League ponders salary cap

Wage capping could be introduced at Football League clubs to avoid a repeat of the financial crisis currently enveloping the game. It is understood a committee has already been set up by the League to investigate the possibility of putting a ceiling on the salaries players earn.

Gordon Taylor, chief executive of the Professional Footballers' Association, appears to have softened his stance on the matter. "We want to avoid the situation that we have now with even clubs the size of Bradford and Leicester having massive financial problems," he said.

"We want the League to properly monitor clubs' expenditure to make sure the problems don't happen again."

The League is also reviewing divisional contracts. When a team are promoted a player's wage will go up by a certain percentage. Should his team be relegated his wage will go down by a certain percentage. Taylor, however, believes that a player and his agent may feel he is entitled to a move if his salary is cut.

The League accepts there is a need for good housekeeping, especially as it is tries to raise an estimated £30m to ease the financial burden on teams outside the Premiership following the collapse of the ITV Digital deal. Talks are ongoing with the Football Association, the Premier League and the PFA regarding the financial situation of its members. Should the League be given the money it needs, this will be spread over a period of time with 60 to 80 per cent of it going to First Division clubs, either as a gift, a grant or a loan. Whether clubs seen as financially solvent will benefit remains unclear.

John Nagle, of the Football League, said: "We have approached the FA, the Premier League and the PFA to discuss a number of matters relating to the the financial situation facing our clubs.

"We have had positive discussions with all three bodies about alleviating these problems, both in the long and short term. Nothing has yet been agreed. However, a great deal of progress has been made."