League One and League Two Salary Caps Withdrawn
The salary caps put in place by the EFL on League One and League Two clubs in August 2020 has been withdrawn following a decision by an independent arbitration panel.
The cap was voted for by third and fourth division teams, which were set at £2.5 million in League One and even smaller at £1.5 million in League Two.
The Professional Footballers’ Association (PFA) challenged the cap, calling it “unlawful and unenforceable” and an independent panel has ruled that the EFL breached the Professional Football Negotiating and Consultative Committee’s (PFNCC) constitution in introducing the caps.
PFA chief executive Gordon Taylor said: “We were disappointed that the EFL decided to introduce salary cap proposals, which were voted through without the proper consideration or consultation with the PFNCC.
“As a result, in August 2020, the PFA served a notice of arbitration on the EFL stating the introduction of the new rules were in breach of obligations under the constitution of the PFNCC. We are pleased the panel upheld the PFA’s claim.”
The EFL’s statement on the matter added: “The EFL will now discuss the matter of financial controls and implications linked to this outcome at a series of meetings with its member clubs later this week.”
For League One and League Two clubs, this is fantastic news. The caps put in place by the EFL at the start of the 2020/21 season immediately put the third and fourth tier further behind the divisions above, as no such cap was placed on the Championship or the Premier League.
The decision to withdraw the cap gives clubs the opportunity to spent money a lot more freely – provided they abide to Financial Flair Play rules of course – on future transfers and contract negotiations with players and staff, when under the “financial controls” earlier this season proved to be difficult as a result of the limited budget these teams had to work with.
