Newport County chairman Gavin Foxall welcomes salary cap
- Published
Prize money from cup runs will be exempt from salary cap calculations
Newport County chairman Gavin Foxall welcomed the introduction of a salary cap after clubs in League One and League Two voted in favour.
Clubs in Newport's division - League Two - will operate within a £1.5m per season budget, while £2.5m is the limit for League One sides.
"We think this is a positive decision for football at our level," Foxall told BBC Sport Wales.
"We have always tried to run the club in a sustainable way."
Wages, bonuses, taxes and image rights, plus agents' and other relevant fees, will be included within the cap but bonuses gained from promotion or progression in cups will be exempt.
Clubs will be fined or face further sanctions if they exceed the spending limits.
However, the Professional Footballers' Association says the cap is "unlawful and unenforceable".
Financial concerns had increased at clubs - particularly below the Premier League and Championship - because of the coronavirus pandemic.
Foxall points to the example of Bury, who lost their place in League One last season because of financial problems and the collapse of a last-ditch takeover bid.
The Shakers, founded in 1885, currently have no league to play in after their application to join the National League system in 2020-21 was rejected by the Football Association.
"It's important football had that reset given where we have been. Nobody wanted another Bury," said Foxall, who believes the salary cap reflects how lower division clubs have put the general good ahead of individual self-interest.
He added: "This is a cost-control method. So we as a club will need to live within the means of having a salary squad cap of £1.5m.
"But along with that is the fact that your numbers within that squad will be restricted.
"It encourages home-grown talent and those under the age of 21. As a club we think this is a positive move all round.
"We will be able to live within the new salary squad cap put in place today."