CHAMPIONSHIP clubs are reportedly considering a wage cap for the 2021/22 season – in light of the coronavirus pandemic.
Salaries in the second-tier have gotten increasingly out of hand in the pursuit of Premier League riches and are coming under further scrutiny amid the virus crisis.
EFL chief Rick Parry has warned of a £200m black hole facing clubsCredit: PA:Press Association
According to the Mirror, a £15-20million annual limit on squad wages is to be mulled over in the coming months.
Instituting any cap before next season is considered too difficult with clubs already having to take drastic measures to control the financial devastation brought about by the pandemic.
And any new measures would have to sit alongside, or replace, the Championship’s oft-maligned Profit and Sustainability laws.
Birmingham, Sheffield Wednesday and Reading are just a few clubs to experience issues with the financial fair play model brought in for the 2016/17 season, which has largely failed to bring down the rising costs of running a second-tier team.
Football League chairman Rick Parry has promised an “open-book policy” of dealing with club finances during the crisis and believes a “proper reset post-Covid” is necessary.
A £200m “black hole” has also been cautioned by the EFL chief with teams outside of the Premier League hit far harder by the current loss of gate revenue.
CORONAVIRUS CRISIS – STAY IN THE KNOW
Don’t miss the latest news and figures – and essential advice for you and your family.
To receive The Sun’s Coronavirus newsletter in your inbox every tea time, sign up here.
To follow us on Facebook, simply ‘Like’ our Coronavirus page.
Get Britain’s best-selling newspaper delivered to your smartphone or tablet each day – find out more.
Parry told the Department for Culture, Media and Sport earlier this month that parachute payments for relegated clubs have also upset the Championship’s balance.
He said: “Parachute payments are an evil that needs to be eradicated.
“We have six clubs in the Championship receiving parachute payments giving them an average of £40m per club. The other 18 clubs get £4.5m each, so they’re then struggling to keep up.”
Parry added: “We need to know where we’re heading in two and three years. We need hope, we need a plan and we need some clarity on the longer-term future.”
Championship teams are reported to pay an average £29,000-a-week in wages with 2018/19 accounts showing that, for every £1 made by clubs, an unsustainable £1.06 is spent on player salaries.
Reading handed players £2.26 for every £1 made with Wigan and Sheffield Wednesday calculated to have paid £1.68 in wages for every £1 earned.
⚠️ Read our coronavirus in sport live blog for the latest news & updates
Aston Villa, who were promoted via the play-offs in 2018/19, spent the most on salaries that season with a wage bill of £95m, followed by Norwich and Stoke.
Rough estimates suggest a £20m annual pay cap would leave a 25-man first-team squad earning an average of £15,000-a-week.
Despite some calls to end the Championship season early, clubs are set to return to training on May 25 before completing their remaining fixtures later this summer.
Simon Jordan outlines his plan for a fairer future for the Premier League and EFL
Source: Soccer - thesun.co.uk
