Hi VH. Welcome to OTIB. As you’ve been reading you’ll find we are a strange bunch! But we like opposition posters on here in the main.
The £18m salary cap is still a bit of an unknown.
The new proposals appear to centre around
The salary cap - 25 man max squad, £720k per annum salary, thus 25 x £720k = £18m.
diminishing the impact of Parachute payments
and financial penalties accordingly.
For a relegated club, you can register (that’s financially register in the ffp submission) any players earning over £720k as £720k. So if Mings is on £1.3m (£25k pw), then he only counts as £720k. So Villa’s starting point would be “compliant”.
However you then decide to sell Mings, Grealish and McGinn for £100m. Normally you would use that slug of money, plus PPs to go and raid other clubs and perhaps go the best Champ players.
Lets say Brentford fail in the playoffs. Dean Smith says we’ll have Pinnock for £15m and we’ll pay him £1m per annum, Ollie Watkins for £25m and £1.5m, and whilst we’re at it we’ll have Eze from QPR for £20m for £1.5m per annum too.
From a fees point of view, you’re £40m up....but against your salary cap you’re now over. You had an allowance of £2.16m (3 x £0.72m), but spent £4m, this overspending by £1.84m. The penalty is £3 for every £1. So that costs you £5.5m.
Any contract renegotiations for your relegated players aren’t covered by £720k cap either. So Wesley (forget his injury) who signed a £3m (£60k per week) deal last summer with a 50% relegation clause starts kicking off at only being on £30k per week now. Prem clubs have been alerted by his agent, but you want to keep him. You renegotiate a £10k increase, so he’s now on £40k (£2m). That’s £1.28m over the allowance, so you get fined £3.8m.
Suddenly this starts to get very expensive, because all the other players are knocking on your door.
Now that might be a gamble Villa are prepared to accept, but it may start to stop clubs coming down just buying up who they want.