Plans to instate a new £18 million salary cap in the Championship next season seems to be unlikely as top teams have reportedly rejected the notion- according to Mike Keegan of the Daily Mail. The proposal needs two-thirds of the Championship backing to go ahead. According to Mike Keegan, over half of the clubs in the Championship oppose the concept of a salary cap.
Brentford, Bournemouth, and Norwich All Oppose the Notion of a Salary Cap
Letter Written Advising Against Voting for the Cap
Promotion chasing clubs sent a letter to other clubs that highlights the negatives of a salary cap. One finance director even reportedly claimed to have found 30 ways to circumvent the proposed cap. The argument against the cap is that it could potentially widen the gap between the Championship and the Premier League.
However, a similar salary cap structure is in use in League One and Two and a large majority welcomed this. The reported open letter, from Brentford, Bournemouth, and Norwich, asks for more research. The clubs fear if the notion is passed, it may dissuade potential investors.
However, there has been extensive research into the salary cap proposal, especially looking at the Championship. A report found that the average wage for a Championship player is £29,000-a-week, but, the new proposal would lower this to around £13,000.
And with the largest outgoings being player wages, a salary cap would therefore make sense. EFL Chairman Rick Parry voiced concern over the lack of funding as the pandemic continues to affect profits. The COVID pandemic has been especially damaging as clubs are missing out on ticket sales. Parry is championing a full reset in order to create financial stability across the leagues.
Former Crystal Palace Chairman Simon Jordan is in favour of salary caps to ensure fairness: “The challenge for the Championship is that people come out of League One and they get sucked into it; if they don’t, they finish bottom of the league.”
EFL Chairman Rick Parry Believes a Reset is the Right Thing to Do
In the early days of the pandemic, experts were warning of a financial collapse for most clubs. Indeed, many clubs will agree the lack of ticket prices has been crippling. EFL Chairman Rick Parry is leading the line to protect clubs. As reported in the Independent Parry speaks of the unsustainability of the Championship: “The lottery that is the Championship, with total wages at 107 per cent of turnover and losses in the hundreds of millions, wasn’t sustainable at any time, and it’s definitely not sustainable now.”
Parry went on to say that the survival of all the EFL clubs is the main aim: “Our aim is to get through this crisis, not just in terms of the next few months, but the next year, the next two years, with 72 clubs intact,”.
The talks to introduce a salary cap to the Championship will likely continue in the coming months.
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