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Just now, cidercity1987 said:

Sorry but that is mad. So Sunderland are reduced to paying a 25 man squad less than £2,000 per week, same as Accrington? I'm all for power to the little clubs but it should surely be based on a percentage of turnover.

Have a smaller squad

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Just now, Loco Rojo said:

Great idea in principle and I hope it works and starts to change the crazy wage structures in football. 

If all the Divisions do this it will hopefully start to make clubs more sustainable as businesses.

Plus we will get the incompetent muppets out that has always been able to pay the price

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It is important to note that this was in discussion long before the Coronavirus pandemic hit

The rules are to be implemented straight away, but players already on higher contracts and teams being relegated down a league will have an exemption period

The amounts will be the budget for a calendar year covering all wages, taxes, agents, bonus payments and image rights

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10 minutes ago, cidercity1987 said:

Sorry but that is mad. So Sunderland are reduced to paying a 25 man squad less than £2,000 per week, same as Accrington? I'm all for power to the little clubs but it should surely be based on a percentage of turnover.

True, but the smaller / poorer clubs will still be paying less and probably have less than the maximum amounts

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5 minutes ago, TomF said:

£5-10m at a guess

Perhaps do it like the rugby and have a wage cap of say £7 million but then space for two marquee players on top. 

The major issue with wage caps in league one and the championship is that when clubs get promoted to the championship and Premier League their squads will be seriously insufficient for those leagues, at least allowing for a couple of marquee players helps to bridge that gap. 

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16 minutes ago, cidercity1987 said:

Sorry but that is mad. So Sunderland are reduced to paying a 25 man squad less than £2,000 per week, same as Accrington? I'm all for power to the little clubs but it should surely be based on a percentage of turnover.

No it shouldn't that just creates an unfair playing field

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Whilst I think it's a good idea, this could have a negative impact on L1/2 teams though in that, as at today, lots of teams could be over the cap limit and therefore subject to sanctions/punishment from the League (haven't read what these are). Clubs will be under increased pressure to reduce the wage bill and Championship clubs could cherry pick the talent at a much reduced price just to encourage lower clubs to reduce their wages.

This could therefore impact the finances of player sales for lower league clubs. 

Albeit something has to change so there might be short term pain for longer term gain. 

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IMO salary caps work well depending on the competition. In Australia the AFL & NRL have salary caps in it works ok. Neither of these have promotion or relegation so it evens out the competition making it stronger. How it will work here with football is another matter. Jury's out for me.

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Any new contracts will have their relegation clauses tweaked to accommodate the reduction. Means when we next get relegated our squad will be shredded. Seemingly we'd be allowed to pay everyone the "divisional average" until their contracts expired, so there'd be some scope for retention. Still, you'd expect that "divisional average" to be somewhat lower than perhaps the 50% reduction currently built in to our squad's contracts. Oh joy.

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5 minutes ago, JonDolman said:

Is this entire squad or first team squad? We have loads of young players.

 

https://www.efl.com/news/2020/august/squad-salary-caps-introduced-in-league-one-and-league-two/

It covers all "registered players" so it's the whole of the first team squad but not academy players I believe.

5 minutes ago, Galway Red said:

Have the PFA had any say in this? 

https://www.theguardian.com/football/2020/aug/06/efl-salary-cap-unlawful-and-unenforceable-says-pfa

They don't like it.

"The PFA has weighed in against the proposal, however, claiming the EFL has failed in a legal obligation to fully consult the players’ union over “any potential changes to a player’s conditions”. The union said it was sending its dossier on the effects of a salary cap to clubs, and called for a period of arbitration to take place this month."

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The figure mooted for the Championship IF voted in is £18m per season. Also seen £20m mentioned a while ago. Nonetheless £18m seems like the ballpark figure.

Talk of squad size limits too, PL have 25 but with various age related exemptions. Think U21s wouldn't count towards.

Think Derby wouldn't necessarily be averse to it from what I've read.

Need seems more pressing in bottom two divisions. Vote 16/24 required now, was previously 18/24. Clubs relegated to this level won't get a say. Would replace FFP.

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3 minutes ago, Mr Popodopolous said:

The figure mooted for the Championship IF voted in is £18m per season. Also seen £20m mentioned a while ago. Nonetheless £18m seems like the ballpark figure.

Talk of squad size limits too, PL have 25 but with various age related exemptions. Think U21s wouldn't count towards.

Think Derby wouldn't necessarily be averse to it from what I've read.

Need seems more pressing in bottom two divisions. Vote 16/24 required now, was previously 18/24. Clubs relegated to this level won't get a say. Would replace FFP.

£18m to then be reduced to £2.5m upon relegation. Brutally out of sync - for clubs being promoted L1 > Champ and those relegated the other way. 

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1 minute ago, JonDolman said:

That's a good idea. 

Maybe Kalas would be one of those players. Not sure who our other highest earner is. 

That makes it a bit more achievable.

Is this entire squad or first team squad? We have loads of young players.

This might make it tougher for league one and two teams to cover their wages if we loan them out.

The rugby academy system is slightly different but senior academy players are included in it, although with the gap in wages making that less feasible in football I wouldn't be surprised if it was just first team players. 

I'd guess at Baker being the other high earner but that's a total guess

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9 minutes ago, JonDolman said:

Well a 25 man squad on 2000 a week each would be over the 2.5 limit.

Of course that's on average. First team would be on more than most reserves. But that does seem a bit low I think.

Argggghhhhhhhhh. i am a silly sausage.. i read it as a per man salary cap! ??

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31 minutes ago, phantom said:

It is important to note that this was in discussion long before the Coronavirus pandemic hit

The rules are to be implemented straight away, but players already on higher contracts and teams being relegated down a league will have an exemption period

The amounts will be the budget for a calendar year covering all wages, taxes, agents, bonus payments and image rights

Exemption period means reset to divisional average for accounting purposes I believe, even if the wage itself is higher.

A big problem I foresee is relegated clubs from the PL.

They've got to find a way to maintain some sort of competitive balance here, maybe refuse to accept parachute payments as relevant income or have them set aside to stabilise as opposed to look to bounce straight back. 

Transitional arrangements are fine, essential even but Bournemouth and Watford but particularly Bournemouth wage bill on their likely Championship income, I dread to think!

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Just now, JonDolman said:

Ta. Isn't there something different for under 21s when it comes to being registered?

At this point we've ventured beyond my knowledge and understanding. 

 

Just now, Mr Popodopolous said:

Bonus payments. Assuming this means excluding cost of promotion ie pay £25m wage bill but wages appear as £50m at the promotion bonus pool for club also £25m?

 

The EFL statement says it excludes promotion and cup bonuses: "Payments directly linked to a Club’s progression in cup competitions or promotion are excluded from the Cap, while any income generated from players going out on loan is deducted from the Club’s Salary Cap calculation". League match bonuses such as goal or win bonuses are included though; it says "bonuses" are included so I guess that means they are.

Tbh I don't think they've published the full rules yet.

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