LEAGUE One and Two clubs have voted to introduce a salary cap with immediate effect.

The decision was made at an EFL meeting this afternoon, with third tier teams now limited to a wage budget of £2.5m.

A total of 16 League One clubs voted in favour of the proposals, with 22 of the 24 League Two clubs in support of a £1.5m cap for their division.

Oxford United were among those against the new measures, which replace the existing Salary Cost Management Protocols (SCMP).

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It comes as the financial impact of the coronavirus pandemic continues to hit EFL clubs, with discussions ongoing over additional measures to improve sustainability.

EFL CEO, David Baldwin, said: “The term ‘salary cap’ is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations.

"The financial impact of Covid-19 will be profound for EFL clubs and today’s vote will help ensure Clubs cannot extend themselves to the point that could cause financial instability.

“Over the last two weeks the discussions amongst clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the clubs have determined to adopt the new approach.

"We will now work with all clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL.”

The Professional Footballers' Association earlier said the timing of the vote meant it feared the measures were being 'rushed through'.

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The cap includes basic wages, taxes, bonuses, image rights and agents' fees, plus other fees and expenses paid to players.

Payments directly linked to a club’s progression in cup competitions or promotion are excluded, while any income generated from players going out on loan is deducted from the salary cap calculation.

Under 21 players also do not count towards the cap.

Those who exceed the limit by more than five per cent will be penalised.