Will football salaries change as a consequence of the effects of the Corona virus pandemic?

[striker]

3 hours ago, Musn't Grumble said:

An interesting article in today's Independent on line (http://www.msn.com/en-gb/news/spotlight/the-complex-morality-of-football-clubs-placing-staff-on-furlough/ar-BB12eH7M?li=BBoPWjQ&ocid=mailsignout) which suggests that at least four Premier League clubs and forty-five lower league clubs could "go the wall" if they don't keep the TV money.

 

Either way, clubs will need a massive cash injection to compensate for loss of revenue.

 

The irony here is that clubs like Wednesday, who have owners who might be more capable than others of keeping the club afloat during these dark days, will need the shackles of FFP / P&S easing or removing to do so. UEFA have already done this so expecting the EFL to do the same is reasonable.

Doesnt surprise me, everyone has been chasing the next level up, most using clearly unsustainable financial models. In today's game, more about the money than trophies though.

 

I have no sympathy at all for premier league clubs, mismanaging the amount of money they get, to the point they could go bust. I recall a report not too long ago stating EPL clubs could play in empty stadiums and be no worse off due to the TV money they get? Not so hard now it seems, showing off with their TV money!

 

Maybe less so for Championship clubs, but certainly for L1 and L2 clubs where matchday revenue is essential every sympathy and need support most. 

 

The last bit raises an interesting point, what will they do with FFP/P&S this year and probably next. Suspect losses will be mounting exponentially and will have a knock on to future seasons too. 

 

[scram]

Not true about PL clubs and matchday income

 

Arsenal get around £3m per home match

[Mosborough-owl]

I don’t understand this “players get paid to much” football is a very successful business and people are willing to pay good money to watch it. It’s like anything in life that’s good, you pay more for it. Footballers gets a lot of unjustified stick IMO. A lot of it Probably comes down to jealousy. 

[scram]

Footballers get paid too much because the amount of money that goes out of a football club is generally greater than the money that comes in

 

By far and away the biggest outflow is on player wages

 

No business can sustain itself like that

[darra]

Maybe somebody could confirm this but I'm sure I heard a couple of years ago that NFL players either don't get paid or don't get all of their salaries if injured. Maybe it might be only true of some clubs? Maybe that's something football could look at especially with players like Abdi?

[McRightSide]

No.

 

I’ve seen the research by McKinsey on this and whilst there will be a contraction in big sports marketing deals (think the inflation that has happened in kit deals for example) in the short term, clubs will still pay for the best players. TV Channels will still pay to screen the best teams

 

It will however bite into wages lower down the pyramid as gate receipts are more important...so you might see a few clubs go to the wall but it will come back eventually to where it is now

[@owlstalk]

 

The players will still be laughing all the way to the bank..

[shandypants]

9 hours ago, darra said:

Maybe somebody could confirm this but I'm sure I heard a couple of years ago that NFL players either don't get paid or don't get all of their salaries if injured. Maybe it might be only true of some clubs? Maybe that's something football could look at especially with players like Abdi?

I think the general model with the NFL is that most players are on yearly contracts and not necessarily lucrative compared to some other high profile sports. Have a bad year and you’re out )cut from tge roster as our American cousins say). 
 

The good thing about the NFL is that each team has the same wage cap so if you spend a great deal of money on a superstar, you have to trim the wages elsewhere - similar to fantasy football. This ensures that no team can buy all of the best players.  

[DJMortimer]

1 hour ago, shandypants said:

I think the general model with the NFL is that most players are on yearly contracts and not necessarily lucrative compared to some other high profile sports. Have a bad year and you’re out )cut from tge roster as our American cousins say). 
 

The good thing about the NFL is that each team has the same wage cap so if you spend a great deal of money on a superstar, you have to trim the wages elsewhere - similar to fantasy football. This ensures that no team can buy all of the best players.  

 

The financial situation is more complicated and usually comes down to a balancing act between guaranteed and non-guaranteed elements of the deal. Teams have to consider the overall salary cap, which is it's own natural limit on throwing money around, but they still have to compete with everyone else for players so there is still a degree of bidding. If they cut someone who is under contract, that guaranteed part of it must be honoured for the individual and still counts against that season's team limit. So if you want one of the best performers in the league, it will cost you, and depending what your long term vision is you can spread the total across one or more years. But if he turns out to be a disappointment (and some players do coast once they've been given a lucrative deal) then the team may have a problem. In some cases, guys are let go with the team still having to include them against their salary cap for a year or two. 

 

For the 2020 season, the total salary cap is just over $198m per team, which has a maximum of 53 players at any time (plus 10 on what they call a practice squad for inexperienced players). There is also a minimum limit for each player (currently around $440,000 annually) so that the roster can't be padded out unfairly with cheap labour.

 

It's a great solution because it can reward the best talent (to a point), protect players from being treated as cheap commodities, stops teams jeopardising their financial stability and promotes competition across the league. You can argue amongst yourselves how well a system like that would fit in the greedy cesspit of the Premier League and it's acolytes.

 

Edited April 8, 2020 by DJMortimer