"What most people say is, what are we really worried about? It would be spiralling wages," says Parry, who fears "more pain" for clubs struggling financially
Thursday 12 December 2019 18:33, UK
EFL chairman Rick Parry has opened the door to a potential salary cap, amid concerns over the sustainability of spending in the Championship.
As second-tier clubs post increasing wage losses and sell their stadiums in search of promotion to the Premier League, and lower-division clubs such as Bury go bust, Parry believes there is growing support for serious changes to the rules.
Following the introduction of new profit and sustainability rules, the EFL has set up a working group of clubs to look at further regulations and Parry says a salary cap could be legal, following the punishment handed to Saracens in rugby union.
"At the moment, nothing is off the table, but there's no solution that's been favoured," he said. "What there is - post-Bury - is a much greater degree of realism among the clubs, not just in terms of finances but in terms of the recent prosecutions of clubs.
"There's an attitude where, if people transgress and don't pay wages on time, they need to be punished, because those who are doing it the right way need to be supported. There's definitely a change of attitude. The financial problems aren't new (but) they're perhaps getting a bit more extreme.
"For the Championship to be overspending on wages, to be paying more than 100 per cent of income on wages, is something that has been there for years - clearly as a result of those at the top trying desperately to get into the Premier League, to the difference of the problems at the bottom. That's one of the great strengths of the EFL, in that you've got that diversity. It's not one-size-fits-all.
"We do have quite different rules in the Championship compared with salary cost-management protocols lower down. That works, but some clubs think we should have more of an alignment and one set of rules. Some have looked at the Saracens decision and asked 'does that mean salary caps are now legal? Is that something we should explore?'
"The Saracens verdict makes a cap neither more nor less likely. What it has done is to ask; does that mean the perception wouldn't be lawful in Europe? Whether we're in or not is another matter; is it lawful? The Saracens decision says it must be lawful because it is something they have enforced.
"We always felt it was something that couldn't be explored. Is it something that can be explored? I've heard clubs recently say 'maybe what we have is too complex and maybe we should concentrate on the issue we are all concerned about, which is wage costs, and focus on something similar'.
"But to say that's the majority view or that it is something that is likely to happen is way off the mark. It's part of the debate. Everyone has a view on how it doesn't work for them. I think what most people say is, what are we really worried about? It would be spiralling wages. I don't think it's something that separates big (club) from small."
Parry also warned that more lower-division clubs could go out of business and be expelled from the EFL because of "bad owners" that need to be "weeded out", as League Two Macclesfield continue struggling to pay wages.
"I definitely can't say (Bury) will be the last - there may be more fall-out to come," ex-Liverpool chief executive Parry said. "We have seen the problems with Macclesfield, which are fairly extreme, and they are not the only one.
"Maybe we are going to have to go through more pain before it gets better. I don't think we have got too many clubs, there are many full-time clubs thriving below the EFL.
"There are a few bad owners and maybe there are still a few to weed out but it will be what it will be."
