Salary caps at League One and Two levels are a bit closer after the EFL annual general meeting, reduced the number of clubs needed to vote it through. A resolution was passed that means it would only take a two-thirds majority – instead of 75 % of clubs, in order to make the necessary changes to divisional Financial Fair Play rules. How this will impact on Ipswich Town football club remains to be seen but it is unlikely to be regarded as good news!
It is believed that Leagues One and Two clubs are generally in favour of implementing the new regulations; due in the main to the financial issues created by the coronavirus pandemic but Championship clubs have largely given it a frosty reception. But it does open the door for a vote on salary caps in Leagues One and Two in the coming weeks, with the majority, said to be behind plans that have recently been conceived.
In League One, a squad budget of £2.5 million is likely to be agreed and in League Two it will be set at around £1.25 million. Both of those figures include bonuses and other clauses. Restrictions will also be set in place on squad sizes too, with clubs limited to 20 senior professionals. This would force Town to cut their wage bill extensively and it seems obvious that Town would not be in favour of these drastic cuts to playing staff. Championship clubs are also looks set to discuss a salary cap in due course, but they have not progressed as far with this notion as Leagues One and Two.
Wages account for around 80% of expenditure at Town and Ipswich’s wage bill could be two or three times higher than the proposed cap. The good news, however, if indeed there is any, is that this won’t kick in next season and so the Tractor Boys have one last chance of breaking free from the lower tiers of English football before it is too late!
A study on a player’s earning revealed that the average wage for clubs’ best-paid earners in the Championship is estimated to be around £29,000 a week, and this drops to just under £5,000 in League One! Ipswich Town boss Paul Lambert has already agreed to a 22% pay cut in order to help the Blues.
And to add further risibility to the complete farce that is the EFL, Rick Parry has been reappointed as Chairman for another three years, which means he will be holding the fort until 2023!