Salary cap: EFL proposes League 1 and League 2 cap

Salary cap - EFL proposes League 1 and League 2 cap
Salary cap - EFL proposes League 1 and League 2 cap

After DFB and Bayern talked about “Salary Cap”, League One and League Two clubs would have to operate under salary caps for squad, according to proposals put forward by the EFL.

Third-tier sides would have a £2.5m ceiling for salaries, while the Cap would be £1.25m for the fourth tier. The Telegraph reported that the plan would also see clubs given automatic points deductions if players are not paid on time. The EFL plans to have the salary cap implemented from the 2020-21 season.

All the EFL clubs would have to vote on the introduction of maximum 20-player squads. If approved, it would restrict to only 20 senior players at each club, including eight players from the club’s academy system – within that group.

EFL chairman Rick Parry informed MPs the game needed “a reset post-Covid”, as they expect a £200m blow to the three affiliated leagues (including the Championship) due to impact related to Coronavirus outbreak. 

It is suggested clubs would have a season’s grace in which to comply with the new measures, while clubs relegated from the Championship would also require a transition period given the disparity in player earnings and income between the second and third tiers.

Salary caps exist in English rugby union’s Premiership, in which member clubs can spend £7m per season, and rugby league’s Super League, which has a limit of £2.1m.