could get round that one.

It’s probably still more risk free than the current set up though. The new system looks designed to create profitable clubs. Total wage bill would end up being around £2.5m -£3m inc coaches, Office staff and what not.

I hope it’s introduced along with the points penalty for failing to pay wages.

Players may now also factor in on joining clubs with better facilities and stuff which is where our training ground and hopefully new Bishop street stand and maybe but probably not now the proposed hotel.

[cassellswasmagic]

Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but now we have to have an opportunity for betterment whipped from underneath us, while the gaps in the premier League remain massive and uncontrolled.

It's like a proposal to keep clubs that are down and out, down and out.

We need self governance. clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that clubs will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

The FA, for me are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. Society is in a mess now but competing companies in other industries do not have interventionis restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances, those that can't or don't will get relegated or worse still.

A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

There’s a Nail. There’s a head. Hit nail on head!!!

[garlic]

Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but because L1&2 clubs aren't bank rolled we have to have to all be subjected to Draconian punitive measures a across the board. What we have is an opportunity for betterment whipped from underneath us because we're not bankrolled, while the bankrolling gaps in the premier League remain massive, uncontrolled and growing.

It's like a proposal to keep clubs that are down and out, down and out.

The FA, for me, are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. We need self governance because the FA certainly aren't fit to do it. Clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that businesses (and clubs) will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. What the cap will do is reduce the gap between the worst and the best in L1&2 unfairly, while simultaneously widening the gap between L1&2 and the Championship. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

Society is in a mess now but competing companies in other industries do not have interventionist restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances. Plan for the future, be resilient and dynamic dont rely on handouts and bailouts. Those that can't or don't will and should get relegated or worse still. But that's life I'm afraid.

We do need to protect the integrity of our league, but holding back Sunderland because Rochdale can't pay it's bills is not the way. A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

I get the gist of your argument but fail to understand why the Premier League shouldnt also face a salary cap? Personally, I think the way forward is to close the funding of clubs through the tax loophole, so all external funding, loans, gifts,etc should be in the form of bought shares so there is no debt and there is no incentive to pile debt onto a football club. The next step of course is to have a fixed debt to income ratio, which would apply to all clubs, even the Premier League so that current debt levels must be reduced to that ratio before any more income is spent.

[groundhoppingstag]

Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but because L1&2 clubs aren't bank rolled we have to have to all be subjected to Draconian punitive measures a across the board. What we have is an opportunity for betterment whipped from underneath us because we're not bankrolled, while the bankrolling gaps in the premier League remain massive, uncontrolled and growing.

It's like a proposal to keep clubs that are down and out, down and out.

The FA, for me, are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. We need self governance because the FA certainly aren't fit to do it. Clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that businesses (and clubs) will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. What the cap will do is reduce the gap between the worst and the best in L1&2 unfairly, while simultaneously widening the gap between L1&2 and the Championship. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

Society is in a mess now but competing companies in other industries do not have interventionist restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances. Plan for the future, be resilient and dynamic dont rely on handouts and bailouts. Those that can't or don't will and should get relegated or worse still. But that's life I'm afraid.

We do need to protect the integrity of our league, but holding back Sunderland because Rochdale can't pay it's bills is not the way. A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

I get the gist of your argument but fail to understand why the Premier League shouldnt also face a salary cap? Personally, I think the way forward is to close the funding of clubs through the tax loophole, so all external funding, loans, gifts,etc should be in the form of bought shares so there is no debt and there is no incentive to pile debt onto a football club. The next step of course is to have a fixed debt to income ratio, which would apply to all clubs, even the Premier League so that current debt levels must be reduced to that ratio before any more income is spent.

I'm liking your proposal for debt to income ratio.

[MTFCMusings]

[part time pete]

If it is true, then Belly would be posting ‘I told you so’ as he was saying all along that the salary cap was unlawful.

[BH_Stag]

Looks like it’s been scrapped, happy with that. The onus should be on clubs to keep their own house in order and the EFL clearly need to do more to ensure we don’t have any more Bury’s, but I don’t think the salary cap was the way to do it personally.

[Sandy Pate Best Stag]

If it’s to be overturned it’s a pity it didn’t happen before the transfer window closed.

It may help some wealthier clubs as I’m sure there must be a few big earners out there who are free agents and may want to play before the summer. Could be interesting who would be willing to drop to league 2 level to get game time.

[MTFCMusings]

I didn’t agree with it in the first place, so I’m pleased with this.

[Sneag]

If it is true, then Belly would be posting ‘I told you so’ as he was saying all along that the salary cap was unlawful.

Even a busted clock is right twice a day.

[arsene wengers coat]

This is good news. I think it's fair to have done this after the window as it ensures an even season for all clubs. Not that I agreed with it in the first place. clearly there is one eye on the future here. Hopefully gives NC the ability to manage his budget in accordance with the players on his wanted list.

[MTFCMusings]

Can we have Maynard and Cook back now?

[88BenM]

Wasn't JR at the forefront of proposing the salary caps?

[Conker]

JR wanted a cap, not sure if he agreed on the limit though.

[Torrystag]

Dont think he has to worry about young cloughie wasting his cash

[Dan]

https://www.bbc.co.uk/sport/football/55997868

The English Football League's plans for salary caps in Leagues One and Two have been withdrawn following a decision by an independent arbitration panel.

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

But a claim by the Professional Footballers' Association that the caps were "unlawful and unenforceable" was upheld by the panel.

EFL clubs will now discuss the situation at meetings later this week.

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.

"Like everyone involved in football, the PFA wants to see sustainable clubs at all levels. We also recognise the huge economic pressure that clubs have come under due to the Covid-19 crisis," the players' union said in a statement.

"The PFA believes it is now in the best interest of the leagues, the clubs, and the players to work together and agree on rules that promote financial stability."

Wages, bonuses, taxes and image rights, plus agents' and other relevant fees, were to have been included within the cap, but bonuses gained from promotion or progression in cups would have been exempt.

Fines would have been imposed on any clubs who exceeded the cap for their division.

Speaking following last August's vote, EFL chief executive 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."

He added that the measure was intended to "help ensure clubs cannot extend themselves to the point that could cause financial instability".

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 EFL.

[I am Spartacus]

https://www.bbc.co.uk/sport/football/55997868

The English Football League's plans for salary caps in Leagues One and Two have been withdrawn following a decision by an independent arbitration panel.

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

But a claim by the Professional Footballers' Association that the caps were "unlawful and unenforceable" was upheld by the panel.

EFL clubs will now discuss the situation at meetings later this week.

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.

"Like everyone involved in football, the PFA wants to see sustainable clubs at all levels. We also recognise the huge economic pressure that clubs have come under due to the Covid-19 crisis," the players' union said in a statement.

"The PFA believes it is now in the best interest of the leagues, the clubs, and the players to work together and agree on rules that promote financial stability."

Wages, bonuses, taxes and image rights, plus agents' and other relevant fees, were to have been included within the cap, but bonuses gained from promotion or progression in cups would have been exempt.

Fines would have been imposed on any clubs who exceeded the cap for their division.

Speaking following last August's vote, EFL chief executive 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."

He added that the measure was intended to "help ensure clubs cannot extend themselves to the point that could cause financial instability".

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 EFL.

Who will save football from itself now? And what are the PFA going to do to assist this? How they are run and funded is linked to the TV deals, they will always favour huge tv deals irrespective of how the money is spent by the PL. If the salary cap was one faltering step on the way to financial stability and the longevity of football by all parties working for the common good then it’s a great day.

If it provokes more spending like ‘sailors on shore leave’ by irresponsible owners, wages rises that aren’t value for money and further remuneration for the secretary of the PFA then I am afraid it is a dark day.

It’s over to you PFA, as a Union, your chance to work to save football now.

[Tippy Tappy Football]

The main issue is that the EFL did not follow its own rules and obtain the agreement of the PFA before introducing the salary cap rules. (Read the rules. Read them and understand them!!)

They now just need to sit down with the PFA and agree the rules. However the PFA will drag their feet as their members will not want any restrictions on the amount their members can be paid.

The EFL may also be able to change the constitution of the Professional Football Negotiating and Consultative Committee but I would guess that will also require the consent of the PFA.

[bear 73]

Football has been a uneven platform since day one and will always remain a competition of clubs, and while rules are applied within football, to make law what a member of staff can earn is unlawful, and should remain so.

[Martin Shaw]

Mansfield Town boss Nigel Clough back's decision to take another look at EFL salary cap plans
chad.co.uk, Friday 12th February 2021

Stags boss Nigel Clough believes it is the right move to ditch the EFL salary cap.

The salary cap was brought in by the league as part of attempts to cut costs and the impact of financial losses caused by COVID-19.

It would have given Stags and their League Two rivals a maximum cap of £1.25m.

But a claim by the Professional Footballers' Association that the caps were "unlawful and unenforceable" was upheld by the panel.

Clough backed the verdict and says the salary cap plans were rushed in and were a ‘knee-jerk’ reaction.

“I think it is a very sensible decision,” said Clough. “I have nothing against salary caps in principle but it has to be right and thought through.

read more at https://www.chad.co.uk/sport/football/m ... ns-3133106