SALARY CAP

Last updated : 06 November 2002 By Editor

Europe's elite clubs have announced a restriction on the amount each side can spend on players' wages. From the start of the 2005-06 season each of the G14 clubs will be limited to spending a maximum of 70% of their turnover on player wages.

The agreement is the first time any form of players' salary cap has been agreed in European professional football since the abolition of the old maximum wage at the start of the 1960s.

The statement released said: "For each 12-month accounting period, covering an entire football season, from the season 2005-06 onwards the amount of total staff cost of each member club will be limited to 70% of its audited turnover.

"Verification of the club's compliance with the above principals shall be carried out by their statutory auditors."

The Manchester United chief executive, Peter Kenyon, also a Vice-President of G14, said: "This is about establishing the overall principle of gaining control of costs in football. Collectively we see it as the major issue and it was about setting some parameters for 2005-06.

"The reality of football across Europe is that there are too many clubs who are technically bust and that's not healthy for the long-term success of the sport."