EFL: League One and League Two salary cap plans withdrawn after panel decision
- Published
The PFA said the caps were "unlawful and unenforceable"
The English Football League's plans for salary caps in Leagues One and Two have been withdrawn following a decision by an independent arbitration panel.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.