Clubs in League One and League Two have voted in favour of introducing a salary cap, taking effect immediately.
The budget limits have been set at £2.5m and £1.5m for both of the leagues.
Wages, bonuses, taxes and image rights, plus agents’ and other relevant fees, will be included within the cap which is said to have a £1600 weekly wage limit.
Clubs will be fined or face further sanctions such as points deductions if they exceed the new spending limits.
The Professional Footballers Association has reacted to Friday’s votes by saying it is “disappointed with the outcome”.
It said in a statement: “The English Football League (EFL) has ignored its legal obligation to consult with the PFA and the Professional Football Negotiating and Consultative Committee.
“As such, the legal advice we have received is clear that the salary cap envisaged by the EFL would be unlawful and unenforceable.
“The PFA has already served its notice of arbitration on the EFL and until such time that arbitration is determined one way or another the new regulations should have no effect.
“While we share the league’s commitment to protecting the long-term sustainability of the leagues, the salary cap proposals voted on today have been rushed through without the proper consideration or consultation.”
This is seen as a breakthrough in clubs having a level playing field in-terms of how they structure their finances. It means that clubs such as Sunderland (ex Premier League) will have the same budgets as clubs like Accrington Stanley.
It is yet to be seen if the Championship will follow suit with the new budgets cap.
