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#897594
EFL confirm the salary cap and squad limit rules have passed and will take effect immediately:

In League One the vote was:
16 in favour
7 against
1 abstention
(#Pompey voted against)

The decision follows extensive and comprehensive consultation with all clubs in respect of addressing sustainability and wage inflation issues across the EFL which were initiated prior to the suspension of football in March following the Covid-19 outbreak and have continued during the course of the summer.

Those discussions culminated in today’s divisional vote, with representatives of League One and League Two clubs opting to implement the new measures in place of the existing Salary Cost Management Protocols (SCMP), with fixed caps of £2.5 million and £1.5 million respectively.

Discussions continue with Championship clubs in respect to amendments to their own financial controls.

League One and Two clubs are also going to continue discussions towards the introduction of additional measures aimed at addressing club financial sustainability.

When calculating total salary spending, the 'cap' includes:

- Basic Wages
- Taxes
- Bonuses
- Image rights
- Agents’ fees
- Other fees and expenses paid directly or indirectly to all registered players

Payments directly linked to a club’s progression in cup competitions or promotion are excluded from the cap, while any income generated from players going out on loan is deducted from the club’s salary cap calculation.

Transition arrangements have been incorporated in respect of a club’s squad salary cap calculation with the key element of these aimed at addressing committed contracts and relegated clubs.

Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires.

Moving forwards, clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the club’s relegation until those contracts expire.

An 'overrun' concept is also included if a cub’s total squad salary payments exceed the cap by up to five per cent, whereby dependent on the percentage level of the overrun, a financial penalty would be payable for every £1 in excess.

Clubs exceeding the 'overrun' would be referred to an Independent Disciplinary Commission, although the EFL will monitor the cap on a real-time basis throughout the season as is the current position with SCMP measures across the two divisions.

Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission.

EFL CEO David Baldwin said: "The term 'salary cap' is an emotive one, creating the impression of a restrictive measure, but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations.

"The financial impact of Covid-19 will be profound for EFL clubs and today’s vote will help ensure clubs cannot extend themselves to the point that could cause financial instability.

"Over the last two weeks the discussions amongst clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the clubs have determined to adopt the new approach.

"We will now work with all clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL."

A Portsmouth FC spokesperson said: "We campaigned against the salary cap and are disappointed with the outcome of today's vote, but respect the views of the majority of clubs in our division."
#897595
This will be detrimental to Pompey however, if this helps to save other clubs from winding up then I am in favour.

It should make the division more exciting as teams will be generally more equal however the bigger clubs with decent attendances will probably have a slight advantage when attracting players who are prepared to play under the wage cap.

As the decision has been made we must now make the best of it and, as has been said by many other posters, it is essential that we make the most of the loan market. We must not jump at the first lower Championship player who becomes available but must negotiate long and hard to bring in 6 players who will be the difference between pushing for the play offs and actually challenging for automatic promotion.

KJ needs to start working now and needs to re-prove why he has been a well respected manager in the past. A failure in the loan market will likely result in a failure in the season. KJ, your head is on the block... Please prove us Pompey fans wrong and show that you can still be a top manager.
#897601
GreenBlue wrote:
Fri Aug 07, 2020 2:08 pm
... if this helps to save other clubs from winding up then I am in favour.
I expect that I will calm down soon, but I will have zero sympathy for any clubs that go bust after voting this through. If you can't afford it, then don't pay the wages. Moaning that "we were under the salary cap" will get you nowhere.

Mr. Grumpy.
#897604
It's short sighted that hurts all the club's eventually.

If a smaller club has a good player and sells them they can't then reinvest that money in other players and sell them etc... To grow.

Why would a good player at a mid table side do anything other than leave that club because he.will know he is at his maximum earning capacity.

Why would clubs keep injury prone players on their books?

It makes the league as a whole weaker.

You could have a team promoted from the conference requiring players to take a pay cut!
#897608
Sam_Brown wrote:
Fri Aug 07, 2020 4:57 pm
Weybridge wrote:
Fri Aug 07, 2020 4:00 pm
It may hurt Pompey, but I'm broadly in support of this decision. I just hope it gets extended to the other two divisions at some point.
Pretty much my view as well.
But surely that is the big issue with it, that it isn't equitable across the leagues within our country let alone with other countries. Teams coming down from the Championship will have a massive advantage because they don't have to comply in their first season. Therefore I would suggest that promotion will be almost impossible outside of the three teams relegated from above each season.
#897610
PakefieldBlue wrote:
Sam_Brown wrote:
Fri Aug 07, 2020 4:57 pm
Weybridge wrote:
Fri Aug 07, 2020 4:00 pm
It may hurt Pompey, but I'm broadly in support of this decision. I just hope it gets extended to the other two divisions at some point.
Pretty much my view as well.
But surely that is the big issue with it, that it isn't equitable across the leagues within our country let alone with other countries. Teams coming down from the Championship will have a massive advantage because they don't have to comply in their first season. Therefore I would suggest that promotion will be almost impossible outside of the three teams relegated from above each season.
Nothing fair about it at all. It has to be across the whole of the English professional game to be fair. Even so, why have they not got the Championship on board first. Are they not under the EFL auspices too? Reason: no-one there is ever going to vote for it. It's a prescription to split the English game into the top two and bottom two. Haves and have-nots by any other name.
Can't believe that any Pompey fan who doesn't want to spend the rest of eternity in League One, thinks this is good .
Saints fans must be laughing up their sleeves.
#897611
PakefieldBlue wrote:
Fri Aug 07, 2020 5:10 pm
Sam_Brown wrote:
Fri Aug 07, 2020 4:57 pm
Weybridge wrote:
Fri Aug 07, 2020 4:00 pm
It may hurt Pompey, but I'm broadly in support of this decision. I just hope it gets extended to the other two divisions at some point.
Pretty much my view as well.
But surely that is the big issue with it, that it isn't equitable across the leagues within our country let alone with other countries. Teams coming down from the Championship will have a massive advantage because they don't have to comply in their first season. Therefore I would suggest that promotion will be almost impossible outside of the three teams relegated from above each season.
I don’t disagree with your points. Have there been any alternative suggestions that were better than the one they’ve gone with?

Edit: As for the teams coming down comment. Isn’t that only to existing players and contracts? I know there are exceptions but i imagine wouldn’t a lot of the best players have a relegation release clause?
#897613
Dinksy wrote:
Fri Aug 07, 2020 5:28 pm
PakefieldBlue wrote:
Sam_Brown wrote:
Fri Aug 07, 2020 4:57 pm
Weybridge wrote:
Fri Aug 07, 2020 4:00 pm
It may hurt Pompey, but I'm broadly in support of this decision. I just hope it gets extended to the other two divisions at some point.
Pretty much my view as well.
But surely that is the big issue with it, that it isn't equitable across the leagues within our country let alone with other countries. Teams coming down from the Championship will have a massive advantage because they don't have to comply in their first season. Therefore I would suggest that promotion will be almost impossible outside of the three teams relegated from above each season.
Nothing fair about it at all. It has to be across the whole of the English professional game to be fair. Even so, why have they not got the Championship on board first. Are they not under the EFL auspices too? Reason: no-one there is ever going to vote for it. It's a prescription to split the English game into the top two and bottom two. Haves and have-nots by any other name.
Can't believe that any Pompey fan who doesn't want to spend the rest of eternity in League One, thinks this is good .
Saints fans must be laughing up their sleeves.
I'm with you on that . I guess like many things in life it's designed to keep the little man down.

So in theory a side relegated from Championship to L1 could get a few new players in and pay them £50g a week if they wanted ??? Whereas the rest of they league are only allowed to pay players on the YTS ?
#897615
Effectively, we're being forced to take U21 loans from the Premier League and Championship i.e. feeder clubs
This is a total humiliation for our club and its proud heritage.
I see the PFA have already announced a legal challenge to it. I hope they will take it to the High Court.
I wonder if Eisner and Stewart Donald at Sunderland can get their heads together over this and find a way around the rules or to quash them once and for all.
#897617
The EFL had just eaten itself. Granted this might produce some short term relief for struggling clubs. Longer term, L1 and L2 are being cut further adrift from the Championship to the point where they will become irrelevant. Championship will effectively become Premiership 2, and those two leagues will become a closed shop. I'm very concerned we might get trapped the wrong side of the Champs/Div1 divide that is going to open up.

It is therefore imperative we get promoted next season. The Eisners and the board have some massive decisions to make this summer.

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