Scunthorpe United’s co owner and chair Michelle Harness has revealed that a self-imposed wage cap is at the heart of the club’s strategy for a sustainable future.
This move comes as the landscape of English football is set to be transformed by the new Football Governance Bill.
In a candid discussion about the club’s direction, Harness explained to BBC Radio Humberside that financial responsibility is paramount as they look to build a stable foundation in the National League.
She detailed how the club is now operating under a strict wage cap, a measure agreed upon with the league to prevent a repeat of past financial struggles under Peter Swann and David Hilton.
“We have, quite rightly, a wage cap on us at the club,” Harness stated. “It’s a joint agreement with the league because our aim is sustainability. We know what we can afford.”
This disciplined approach means the club’s playing budget is directly tied to its commercial performance. Harness was clear that any increase in spending on the squad must be earned through increased revenue from ticket sales, commercial deals, and other streams.
“To enable the budget to increase, we have to increase revenue from commercial sales and ticketing,” she explained. “If that revenue increases, then the budget can increase. It’s a balancing act between what’s happening on the field and what’s happening off the field.”
This commitment to living within their means aligns perfectly with the principles of the new Football Governance Bill, which has established an Independent Football Regulator (IFR) to oversee the top five tiers of the game. The regulator’s primary goal is to ensure clubs are run sustainably, a mission Scunthorpe’s leadership is already putting into practice.
Harness believes the new system will create a more level playing field, curbing the excessive spending of some clubs and well-run teams a better chance to compete.
“For clubs with massive budgets that are backed up by directors putting in money to increase them… a lot of that won’t happen anymore,” she predicted for the future under the regulator. “I think we’ll have more of an equal playing field.”
The club is already engaging with the new authorities, with a meeting scheduled with the shadow regulator to discuss the challenges and opportunities ahead.
Harness sees the Independent Football Regulator as a positive step, adding: “It strengthens the owners’ and directors’ tests, which is a big thing considering where we’ve come from”.
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