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Next Game: Scarborough In The League At Edgar Street On Tuesday 19th November At 7.45pm

Friday, June 10, 2011

FL To Expand Salary Cap

The Football League member clubs have voted in favour of extending the salary cap across all three divisions.

The following is a press release from the FL:

At their Summer Conference, Football League clubs have made significant progress towards achieving greater financial sustainability by agreeing to adopt UEFA's Financial Fair Play framework.

Clubs in all three divisions voted in favour of developing rigourous new measures aimed at delivering a 'break even' financial model at clubs.

In giving 'in principle' support to the introduction of the UEFA model, Championship clubs agreed to work towards the introduction of new regulations, to be developed and approved, by the beginning of the 2012/13 season.

In addition to supporting the objectives of Financial Fair Play from 2011/12, League 1 clubs have also agreed to introduce the Salary Cost Management Protocol (SCMP). The SCMP limits spending on player wages to a proportion of total turnover and acts as a tool to deliver Financial Fair Play.

Clubs in League 2 also support UEFA's Fair Play ethos and currently operate the SCMP successfully at a 60% threshold, which will reduce to 55% next season.

Football League Chairman Greg Clarke said: "This is a very important step forward for professional football as it will help our clubs exert greater control over their finances. Much more work needs to be done, but I am hugely encouraged and impressed by the energy and focus of our clubs on this issue.

"They have been the catalyst for change and have shown a real desire to self-regulate in this area. I congratulate them on taking this bold step."

The decision of clubs to adopt the Financial Fair Play framework followed a day of debate about The League's financial future and presentations from Clarke and Andrea Traverso, UEFA's Head of Club Licensing and Financial Fair Play.