The Football League AGM started earlier today in Cyprus and one of the items being discussed is the financial situation being faced by many clubs from the top of the Championship to the bottom of League Two.
Evidence released by Deloitte's this morning will help those who feel it is time to adopt a salary cap at all three levels, not just League Two.
They report that in the Championship just three clubs made a profit in their latest accounting year. Eight clubs paid out more in wages than they received in revenue. And with the new TV deal expected to mean a 26% drop in that source of revenue, the accountants feel that 'urgent corrective action' is needed.
"The Football League has calculated that over 80% of player contracts will have expired before the new TV deals start, which gives clubs time to reduce their cost base," said Alan Switzer of Deloitte's.
"However, financial history does not bode well. The League will be keen to encourage its members towards consensual solutions to assist with financial responsibility and stability for the well-being of the competition and its member clubs."
FL Chairman Greg Clarke hopes clubs will take note.
"The level of debt in the game, £700m in the Football League, most of that in the Championship, and big losses being racked up by the clubs. I would hope this could lead to a return to the days when local communities could own the clubs rather than rely on offshore benefactors."
Hereford United have been keeping to the League Two wage cap. In the last published accounts, wages accounted for 52% of turnover.
Text at top (next game etc)
Next Game: Scarborough In The League At Edgar Street On Tuesday 19th November At 7.45pm