EFL withdraw salary caps for Leagues One and Two

The caps were introduced last season but faced opposition

EFL League One sleeve badge (Getty Images)

The EFL salary cap for Leagues One and Two has been withdrawn following a decision by an independent arbitration panel.

The caps were voted through by third and fourth-tier clubs in August last year and were set at £2.5million per club in League One and £1.5million per club in League Two.

However, the Professional Footballers' Association immediately challenged the caps, saying they were "unlawful and unenforceable", and an independent panel has now forced the caps to be withdrawn.

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The panel ruled that the EFL was in breach of the Professional Football Negotiating and Consultative Committee's (PFNCC) constitution in introducing the caps.

The PFA said it looked forward to working with the EFL on "reasonable and proportionate cost control measures for the future".

PFA chief executive Gordon Taylor said: "We were disappointed that the EFL decided to introduce salary cap proposals, which were voted through without the proper consideration or consultation with the PFNCC.

"As a result, in August 2020, the PFA served a notice of arbitration on the EFL stating the introduction of the new rules were in breach of obligations under the constitution of the PFNCC. We are pleased the panel upheld the PFA's claim."

The EFL saw the caps as an essential part of ensuring clubs lived within their means, particularly given the pressure placed on revenues by the coronavirus pandemic.

The league's own statement confirmed that following the decision, the Salary Cost Management Protocol (SCMP) regulations that were in effect during the 2019-20 season had been reinstated.

An EFL statement added: "The EFL will now discuss the matter of financial controls and implications linked to this outcome at a series of meetings with its member clubs later this week."

PA