Source · Select Committees · Culture, Media and Sport Committee
Recommendation 7
7
Paragraph: 32
We firmly believe that football must use its response to the Covid-19 crisis to ‘reset’.
Conclusion
We firmly believe that football must use its response to the Covid-19 crisis to ‘reset’. The crisis has shone a light on the culture of unfair pay in football. The decision by some Premier League clubs to furlough non-playing staff was deplorable, and we welcomed its reversal. Parachute payments must become a thing of the past, and considerable work must be done to advance work on salary caps. DCMS should engage with the Premier League and the EFL to learn lessons from abroad on policies such as salary caps, which may seem radical to those inside UK football, but seem to work well elsewhere.
Paragraph Reference:
32
Government Response
Acknowledged
HM Government
Acknowledged
Football clubs are the heart of local communities, they have unique social value and there are many with a great history. It is vital they are protected. The Government has been in regular contact with the football authorities to understand their financial position throughout the pandemic. However, the Government has been absolutely clear that it expects football to look first at how it can support itself through these difficult times, and has reinforced this with the Premier League in recent weeks. Salary caps were introduced in August for English Football Leagues One and Two after clubs voted for their immediate introduction. The new ‘Squad Salary Cap’ will be £2.5 million and £1.5 million respectively and replace the existing Salary Cost Management Protocols. Discussions between the English Football League Championship clubs are still ongoing in respect of amendments to their own financial controls. While the financial stability of clubs is for the Premier League and English Football League to consider, the Government has committed to undertaking a fan led review of football governance, which will include consideration of the Owners’ and Directors’ Test. Work is underway and we consider this a priority commitment of our manifesto.