A new cap on non-player football operations costs is being introduced for 2019, the Canadian Football League announced Thursday.
The cap will apply to coaches and other football operations staff including general managers, scouts and equipment and video personnel.
“Successful businesses effectively manage their costs at the same time they deliver a high quality product and pursue growth strategies,” said CFL Commissioner Randy Ambrosie.
“This new measure will contribute to the success of our league as we all work together to build a bigger, better, stronger CFL.”
The cap is set at $2,588,000 for 2019 and 2020, after which time it will be subject to review and change.
The number of staff is also being capped, with a maximum of 11 coaches and 14 other football operations staff members permitted.
Team doctors and athletic therapists are excluded from restriction to ensure the cap does not affect player health and safety.
Violations of the policy can result in a team fine, a personal fine and/or the loss of draft picks.
For the first $100,000 over the cap, the fine is the equivalent of the amount by which the limit has been exceeded. For any amount over $100,000, penalties range from a minimum of a $25,000 fine and the loss of one second-round draft pick to a maximum of a $250,000 fine and the loss of three draft picks.
In 2019, as the teams adjust to the cap, teams that voluntarily report their violations to the league will only be subject to team fines, not personal fines or the loss of draft picks.
For the purposes of the cap, expenses include wages, salaries and benefits such as health plans, car and housing allowances, and playoff bonuses which exceed the player share. Exclusions include business expenses, complimentary tickets and meals while working.
The non-player football operations cap was driven by the league’s Executive Council, which is made up of the Commissioner and nine team Presidents, with the full support of the Board of Governors.
Clubs will report quarterly to the league and file all football operations contracts with the CFL, which will audit clubs each year at the same time it conducts Salary Management System audits of player salaries and benefits.