Jump to content

Championship clubs propose £20 million salary cap.


Recommended Posts

10 minutes ago, HirstWhoScoredIt said:

People are spouting some rubbish on here.

 

The biggest one being that £20m is too low and/or it wouldn't work unless the PL followed suit!

 

Of course it would, market forces would take care of it.

 

Players would either have to accept £20K a week in the Championship, find a club abroad that would pay them more or sit it out on their current contract.

 

It really is that simple.

 

Then ultimately what would happen, is if a PL club had a player on say £35K a week that they couldn't get rid of they'd either keep paying it or they would let him go to a Championship club and they'd have to pay £15K per week of his wages.

 

The other classic was that clubs would just get around it by giving players in things like cars and houses.  Again easily solved, the limit includes all benefits that go on your P11d.  So unless people are seriously suggesting that clubs will deliberately embrace tax evasion there isn't a problem there either.

 

This is a much better and easier to police policy than what we have currently.

 

I do agree though, you can't exempt relegated PL clubs from it.  They just have to be cleverer with their contracts or the £20m only applies to a squad that each club announces. Therefore if a PL club comes down with a £30m wage bill and they can't offload you don't punish them.  They just have to not include £10m worth of players in the squad they announce at the start of the season.  Therefore you'd just end up with a relegated club having players they couldn't play.

 

Again, market forces would take over.  They'd pay some of the wages to offload and going forwards clubs would write relegation clauses into the contracts.

 

This is how a free market works people, it adapts!

 

Telling players that they have to accept 20k or go abroad is quite literally the opposite of a free market.

 

All that will happen if you enforce that rubbish is clubs will breakaway and form their own league, more than likely under the PL umbrella and players won't come to the league. 

 

The wage bill at premier league clubs is huge, Newcastle are 14th in the wages table and they pay £94m. That is nearly 5 times what the proposed cap is and they may be relegated, to suggest that they would just not register players worth £74m a year in wages is deluded. And even if they forced sales, who would buy them? And for what price? What you're suggesting is effectively punishing teams for playing the the top league, it just reeks of jealously if I'm being honest 

Link to comment
Share on other sites

7 minutes ago, Lombado said:

The PL parachute money should be used to payoff contracts to players who are deemed too expensive to fit in with the £20 mil cap when they get relegated.

Any spare just means they make a profit that year which pays a divident to their shareholders or owner.

 

Wouldn't even come close to paying off the contracts of players. Using Newcastle as an example, they would have a shortfall of £74m. Times that by the length of the contracts (say 3 years) and they would have to forcibly pay off £222m. The parachute payments are £69m for the first season, reduce in the second year and if they were a newly promoted team, none after that. 

 

So how would that work?

Edited by Minton
Link to comment
Share on other sites

7 minutes ago, Minton said:

 

Wouldn't even come close to paying off the contracts of players. Using Newcastle as an example, they would have a shortfall of £74m. Times that by the length of the contracts (say 3 years) and they would have to forcibly pay off £222m. The parachute payments are £69m for the first season, reduce in the second year and if they were a newly promoted team, none after that. 

 

So how would that work?

You would think some of the players have a re-sale value and so would attract other PL or foreign clubs. The ones they are left with, and have to pay off, may come under the £69m..

Link to comment
Share on other sites

4 minutes ago, Lombado said:

You would think some of the players have a re-sale value and so would attract other PL or foreign clubs. The ones they are left with, and have to pay off, may come under the £69m..

 

Except clubs would know they have to get them off their books so the transfer fee would be drastically reduced. The prices in the Premier League would be even more inflated though as teams would have to buy the absolute best to try and not get relegated and more than likely go bankrupt. Resulting in far less home grown talent coming through as teams couldn't take the risk and basically ending the national team.

 

 

Link to comment
Share on other sites

2 minutes ago, Owl999 said:

Great idea, you can still attract players by offering big incentives, bonuses on promotion etc 

 

Yeah and a huge number of players with £500,000 after 1 appearance, £250,000 after their first shot on goal, etc etc. Has to be all in or nothing and £20m is way too low to be viable. 

Link to comment
Share on other sites

39 minutes ago, Minton said:

 

Telling players that they have to accept 20k or go abroad is quite literally the opposite of a free market.

 

All that will happen if you enforce that rubbish is clubs will breakaway and form their own league, more than likely under the PL umbrella and players won't come to the league. 

 

The wage bill at premier league clubs is huge, Newcastle are 14th in the wages table and they pay £94m. That is nearly 5 times what the proposed cap is and they may be relegated, to suggest that they would just not register players worth £74m a year in wages is deluded. And even if they forced sales, who would buy them? And for what price? What you're suggesting is effectively punishing teams for playing the the top league, it just reeks of jealously if I'm being honest 

I could tear that apart but I'm about to go out.  I'll see if I can be bothered tomorrow.

Link to comment
Share on other sites

11 minutes ago, HirstWhoScoredIt said:

People are spouting some rubbish on here.

 

The biggest one being that £20m is too low and/or it wouldn't work unless the PL followed suit!

 

Of course it would, market forces would take care of it.

 

Players would either have to accept £20K a week in the Championship, find a club abroad that would pay them more or sit it out on their current contract.

 

It really is that simple.

 

Then ultimately what would happen, is if a PL club had a player on say £35K a week that they couldn't get rid of they'd either keep paying it or they would let him go to a Championship club and they'd have to pay £15K per week of his wages.

 

The other classic was that clubs would just get around it by giving players in things like cars and houses.  Again easily solved, the limit includes all benefits that go on your P11d.  So unless people are seriously suggesting that clubs will deliberately embrace tax evasion there isn't a problem there either.

 

This is a much better and easier to police policy than what we have currently.

 

I do agree though, you can't exempt relegated PL clubs from it.  They just have to be cleverer with their contracts or the £20m only applies to a squad that each club announces. Therefore if a PL club comes down with a £30m wage bill and they can't offload you don't punish them.  They just have to not include £10m worth of players in the squad they announce at the start of the season.  Therefore you'd just end up with a relegated club having players they couldn't play.

 

Again, market forces would take over.  They'd pay some of the wages to offload and going forwards clubs would write relegation clauses into the contracts.

 

This is how a free market works people, it adapts!

 

I'm not sure you're describing a free market mechanism in all its glory that is merely adapting to change, when you're also putting forward a counter-balancing regulation to head off the potential problems posed by this idea of a wage cap as it is being presented.

 

The point here is that a wage-cap alone, though a good step forward in itself, is incomplete without a set of rules to manage the process of being relegated from the Premiership and the huge gulf in wages that already exists between the divisions.

 

Besides, as there is already a gulf in the wages, if the free market alone were enough, you'd already expect it to have taken care of the problem - but it can't because regulation is required to make promotion and in particularly relegation more financially smooth; the free market mechanism can't make adjustments quickly enough by itself.

Link to comment
Share on other sites

2 hours ago, Minton said:

 

Not sure what you mean by that.

 

But there are already caps on the number of players a club can send out on loan, so there isn't the kind of player hoarding that Chelsea were guilty of anymore, but there aren't many clubs with a senior squad over 25 players anyway as they aren't able to be played. 

 

To put the proposed £20m cap into context, only 7 clubs in 2018 were under that figure,  Burton (£10m), Barnsley (£11m), Milwall (£13m), Preston (£15m), Brentford (£17m), Ipswich (£19m) and The Grunters (£19m). And before people start harping on about moving to Brentford's model, their wages alone were 113% of their total turnover. Preston was 119% of turnover. That's before any other costs are paid too.

 

And to show the gulf between the Championship and League 1, the Blunts nearly doubled their wage bill after promotion and still managed to be in the bottom 6 of the wage table. 

 

Villa's wage bill for that year was £73m. 

 

And one final point. The average wage amount for that year's top 6 was £54m. Meaning that we overachieved for what we spent on wages.

 

There is still hoarding of players, the caps on loaning players out didn't suddenly mean loads of PL players were released. They still have financial interests in players even though they may have made a mistake on their initial signing. The loan cap will help but it will take some time and just because there are 25 man PL squads it's still possible that some teams will have loads more than that doing nothing which championship clubs can't afford.

 

Really good informative read the 2nd part of your post though, thanks

Link to comment
Share on other sites

35 minutes ago, Minton said:

 

Yeah and a huge number of players with £500,000 after 1 appearance, £250,000 after their first shot on goal, etc etc. Has to be all in or nothing and £20m is way too low to be viable. 

If you were contractually obliged to pay bonuses  like that where’s the incentive ? 

Link to comment
Share on other sites

13 hours ago, sherlyegg said:

Think there could be loop holes to exploit...

For instance, just get a bookmaker to 'sponsor' a player, pay him whatever...

Surprised no one has thought of it tbh:biggrin:

 

I did it for my company - we plumped for Abdi :duntmatter:

Link to comment
Share on other sites

1 hour ago, HirstWhoScoredIt said:

People are spouting some rubbish on here.

 

The biggest one being that £20m is too low and/or it wouldn't work unless the PL followed suit!

 

Of course it would, market forces would take care of it.

 

Players would either have to accept £20K a week in the Championship, find a club abroad that would pay them more or sit it out on their current contract.

 

It really is that simple.

 

Then ultimately what would happen, is if a PL club had a player on say £35K a week that they couldn't get rid of they'd either keep paying it or they would let him go to a Championship club and they'd have to pay £15K per week of his wages.

 

The other classic was that clubs would just get around it by giving players in things like cars and houses.  Again easily solved, the limit includes all benefits that go on your P11d.  So unless people are seriously suggesting that clubs will deliberately embrace tax evasion there isn't a problem there either.

 

This is a much better and easier to police policy than what we have currently.

 

I do agree though, you can't exempt relegated PL clubs from it.  They just have to be cleverer with their contracts or the £20m only applies to a squad that each club announces. Therefore if a PL club comes down with a £30m wage bill and they can't offload you don't punish them.  They just have to not include £10m worth of players in the squad they announce at the start of the season.  Therefore you'd just end up with a relegated club having players they couldn't play.

 

Again, market forces would take over.  They'd pay some of the wages to offload and going forwards clubs would write relegation clauses into the contracts.

 

This is how a free market works people, it adapts!

I think you're the one spouting rubbish. 

 

You bang on about a free market, whilst also talking about capping said free market. 

Link to comment
Share on other sites

My own view is that the situation is too far gone. 

 

In principal, the idea of a wage cap is a sound one, but it needed to be utilised a lot sooner than it has been. 

 

The PL is far too much of a cash cow for them to even consider the idea of a salary cap, certainly one which would have a semblance of parity with that of the Championship. 

 

As for this notion: 

 

"Players would either have to accept £20K a week in the Championship, find a club abroad that would pay them more or sit it out on their current contract."

 

Not going to happen. Players very rarely, if ever, just sit out their contracts. You could end up in a scenario where you have an abundance of disgruntled players. 

 

 

 

 

Link to comment
Share on other sites

1 hour ago, Owl999 said:

Great idea, you can still attract players by offering big incentives, bonuses on promotion etc 

Which is the way it will work, paying a bonus when you get promoted do from premium league income

 

So a hypothetical scenario ...we offer Fletcher a one year contract on _20k pw with a £1m bonus for promotion paid in August from p/l income

 

Up to the top players to pick a club that has a real chance of promotion, bit I can see more 1 year contracts in the future

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...