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Salary Cap

AB Ciren

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If this has been posted before,I apologise but reading the Football league paper this morning there was an article about Scunthorpe and Stockport, when Scunthorpe were relegated ther budget was around the £1 mil mark with a squad of 22 which worked out as a average salary of £874 a week. Then there is Stockport signed Padden Madden on £3500 per week. So my thoughts are this salary cap works in other sports and does it stop the young players coming through because we, not necessarily City are paying old pros money for their retirement. Probably get slag for this but he ho
 

John William

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If this has been posted before, I apologise but reading the Football league paper this morning there was an article about Scunthorpe and Stockport, when Scunthorpe were relegated their budget was around the £1 mil mark with a squad of 22 which worked out as a average salary of £874 a week. Then there is Stockport signed Padden Madden on £3500 per week. So my thoughts are this salary cap works in other sports and does it stop the young players coming through because we, not necessarily City are paying old pros money for their retirement. Probably get slag for this but he ho
Nice idea. However there is no "salary cap" as their is in Rugby and I cannot see the larger / wealthier clubs or those wil rich owners ever agreeing to one.

Unless it has been changed recently, the rule in L2 is that you can spend 50% of qualifying turnover on players wages (official budget line P1, which includes loan fees and agents fees). It's 60% in L1. Qualifying turnover includes transfer fees received or receivable in the season in question and donations (but not loans) from owners.

So if Stockport's owners put in say £2m cash in the season (as Dale Vince has been doing at FGR) then half that, £1M, can be added to the budget used to pay players. Simple arithmetic says this would for example cover 5 players on £200K a year / 3,850 pw, or 10 on £100K / 1,925K pw, in addition to the amount that is available from gates, commercial income and distributions form the League and TV money.

Cruel, but there it is.
 

AB Ciren

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Nice idea. However there is no "salary cap" as their is in Rugby and I cannot see the larger / wealthier clubs or those wil rich owners ever agreeing to one.

Unless it has been changed recently, the rule in L2 is that you can spend 50% of qualifying turnover on players wages (official budget line P1, which includes loan fees and agents fees). It's 60% in L1. Qualifying turnover includes transfer fees received or receivable in the season in question and donations (but not loans) from owners.

So if Stockport's owners put in say £2m cash in the season (as Dale Vince has been doing at FGR) then half that, £1M, can be added to the budget used to pay players. Simple arithmetic says this would for example cover 5 players on £200K a year / 3,850 pw, or 10 on £100K / 1,925K pw, in addition to the amount that is available from gates, commercial income and distributions form the League and TV money.

Cruel, but there it is.
Thanks for that information however the rich owners in other sports treat this as a business and all play by the rules. If they are governed then they have to comply or pay the penalty which should be enforced by the governing body which is to weak/scared to make it work
 

sign of the chimes

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I struggle with the notion of a 'hard' salary cap and favour the SCMP (salary cost management protocol) used in Leagues 1 and 2 - otherwise you run the risk of clubs generating revenue but not being able to spend it on what, in most cases, is responsible for bringing the revenue in the first place. I think it is also a bit of a restraint of trade on players - which is why the EFL dropped the plans to bring one in to Ls 1 and 2 a few years back.

My concern with the SCMP is that it gets circumvented by some clubs - and I'd like to be more confident that the EFL (collectively, as it's made up of members) were funding the resource to ensure compliance, and penalise clubs who failed to do so.

What I would be in favour of is fairer distribution of monies overall. I wouldn't have an issue with a % of overall gate receipts from match receipts going to away clubs - as I think used to be the case; and I think that something similar should happen wrt streaming revenue as well.
 

Spanks

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A salary cap, like so many things in life, looks a morally sound idea. It's only when you look up its skirt you realise things might not quite be what you were expecting.
 

manc grecian

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Confession time Spanks?
 

Hants_red

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Some interesting comments from Andy Holt, and do have a look at the tweet from Swiss Ramble

 

tonykellowfan

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On the radio a few weeks ago I heard quite an in depth and intelligent interview with one of the high up suits in the EFL, sadly I didn't catch who it was.

He said that in the EFL, the combined losses for all clubs in the 3 divisions is £400m every year (the balance of spending over "real" income). That is how much the owners are putting in each year.
 

sign of the chimes

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Some interesting comments from Andy Holt, and do have a look at the tweet from Swiss Ramble

Good read, thanks for sharing. I think Andy Holt makes some good points about owner's largesse. I don't back a hard salary cap for reasons above, but could see that there might be a case to further limit what owners are a blend to put in; above what a club generates itself.
 

AB Ciren

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Good read, thanks for sharing. I think Andy Holt makes some good points about owner's largesse. I don't back a hard salary cap for reasons above, but could see that there might be a case to further limit what owners are a blend to put in; above what a club generates itself.
Maybe a way forward would be a percentage share of the gate, which I believe used to happen and still does in the cup. This would help the smaller clubs like us when we visit the bigger ground, Derby Sheffield etc.
 
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