EFL chiefs forced to AXE salary cap rules in Leagues One and Two after losing legal battle with PFA

EFL chiefs have been forced to drop their salary cap rules in Leagues One and Two after losing a legal case against the PFA.

Clubs voted to approve the wages limits in August.

The measures capped League One club wages at £2.5milion per season, with sides in League Two limited to £1.5m.

But PFA chiefs launched their action after accusing EFL bosses of failing to consult properly with the union.

Now an independent arbitration panel has found in favour of the PFA, forcing the Football League to drop the caps with immediate effect.


The PFA said it “welcomed” the decision, adding: “We hope to to open constructive dialogue to agree reasonable and proportionate cost control measures for the future.

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

“We argued the new rules were in breach of obligations and are pleased the panel uheld the PFA’s claim.”

Union bosses insist they are aligned with the EFL in a wish to see sustainable clubs at all levels. 

A PFA spokesman added: “We also recognise the huge economic pressure that clubs have come under due to the Covid-19 crisis.

“The PFA believes it is now in the best interest of the leagues, the clubs, and the players to work together and agree on rules that promote financial stability.”

The EFL said they "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".

Back when the plans had been approved in August, EFL chief executive David Baldwin admitted: "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."

He stressed the aim was to "help ensure clubs cannot extend themselves to the point that could cause financial instability".

As a result of the panel's verdict, the EFL have brought back last season's Salary Cost Management Protocol (SCMP) regulations that link "player-related expenditure to turnover".

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