Middlesbrough and the salary cap proposals: Finance expert delivers verdict on how Championship plans will impact Boro & rivals

Salary caps were introduced in League One and Two last summer, a decision which continues to divide opinion, particularly for the bigger clubs such as Sunderland, Portsmouth and Ipswich Town.

And the prospect of including a wage cap in the second-tier is reportedly being met by an identical response, with almost half of the teams opposed to it.

In order for the proposal to be waved through, two-thirds of the teams would need to vote in favour, i.e around 16 clubs. Indeed, that is looking extremely unlikely.

‘The biggest challenge’ facing Middlesbrough and their Championship rivals

“I think the biggest challenge is to get approval," Kieran Maguire, one of football’s leading finance experts, tells The Mail. “Ultimately, it’s the clubs themselves that make that decision.

“It was clear from meetings that took place at the EFL earlier in the season that you weren’t going to get 16 votes in favour - it only just got over the line in League One."

The £18million cap – which works out at an average of £13,800-a-week in 25-man squads – would cover wages, taxes, bonuses, image rights and other related fees. Under-21s players are excluded from the cap, apart from those brought in on loan.

Under the proposal, clubs would face charges if they over-spend and suffer possible points deductions.

A number of different scenarios have been up for discussion, the obvious one being – what happens to clubs relegated from Premier League?

‘The bigger picture’ facing Premier League and EFL clubs

After all, they naturally carry a wage bill significantly larger than the one currently being proposed.

“Any club that is coming down from the Premier League isn’t going to want to vote for a salary cap,” believes Maguire.

“You’ve also got ambitious owners in the Championship who want to see their clubs go up and anything that makes it a more level playing field, they’re going to be opposed to as well.

“Whilst clubs operate in self-interest, I know Rick Parry has told clubs to look at the bigger picture.

"Clubs have said ‘well yeah, but we could be out the EFL in 12 months time and in the Premier League, that for us is the big picture.’”

Middlesbrough chairman Steve Gibson came out in support of Parry, chairman of the EFL, and his plans for Project Big Picture as clubs pledged for cash to keep them afloat following the devastating impact of Covid-19.

The plan, put together in October by Liverpool and Manchester United, purposed that £250million would be immediately shared between Championship, League One and Two clubs, plus 25% of revenue from future Premier League TV deals.

The motion was objected to by the majority of Premier League teams, insisting it was nothing more than a power grab by the ‘big six’, who would have effectively been given special power over rule changes, broadcast rights, and club takeovers.

‘Yo-yo environment’ – finance expert has his say

Middlesbrough and Gibson were said to be in favour of a wage cap last year, though their stance now is unclear.

While it relieves pressure on Boro’s finances, it could have a negative impact on the club’s ambitions to become an established Premier League club.

“It’s a really challenging one,” admits Maguire.

“If you have a wage cap, and I think the figures quoted have been somewhere in the region of £16milion to £18million, it means when you do get promoted where the average wage bill in the Premier League is far, far higher, then you’ve got a problem.

“You might have had three or four players in the squad that got you promoted who are probably Premier League standard already but they are quite happy to sit out another season because you were paying them £25,000-a-week in the Championship.

“Those players aren’t going to be happy sitting out on far less money and they’ll be pushing for transfers, so when you do go up, I think the quality of the squads from clubs coming up from the Championship will suffer as a result, which is going to create more of a yo-yo environment, which isn’t in anybody's interests."

Players’ short and long-term futures

Indeed, the salary cap could have a damaging impact on players’ development and their short/long-term futures.

Rotherham United manager Paul Warne revealed how an unnamed League One club wanted to sign one of his players on loan in January but they had just £500 left in their wage budget.

Warne was then dealt with the following dilemma: “Is it worth us loaning this player and getting that sort of return?”

There’s nothing to say Boro wouldn’t find themselves in a similar position when they’re targeting loans from the Premier League, just like they have done with Yannick Bolasie and Neeskens Kebano last month.

All in all, it could lead to a domino effect right to the very top of English football.

Maguire added: “It’s bad news for everybody. It’s bad news for the players because if they’re not wanted for whatever reason then it’s not good for their personal development as they don’t get the opportunity to show what they can do elsewhere.

“It’s bad news for those Championship and League One clubs who are trying to loan players out because even if they don’t get a loan fee, at least it’s getting some wages off the bill.

"Even if they’re bearing the majority of the wages, at least it’s passing on things such as Covid testing and physiotherapy costs if the player gets injured to another club.

“It’s indicative of just how challenging things are at present financially for all clubs in the EFL.”

There are certainly a lot of pros and cons. Ultimately, it all comes down to self-interest.

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