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League set for crisis talks

Thursday, December 04, 2008, 10:00

THE Football League last night confirmed a proposed salary cap would be
discussed in greater depth with Coca-Cola Championship clubs after Derby
chairman Adam Pearson warned the game is "close to meltdown at all levels".

Pearson insists a cap on player wages must be introduced to help prevent
spiralling financial losses as the economy heads into a recession.

Football League chairman Brian Mawhinney is thought to advocate a salary
cap in all three divisions, particularly the Championship in which
Plymouth Argyle currently feature.

A League spokesman said: "Given the prevailing economic climate, this is
an issue that will be discussed with clubs once again."

League clubs are to meet on December 18 at Pride Park and, while the
prospect of a salary cap is not top of the agenda, it seems certain to
be debated.

Yet despite a general acceptance that there needs to be some form of
control over player wages, not all Championship chairmen are convinced a
salary cap is the answer.

Preston chairman Derek Shaw said: "A salary cap would be very difficult
to control because there are lots of ways round it so that players can
still increase their earning power.

"At Preston our wage bill has increased by £1 million per year for the
past four or five years. If you don't pay the wages, you will get
relegated from the Championship and it's very difficult to get back up –
just ask Leeds and Nottingham Forest."

Shaw conceded that Preston, one of the more prudent clubs in the
Championship, have been affected by the economic downturn. He added:
"Our gates are down on average by about 1,000 on last year. But if we
reduce ticket prices then we can't afford to pay the players' wages."

Bristol City chief executive Colin Sexstone has claimed a salary cap
would widen the gulf between the Championship and the Premier League.

Although Sexstone is in favour of bringing players' wages down, he
believes this can best be achieved by allowing market forces to take effect.

"We are against any kind of outside regulation," said Sexstone.
"Regulation would create a bureaucracy which would become too big to
control. We saw something similar in League One a few years ago where
there simply weren't enough policemen to enforce it.

"I think all clubs are agreed on the need for wages to come down, but
the market should dictate any such cut rather than accountants working
for the Football Association or Football League.

"I can't see the Premier League even entertaining the idea. If we had a
wage cap in the Championship, the gap would become too big to bridge.

"You would be left with a situation where the teams coming down from the
Premier League would almost certainly be promoted straight back the
following season."

Derby chairman Pearson said it was time to act, though, saying: "The
game is close to meltdown at all levels. Club boards are under pressure
to gain success and that leads them to paying ridiculous wages. It
cannot carry on or it will end in disaster. There is a growing feeling
now that some sort of wage cap has to come in."