FIFA President Gianni Infantino Proposes Potential Salary Cap & Limit on Transfer Fees

FIFA president Gianni Infantino has proposed talks with leagues worldwide regarding a potential salary cap and limits of transfer fees, amid the economic fallout of the coronavirus pandemic.

The financial impact on football clubs as a result of the pandemic is unprecedented, with the spending power of many of Europe's elite significantly hindered for the short-term future at least, while hundreds further down the pyramid are fighting against bankruptcy.

Several EFL clubs are fearing bankruptcy due to the financial straits brought about by the coronavirus pandemic / Bryn Lennon/Getty Images

FIFA, meanwhile, hopes to finalise plans for a relief package at its next council meeting later this month.

The pandemic and its effects have led to calls for financial reform across an incredibly wealthy industry and Infantino has encouraged discussions on the issue.

“On the financial and governance aspects, I also heard some interesting proposals on a wide range of topics,” the FIFA president said in a lengthy video statement released on Saturday, as quoted by NBC Sports.

“From salary caps to transfer-fee caps or other taxation mechanisms, to the possible obligation for governing bodies, competition organisers and clubs to build reserves or to contribute to a reserve fund which can be of assistance in hours of need such as now.

“I personally advocate for clearer and stricter financial regulations, imposing full transparency and good governance principles, and not only limiting this to the transfer system, but to the entire football ecosystem," he added.

Gianni Infantino (R) handing Jurgen Klopp his winners medal following Liverpool's success in the 2019 Club World Cup / Eurasia Sport Images/Getty Images

Infantino also spoke about moving forward in terms of football governance: "Dear friends, we will need your full support and commitment to move to the next level of good governance in football globally.

"I think that these and other measures, projects and ideas should be discussed at all levels. I know that this is something that will spark intense debate, but debate is healthy, and we should speak about it all together - as we stand together during this difficult period."

It remains to be seen how a salary cap - which is common in American sports - would function on a broader scale. Something of an outlier in world football, the US' Major League Soccer has already implemented a salary cap to bring stability and reduce disparity between teams.