Source:REUTERS/Clodagh Kilcoyne
[Saba Sports News] According to British media reports, the English Football League (EFL), which operates the Championship, League One, and League Two, will oppose a radical proposal from League One clubs to introduce a £4.7 million wage cap and a luxury tax on clubs that overspend. This month, 18 League One clubs wrote to EFL Chairman Rick Parry, advocating for a fixed team salary limit. They argue that it is necessary to control spending in a division where the median loss among its 24 clubs reached £5.2 million last season. Clubs led by Peterborough United and Reading also proposed a 100% tax on every pound overspent beyond the wage cap, to establish a fund redistributed to compliant clubs. The luxury tax is common in American sports, used by Major League Baseball (MLB) and the NBA to enforce salary caps. It is understood that Parry has acknowledged receipt of the letter and expressed willingness to discuss methods to promote greater sustainability and reduce reliance on owner funding, but will not support these specific reforms. It is reported that the matter was discussed by the EFL board last Thursday, and the board concluded that it would not support the clubs’ proposal.