Lincoln City: £2m of losses reflect scrap of salary cap plans, says chief Liam Scully
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Liam Scully also works as chairman of the EFL Trust - the charitable arm of the league
A salary cap in League One and Two will need to be revisited if a bid for a greater share of the Premier League's wealth is realised, says Lincoln chief executive Liam Scully.
Lincoln have reported a pre-tax loss of £2m, external for the 12 months up to June 2022.
Wages were up by £1.1m on the previous season to £6.2m, with plans for a salary cap scrapped a year earlier.
"It's reflective of the abolishment of the salary cap which we had in place the year before," Scully said.
"It's reflective of our industry and the market place at this moment.
"We certainly don't spend opulently.
"All football fans should be concerned for the state of football at the moment, because a club our size certainly doesn't set out to make these losses.
"With EFL clubs losing over £400m collectively, external last year, it shows the challenges that you do have in our game and our industry has right now."
Wages at the League One club were up last term, just a season after a plan for a salary cap - which was to be set at £2.5m in the third tier - was withdrawn following a decision by an independent arbitration panel in February 2021.
Spending at Lincoln included being "aggressive in the winter transfer window", with £300,000 invested to ensure they remained in League One. They ended up finishing 17th in the table.
A season earlier, with a wage bill of just under £5.2m, the Imps finish fifth in the table and reached the play-off final in a bid for Championship promotion.
"We do need a redistribution of wealth in the football pyramid and believe it is fair and appropriate," Scully told BBC Radio Lincolnshire.
"But there is absolutely no point in achieving financial redistribution if the rules don't change at the same time to prevent all clubs from spending more money on players.
"The whole idea is that we have to create a sustainable football pyramid. That is what we are working towards."
Matchday income at the LNER Stadium surpassed that received from central distribution - money which trickles down to English Football League clubs from the Premier League - for the first time since 2019.
EFL chairman Rick Parry has this week spoken about ongoing talks with the Premier League and Football Association about the sport's future, which includes the distribution of funds from the top flight.
Scully said he has attended parliamentary meetings about the state of the game and said he spoke to sports minister Stuart Andrew about his concerns this week.
"All football fans should be concerned for the state of football at the moment," he said.
"It is an absolutely pivotal time for our game.
"And as custodians - not only of Lincoln City football club, but as an EFL club - we absolutely have the responsibility to try and fix the economic challenge that our game has right now."