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Page last updated at 17:23 GMT, Friday, 2 January 2009

Morecambe hit by transfer embargo

Morecambe

Morecambe vice-chairman Graham Hodgson has called for consistency across divisions after a transfer embargo was placed on the League Two club.

Rules in the Football League's bottom tier state that no more than 60% of a club's income can be spent on wages.

"It's mandatory in our division," Hodgson told BBC Radio Lancashire.

"But if it was such a fantastic idea then you would suggest it should be compulsory in at least all three Football League divisions."

The Christie Park club have seen their average attendance cut by around a quarter compared with last season.

Clearly you can't just cancel contracts or get rid of wages

Morecambe vice-chairman Graham Hodgson
"From an average last season of 2,800 to around 2,100 this season, that amounts to an awful lot of money," said Hodgson.

"When we do our budgets at Christmas it has to be reflected, and effectively reduces the amount of money we're allowed to spend on wages.

"Clearly you can't just cancel contracts or get rid of wages, so the only way the Football League can control it is to put an embargo on you."

And Hodgson feels League Two clubs are facing a bigger threat than normal.

"It's a subject we debated quite vociferously at the Football League AGM this year.

"It shouldn't be a voluntary code in League One but mandatory in League Two, so it should be consistent throughout the leagues."

The League Two salary cap, where no more than 60% of a club's turnover can be spent on wages, was introduced in 2006.

Hartlepool and Swindon were the first clubs to be hit by the regulations - and both suffered transfer embargos in August 2006.

Pools allowed a number of players to leave the club, either on loan or permanently, while their owners pledged new funding - as did Swindon's.

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see also
Ince deal given League approval
31 Aug 06 |  Swindon
Pools' transfer embargo is lifted
15 Aug 06 |  Hartlepool
Hartlepool face financial squeeze
07 Aug 06 |  Hartlepool


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