IFA will wage war on clubs if the cap doesn’t fit
Published 06/08/2011 | 01:03
This is the era of the wage cap and reduced budget in Irish League football and the Premiership clubs have been praised for imposing salary restrictions, which have kicked in this summer.
Glentoran’s brush with bankruptcy last season highlighted the need for clubs to live within their means.
Players have had to bite the financial bullet — wages had to be cut back drastically if clubs where to survive.
Now they can only spend 60% of their net income on buying and paying players.
And anyone caught breaking the rules will face severe penalties including points’ deduction, fines, withholding of prize money, relegation and even being reported to HM Revenue & Customs.
Hugh Wade, Premiership chairman, said: “The new salary cap is in response to the current economic climate and the clubs deserve praise for taking this brave and courageous step.
“It is designed to safeguard the future of the Irish FA’s top clubs in the medium to long term.
“The clubs have all recognised this is a vital and responsible decision and I would like to thank them for their support in this.
“The long term survival of our clubs is largely dependent on our financial security.”
Glentoran, who faced a winding-up order at the High Court last year and only survived thanks to investment from a mystery benefactor, aren’t the only club fighting to secure their financial future.