An Irish Premiership salary cap is to be introduced
IFA chief executive Patrick Nelson welcomed the clubs' decision
Irish League clubs have voted to introduce a salary cap for clubs competing in the Carling Premiership.
The cap will be set at 60% of "total allowable income" generated by clubs for the 2011/12 season.
From next season, clubs will have to identify "allowable income" from which clubs will be permitted to use a percentage to pay players salaries.
The IFA said the decision had been taken in "response to the current economic climate".
Hugh Wade, the new Chairman of the IFA Premiership Management Committee, said that the clubs had made "a vital and responsible decision".
"I would like to thank all the clubs for their support and also the IFA staff and panel of experts who have contributed," said Mr Wade.
"I trust that this act of self regulation by the clubs will ensure that the Carling Premiership continues to grow in stature in the coming years."
IFA chief executive Patrick Nelson described the decision as a "brave and courageous step".
"I believe it is vital for the long term survival of our local game," said the IFA chief.
"This salary cap allows each club to budget appropriately and spend within their means, therefore allowing them a more secure financial footing.
"The Irish FA is intent on ensuring that good financial practices are present within all clubs, and this decision made by the committee means that yesterday could turn out to have been a very important day for the future of many of our clubs."
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