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As discussed before on other threads there is the distinct possibility of many clubs outside the PL having a vastly reduced income, little in the way of TV and either no or reduced gates. Simple economics come into play as other industries are finding in this COVID world. There will not only have to be a form of salary caps but vastly reduced wages and ultimately transfer fees as many of the non PL clubs may only be a few months away from financial oblivion

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Posted (edited)

If a typical squad in Leagues 1 and 2 have 25 players, that works out as an average per player of £8,333 per month in League 1 and £5,000 in League 2.

Edited by Mr Angry

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How is it a step in the right direction? How can it be fair that a club like Accrington with an average attenence of 2000 have the same wages as Sunderland with 30,000?

 

This is really going to screw up the bigger clubs.

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6 minutes ago, cambridgeshire canary said:

How is it a step in the right direction? How can it be fair that a club like Accrington with an average attenence of 2000 have the same wages as Sunderland with 30,000?

 

This is really going to screw up the bigger clubs.

Because they play in the same competition, it should be equal to all in each division at the start of the season. The size of Sunderland in that league should attract better players but all leagues in my view should be hit with a salary cap and limited squad size at the start of the season.

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2 minutes ago, Indy said:

Because they play in the same competition, it should be equal to all in each division at the start of the season. The size of Sunderland in that league should attract better players but all leagues in my view should be hit with a salary cap and limited squad size at the start of the season.

Totally agree. Football is supposed to be a sporting competition first and foremost, not about who can spend more money.

I'd argue £2.5m is really low though- the Championship are proposing £18m so you'd suddenly get £12m more salary cap to work with on promotion.

I imagine we'll see a lot of people in League One with 100% wage rises in their contracts on promotion to the Championship.

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13 minutes ago, GJL Mid-Norfolk Canary said:

If this in anyway means Ipswich are in for an prolonged stint in division 3 , then excellent.

I think it might help them actually as it creates a more level playing field.

I can see promotion bonuses being on a heavily deferred basis so they would payable in the next league up, when presumably a higher cap applies. A promotion bonus to say an Accrington player might not be worth as much in real terms than say a Sunderland player.

I wonder how a newly relegated EPL team like ourselves would fair with a salary cap in the Championship?

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17 minutes ago, Capt. Pants said:

I think it might help them actually as it creates a more level playing field.

I can see promotion bonuses being on a heavily deferred basis so they would payable in the next league up, when presumably a higher cap applies. A promotion bonus to say an Accrington player might not be worth as much in real terms than say a Sunderland player.

I wonder how a newly relegated EPL team like ourselves would fair with a salary cap in the Championship?

I imagine there will have to be some grace period with a slightly higher wage cap in year one after relegation.

The hope would also be that if Premier League clubs with a chance of relegation knew that they'd have to cut wages to say £30m on relegation then they might be a bit more sensible with their wages in the Premier League.

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Whether this is perfect or not is irrelevant. What is important is that it is the first step in clubs able to buy their way out of L1/2. 

It isn't going to happen in the Championship for a while I regret to say because of parachute payments. But if there is a will then it could still happen.

Wait for the moans to come out of the EPL.

Many top sports leagues around the world have a salary cap and it has worked so there is no reason not to give it a try, bearing in mind examples have already been set.

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52 minutes ago, cambridgeshire canary said:

How is it a step in the right direction? How can it be fair that a club like Accrington with an average attenence of 2000 have the same wages as Sunderland with 30,000?

 

This is really going to screw up the bigger clubs.

Right now. Sunderland and Accrington have the same attendance, 0. They also play in the same league. There's no point bigger clubs being able to pay their players whatever they want if there's no-one to play against, if this is what's needed to stop clubs hitting the wall then it's about damn time. Football has resisted salary caps for so long but for lots of clubs now if fans aren't allowed back there's simply no alternatives, it's salary capes/slash wages or cease to exist. Remember Bury? Imagine that, except it's a club PER WEEK disappearing.

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You do have to wonder what the hell Stewart Donald's been doing at Sunderland. By my reckoning they got relegated from the Premiership in 16/17 and from the Championship in 17/18, which still left them two years of parachute payments in League One.

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3 minutes ago, Icecream Snow said:

You do have to wonder what the hell Stewart Donald's been doing at Sunderland. By my reckoning they got relegated from the Premiership in 16/17 and from the Championship in 17/18, which still left them two years of parachute payments in League One.

I suggest you watch the Netflix series, really informative and entertaining.

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Anyone is worth only what somebody is prepared to pay for them. I'm totally against salary caps in principle and could be legally difficult to enforce. It would also attract more players outside the U.K to leagues which pay more money.

It's a lose-lose-lose.

 

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3 minutes ago, Icecream Snow said:

You do have to wonder what the hell Stewart Donald's been doing at Sunderland. By my reckoning they got relegated from the Premiership in 16/17 and from the Championship in 17/18, which still left them two years of parachute payments in League One.

Exactly what Norwich avoided doing.

Spending big in the PL on the basis that the £100m plus per year TV money will continue to come in, shows 'ambition'. But when you are relegated and find you still have £60m plus outstanding on transfer fees and a wage bill that is more than that it will be crippling - just as so many other ex PL clubs have shown

Clubs are not necessarily relegated from the PL with a tidy sum in parachute payments to given them an advantage - but huge debts they struggle to shed (Naismith)

 

As to the salary cap that will cause any number of problems and anomalies - but none that stack up to going bus. Because that, as others above have pointed out, is the stark reality. For too long clubs have been living beyond their means, trying to 'keep up with the Joneses' and paying wages far higher than they can afford..... and what many players warrant.

This current problem (virus) has just brought this to the fore - and I hope this is just the beginning of much-needed change as far as player wages go.

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1 hour ago, king canary said:

Totally agree. Football is supposed to be a sporting competition first and foremost, not about who can spend more money.

I'd argue £2.5m is really low though- the Championship are proposing £18m so you'd suddenly get £12m more salary cap to work with on promotion.

I imagine we'll see a lot of people in League One with 100% wage rises in their contracts on promotion to the Championship.

And relegation clauses too.

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2 minutes ago, Nuff Said said:

And relegation clauses too.

Yeah. If this sticks I imagine players at the top end of League One would be signing contracts that would differ hugely division to division. 

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50 minutes ago, Bill said:

Spending big in the PL on the basis that the £100m plus per year TV money will continue to come in, shows 'ambition'. But when you are relegated and find you still have £60m plus outstanding on transfer fees and a wage bill that is more than that it will be crippling - just as so many other ex PL clubs have shown

Clubs are not necessarily relegated from the PL with a tidy sum in parachute payments to given them an advantage - but huge debts they struggle to shed (Naismith)

Case in point is Pepe at Arsenal.  His transfer fee is to be paid over a several seasons from memory.  As you say, clubs fall out of the PL with similar agreements in place whereby parachute payments are just covering a commitment they made a season or two ago 

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23 minutes ago, Nuff Said said:

And relegation clauses too.

If it was an across the board ruling it would do wonders for the game.

The problem at the moment is PL clubs not wanting to, unilaterally have this necessary clause in players contracts as it can have the effect of deterring players from signing for that one club.

Have it seen that is not so much a cut in wages, but an adjustment to a previous level - based on the amount of income the club is receiving.

How on earth can a club the size of Huddersfield be expected to pay wages of £50,000 a week on Championship wages ? And if having a supposedly higher wage bill was beneficial, then how do the binners explain their hapless position.

And the argument to some nonsense on here is, would increasing all L1 wages to £50,000 a week mean more clubs promoted, or even better quality football?

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1 hour ago, komakino said:

Anyone is worth only what somebody is prepared to pay for them. I'm totally against salary caps in principle and could be legally difficult to enforce. It would also attract more players outside the U.K to leagues which pay more money.

It's a lose-lose-lose.

Sorry, but in my personal opinion, NO entertainer/sportsperson should be getting paid more in a week than most earn in 2-3 years of work.

There HAS to be a sensible limit, and clearly we've gone WELL past that at present.

Any salary caps need to be introduced globally to prevent the issue you point out about players simply moving leagues for more cash, but that will not happen, and the rich will get richer, the poorer clubs will go bankrupt, and at this rate there won't be other leagues below the Prem because nobody apart from billionaires will be able to fund it...

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14 minutes ago, Bethnal Yellow and Green said:

I really can’t see it sticking - the PFA have already said they are going to legally challenge it and I could see a player strike on the horizon. 

Fun times! 

Maybe but I do wonder what the PFA/players think is the long term solution to financial issues in the lower leagues.

Most clubs outside of the Premier League make losses and their biggest expenditure is always player wages. Bringing those down is the only way to actually have a real impact.

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2 minutes ago, Felixfan said:

They are spitting blood on TWTD.

They will be seen as the Poor men of Portman!

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15 minutes ago, Indy_Bones said:

Sorry, but in my personal opinion, NO entertainer/sportsperson should be getting paid more in a week than most earn in 2-3 years of work.

There HAS to be a sensible limit, and clearly we've gone WELL past that at present.

Any salary caps need to be introduced globally to prevent the issue you point out about players simply moving leagues for more cash, but that will not happen, and the rich will get richer, the poorer clubs will go bankrupt, and at this rate there won't be other leagues below the Prem because nobody apart from billionaires will be able to fund it...

I would like to know what the average wage is for a player in the third tier of German, French, Italian etc football is - as that is where these players would be moving to.

And going on strike when the country will most likely be in the grip of rising unemployment is not going to win much support - outside their deluded bubble.

Nurses, police and other emergency staff having to cope with death on a daily basis, moving bodies etc would have an argument - but some lower league journeyman on ten times what a nurse earns is not going to have much in the way of argument - especially if the counter arguments is..... where is the money to come from ?

Higher ticket prices ?

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4 minutes ago, sonyc said:

They will be seen as the Poor men of Portman!

errm, that's why I refer to their ground as poorman road 😉

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2 hours ago, GJL Mid-Norfolk Canary said:

If this in anyway means Ipswich are in for an prolonged stint in division 3 , then excellent.

I agree, it’s really going to mess the ‘larger’ clubs up. They are going to have to transition from overpaid experienced players to youth. In the longer term it should do a club like 1p5wich good as they can go back to what they used to be good at and that’s bringing their own through the ranks and buying cheap foreigners. 
 

With that said I read the the FFP rules state that players who are already on contracts pre FFP can be classed as earning Up to £1,800 PW so this may give them enough leeway to navigate their way through the division next season if the other clubs are shedding players and costs.

We’ll see.

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7 minutes ago, Bill said:

errm, that's why I refer to their ground as poorman road 😉

I think I've seen that reference before Bill. Now it is official though 🙂

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26 minutes ago, king canary said:

Maybe but I do wonder what the PFA/players think is the long term solution to financial issues in the lower leagues.

Most clubs outside of the Premier League make losses and their biggest expenditure is always player wages. Bringing those down is the only way to actually have a real impact.

£2.5m is just stupidly low. Portsmouth had about 60% wages to turnover but to meet the cap they’d have had to reduce their wages to players by two thirds. 

Even Peterborough, which I don’t think anyone would claim is run in an unsustainable fashion would have to half their wage budget. 

There already is a technical wage cap in the EFL with FFP - while this is not working out as well as it could be - a salary cap will be beset with the same issues of ‘creative accounting’. 

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yes, it was coined by me not long after the paupers had handed their club over to Evans under the mistaken belief that an asset stripper would be beneficial to them

simply, slow witted, terminally dim farmhands 😛

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