EFL Statement on salary caps

An independent arbitration panel has upheld a claim from the Professional Footballers’ Association (PFA) that the EFL was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing ‘Squad Salary Caps’.

In August 2020 following an extensive and comprehensive consultation process with EFL Clubs,  Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).

The PFA argued that the PFNCC’s remit to consider matters relating to the employment of, and any associated rules and regulations to professional players employed by EFL Clubs, was not properly considered as part of the process to introduce the new rules and as a result served a notice of claim to that effect.

The EFL and PFA then agreed to refer that matter to arbitration and after hearing submissions from both parties, an independent panel concluded that the EFL was in breach of its agreement as a member of the PFNCC.

At the time of the adoption of the Salary Cap Rules, the EFL included a provision to ensure that any decision such as this would have the effect of reinstating the SCMP rules that were in operation during season 2019/20, which links player-related expenditure to turnover.

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.

I said this when it was introduced.

Many predicted this. More worryingly, alleged educated folk running clubs voted for it when the common man could see it was get overturned...or at least be seen as an infringement of the rules...

Quoted from WayneBurnettsJockstrap

An independent arbitration panel has upheld a claim from the Professional Footballers’ Association (PFA) that the EFL was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing ‘Squad Salary Caps’.

In August 2020 following an extensive and comprehensive consultation process with EFL Clubs,  Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).

The PFA argued that the PFNCC’s remit to consider matters relating to the employment of, and any associated rules and regulations to professional players employed by EFL Clubs, was not properly considered as part of the process to introduce the new rules and as a result served a notice of claim to that effect.

The EFL and PFA then agreed to refer that matter to arbitration and after hearing submissions from both parties, an independent panel concluded that the EFL was in breach of its agreement as a member of the PFNCC.

At the time of the adoption of the Salary Cap Rules, the EFL included a provision to ensure that any decision such as this would have the effect of reinstating the SCMP rules that were in operation during season 2019/20, which links player-related expenditure to turnover.

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.

Common sense prevails. If we do get relegated.. imagine not being able to use our far greater level of income to ensure playing budget advantage over Boreham Wood or Kings Lynn Town..

There are still people who believe transfer windows are wrong. There aren't many other industries where you are limited to buy and sell within certain time limits.

It's a bit mad. It whips the media up into a frenzy and forces clubs into cul-de-sacs, increasing the likelihood of them making irrational decisions and throwing silly money at clubs/players because of deadlines.

But going back to salary caps — if clubs have the cash (and the EFL do their 'due diligence' of owners) then they should be free to spend their money however they like.

Quoted from RichMariner

There are still people who believe transfer windows are wrong. There aren't many other industries where you are limited to buy and sell within certain time limits.

It's a bit mad. It whips the media up into a frenzy and forces clubs into cul-de-sacs, increasing the likelihood of them making irrational decisions and throwing silly money at clubs/players because of deadlines.

But going back to salary caps — if clubs have the cash (and the EFL do their 'due diligence' of owners) then they should be free to spend their money however they like.

Due diligence doesn't mean an owner won't put the club at risk. There's absolutely no way that due diligence is enough. Either clubs cannot go over the 55%, whatever the situation. Or take some sort of bond from the funder to ensure that playing costs get covered for the next 12 months if he walks away.

as Bigdog alluded to; that surely means any thoughts the Conference might have on introducing a salary cap are dead in the water

Hopefully the new controllers of the club will take anything that comes from the FL with a huge chunk of salt. We’ve had at least three duff examples at our club, two in the last year:

The B-Team Trophy when the League bounced the clubs into it at a meeting a matter of weeks before the competition was due to start;
The ‘advice’ that we didn’t need to offer Charles Vernam a new contract;
The salary cap.

Makes you wonder how many of those players that Ollie 'let go', were because of the salary cap?

Imagine where we could have been if we had kept all the players we had.

[img]https://media.makeameme.org/created/mama-always-said-tfzaak.jpg[/img]

Quoted from WayneBurnettsJockstrap

Makes you wonder how many of those players that Ollie 'let go', were because of the salary cap?

Imagine where we could have been if we had kept all the players we had.

[img]https://media.makeameme.org/created/mama-always-said-tfzaak.jpg[/img]

Would have made no difference as pre-existing contracts only counted at the league average. And all contracts would have been agreed before the (now defunct) cap came into force anyway.

We didn't re-sign any of them as a way of avoiding paying wages in July & August.

The salary cap was a stupid idea from the start. Just stick to percentage of income and cut out all the loopholes clubs use to get around it.

The system needed to be policed better, instead of the sledgehammer to crack a walnut approach of the salary cap.

Quoted from GollyGTFC

Would have made no difference as pre-existing contracts only counted at the league average. And all contracts would have been agreed before the (now defunct) cap came into force anyway.

We didn't re-sign any of them as a way of avoiding paying wages in July & August.

i can imagine whose hand was first up when it was put to the floor and asked to be seconded  

Squeaky & Co couldnt vote fast enough or move fast enough to embrace the salary cap restrictions whilst plenty of other clubs moved fast to side step it and get business done early.