An MP has urged the Championship to follow League One and League Two in implementing a salary cap.
Clubs in League One and League Two voted on Friday (August 7) in favour of a salary cap that will be introduced with immediate effect.
Clubs in League One will be limited to spending £2.5m a year, with League Two sides agreeing a £1.5m limit.
Championship clubs are not thought to have any plans to hold talks on a potential salary cap, yet Julian Knight says they should follow League One and League Two’s example.
Knight, the chair of the Digital, Culture, Media and Sport (DCMS) committee says football has to act after the coronavirus pandemic threatened to cause untold financial damage in football.
He told the PA: “It seems there is a breaking out of common sense amongst league clubs.
“For a long time the flawed business model of much of football has been as clear as day but it’s taken the biggest financial crisis in English football since the war for some action.
“Let’s see if more realism now permeates the Championship, where player wages incredibly outstrip club turnover.”
EFL CEO David Baldwin feels the cap should not be viewed as a restrictive measure but one designed to preserve the financial health of member clubs.
He said: “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.
“The financial impact of Covid-19 will be profound for EFL clubs and today’s vote will help ensure clubs cannot extend themselves to the point that could cause financial instability.”
However the introduction of salary caps in League One and Two has not gone down well with Players' Football Association, which issued a response after an initial warning on Thursday, reasserting that a wage cap will be 'unlawful and unenforceable'.
On Twitter, they wrote: "We are disappointed at the outcome of today’s votes. The EFL has ignored its legal obligation to consult with the PFA and the PFNCC.
"As such, the legal advice we have received is clear that the salary cap envisaged by the EFL would be unlawful and unenforceable.
"The PFA has already served its Notice of Arbitration on the EFL and until such time that arbitration is determined one way or another the new regulations should have no effect.
"While we share the league’s commitment to protecting the long-term sustainability of the Leagues, the salary cap proposals voted on today have been rushed through without the proper consideration or consultation."
