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Boost for Ipswich Town as EFL announce League One and Two salary caps have been scrapped

The EFL has confirmed the scrapping of salary caps in League One and Two.

After its introduction in August 2020, the Professional Footballers' Association (PFA) challenged the legitimacy of the caps.

And their case has been successful – news which will come as a big boost to Ipswich Town, who faced being further restricted in 2021/22, providing they remained in League One.

The news is a boost for Ipswich Town
The news is a boost for Ipswich Town

A statement from the EFL read: “An independent arbitration panel has upheld a claim from the Professional Footballers’ Association (PFA) that the EFL was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing ‘Squad Salary Caps’.

“In August 2020 following an extensive and comprehensive consultation process with EFL clubs,Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).

“The PFA argued that the PFNCC’s remit to consider matters relating to the employment of, and any associated rules and regulations to professional players employed by EFL clubs, was not properly considered as part of the process to introduce the new rules and as a result served a notice of claim to that effect.

“The EFL and PFA then agreed to refer that matter to arbitration and after hearing submissions from both parties, an independent panel concluded that the EFL was in breach of its agreement as a member of the PFNCC.

“At the time of the adoption of the Salary Cap Rules, the EFL included a provision to ensure that any decision such as this would have the effect of reinstating the SCMP rules that were in operation during season 2019/20, which links player related expenditure to turnover.

“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.”

Meanwhile, the PFA's 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 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.”

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