Irish FA introduce salary cap
Thu 17th Jun 2010 | Money & Finance
The Irish FA Premiership Management Committee announced yesterday their decision to introduce a salary cap for clubs competing in the Carling Premiership.
From next season clubs will be working with the IFA to identify allowable income from which clubs will be permitted to use a percentage to pay their players salaries.
The measure is in response to the current economic climate and is designed to safeguard the future of the IFA’s top clubs in the medium to long term. The salary cap has been set at 60% of total allowable income generated by each club for season 2011/12, with some variations which are subject to the club’s HMRC position.
Hugh Wade, the new Chairman of the IFA Premiership Management Committee, said: “The clubs have all recognised that this is a vital and responsible decision, which has been taken following several months consultation regarding the principle of the salary cap and the finer details of the implementation guidelines.
"I would like to thank all the clubs for their support and also the IFA staff and panel of experts who have contributed. I trust that this act of self regulation by the clubs will ensure that the Carling Premiership continues to grow in stature in the coming years.”
Patrick Nelson, Chief Executive of the Irish FA, said: “The implementation of this salary cap is a brave and courageous step by the Premiership Management Committee, but an important step that I believe is vital for the long term survival of our local game. This salary cap allows each club to budget appropriately and spend within their means, therefore allowing them a more secure financial footing.
"The Irish FA is intent on ensuring that good financial practices are present within all clubs, and this decision made by the Committee means that yesterday could turn out to have been a very important day for the future of many of our clubs.”
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