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Salary Cap


Paul Cheesey

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We know Mark Ashton is at the forefront of the proposed salary cap for the EFL, he must therefore be privy to the wage structures being suggested. 

Perhaps they have offered Fammy the top salary in the cap in the believe it will be coming into force in the near future. 

That also might be why walsh's contract is being delayed? 

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5 hours ago, Paul Cheesey said:

We know Mark Ashton is at the forefront of the proposed salary cap for the EFL, he must therefore be privy to the wage structures being suggested. 

Perhaps they have offered Fammy the top salary in the cap in the believe it will be coming into force in the near future. 

That also might be why walsh's contract is being delayed? 

I can’t believe any contract being offered to Walsh would break Salary Cap.

1 hour ago, JonDolman said:

So the most one player will be allowed to earn is 13846 a week.

Not heard anything on this for a while so not sure if many clubs are keen.

No, you can pay players whatever you like, but as a squad you will have a cap (initial proposal in the summer) of £18m....which is 25 x £720k.  £720k was the average Championship player salary, that’s how the figure was arrived at.

U21 wages are deducted, and you can add loan income, cup / promotion prize money back in.

So you could pay one player £18m and the other 24 players £0.

You could pay 18 over 21s, £1m each and then have 7 u21s.

Any contracts in existence at the point of introduction are unaffected, but will just be reportable at the average cap.  So Kalas on £1.25m (guess) per annum, will continue to earn £1.25m but will be reported at £720k.  When he comes up for renewal, he will have to fit into the £18m cap.

Penalties were harsh:

- up to £600k over £18m....50p per £1

- up to £900k over £18m....£1 per £1

- over £900k....£3 per £1

each fine would be distributed equally between clubs who did not breach cap.

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2 minutes ago, Davefevs said:

I can’t believe any contract being offered to Walsh would break Salary Cap.

No, you can pay players whatever you like, but as a squad you will have a cap (initial proposal in the summer) of £18m....which is 25 x £720k.  £720k was the average Championship player salary, that’s how the figure was arrived at.

U21 wages are deducted, and you can add loan income, cup / promotion prize money back in.

So you could pay one player £18m and the other 24 players £0.

You could pay 18 over 21s, £1m each and then have 7 u21s.

Any contracts in existence at the point of introduction are unaffected, but will just be reportable at the average cap.  So Kalas on £1.25m (guess) per annum, will continue to earn £1.25m but will be reported at £720k.  When he comes up for renewal, he will have to fit into the £18m cap.

Penalties were harsh:

- up to £600k over £18m....50p per £1

- up to £900k over £18m....£1 per £1

- over £900k....£3 per £1

each fine would be distributed equally between clubs who did not breach cap.

Can't help feeling that any Salary cap would mean clubs look at other "Inventive" ways to get around the problem; just like in the rugby.

Start companies, and make them directors of those companies.

Buy the players properties as part of their salary, and players rent them for peppercorn rents.

The list is endless; but given the complete inability of the EFL to keep on top of FFP. I don't hold out much hope that, they will be able to get a get a grip of it.

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15 minutes ago, Davefevs said:

I can’t believe any contract being offered to Walsh would break Salary Cap.

No, you can pay players whatever you like, but as a squad you will have a cap (initial proposal in the summer) of £18m....which is 25 x £720k.  £720k was the average Championship player salary, that’s how the figure was arrived at.

U21 wages are deducted, and you can add loan income, cup / promotion prize money back in.

So you could pay one player £18m and the other 24 players £0.

You could pay 18 over 21s, £1m each and then have 7 u21s.

Any contracts in existence at the point of introduction are unaffected, but will just be reportable at the average cap.  So Kalas on £1.25m (guess) per annum, will continue to earn £1.25m but will be reported at £720k.  When he comes up for renewal, he will have to fit into the £18m cap.

Penalties were harsh:

- up to £600k over £18m....50p per £1

- up to £900k over £18m....£1 per £1

- over £900k....£3 per £1

each fine would be distributed equally between clubs who did not breach cap.

 

Thanks Dave, really interesting. 

It’s never going to happen though is it?!

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13 minutes ago, ncnsbcfc said:

Can't help feeling that any Salary cap would mean clubs look at other "Inventive" ways to get around the problem; just like in the rugby.

Start companies, and make them directors of those companies.

Buy the players properties as part of their salary, and players rent them for peppercorn rents.

The list is endless; but given the complete inability of the EFL to keep on top of FFP. I don't hold out much hope that, they will be able to get a get a grip of it.

That’s why the recent proposal didn’t go further.  There are currently too many loopholes in it.  I’d rather they wait and implement something watertight than rush through something not fit for purpose.  The Lg1/2 salary cap, based on same principles (different amounts obviously) is linked to real-time PAYE / P11D submissions, therefore picking up benefits in kind.  It’s almost like a tax return.

The EFL really need to work out what FFP’s objective is.

- fair competition and / or

- stopping clubs going bust

3 minutes ago, Fordy62 said:

 

Thanks Dave, really interesting. 

It’s never going to happen though is it?!

⬆️⬆️⬆️

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38 minutes ago, Davefevs said:

I can’t believe any contract being offered to Walsh would break Salary Cap.

No, you can pay players whatever you like, but as a squad you will have a cap (initial proposal in the summer) of £18m....which is 25 x £720k.  £720k was the average Championship player salary, that’s how the figure was arrived at.

U21 wages are deducted, and you can add loan income, cup / promotion prize money back in.

So you could pay one player £18m and the other 24 players £0.

You could pay 18 over 21s, £1m each and then have 7 u21s.

Any contracts in existence at the point of introduction are unaffected, but will just be reportable at the average cap.  So Kalas on £1.25m (guess) per annum, will continue to earn £1.25m but will be reported at £720k.  When he comes up for renewal, he will have to fit into the £18m cap.

Penalties were harsh:

- up to £600k over £18m....50p per £1

- up to £900k over £18m....£1 per £1

- over £900k....£3 per £1

each fine would be distributed equally between clubs who did not breach cap.

It's important to highlight that although in L1&2 these proposals were agreed by a majority of owners it was opposed by the PFA who have taken it to arbitration prior to taking legal action (if necessary.) PFA aren't resistant to change, rather  what that change might be and how it is derived? That intervention has been delayed by Covid.

Whilst for the protection of the game as a competitive entity there is legal justification for 'cartel' financial controls, one first has to demonstrate why they are necessary and why controls implemented are what they are? There has to be logic behind it. Here EFL took averages from existing so if the argument is the present system is over-inflated and bust that's a stupid basis on which to justify new measures. Key to any new agreement is the consultative process, which in this case didn't happen.

There are also issues to be sorted out re movements between the leagues. Players signed before the end of the January window would retain (with exemption) that salary in the lower league post relegation. For wealthiest clubs you could have an anomaly where, if they think they may go down, they offer new contracts to players. This could allow them to retain squads far superior to the league in which they later find themselves yet at not a financial disadvantage. 

Similarly, whilst it may be possible to agree contracts for payments related to the league in which one is playing these (presently) are voluntary. Suppose a player is out of favour, on a long contract and his team is relegated. His employer sets prohibitive restriction on his transfer to the league from which the player has just left and pay him a reduced amount. I'd argue that player is justified in claiming unjust constraint.

The EFL proposals were a knee jerk, quick fix. Something of greater sophistication, as found in US sports, needs developing.

One final point; whilst I'm firmly of the opinion many in our present squad shouldn't be paid anything other than washers, one may not pay an individual 'nothing'. Sadly, there has to be remuneration.

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9 hours ago, ncnsbcfc said:

Can't help feeling that any Salary cap would mean clubs look at other "Inventive" ways to get around the problem; just like in the rugby.

Start companies, and make them directors of those companies.

Buy the players properties as part of their salary, and players rent them for peppercorn rents.

The list is endless; but given the complete inability of the EFL to keep on top of FFP. I don't hold out much hope that, they will be able to get a get a grip of it.

Any direct payment would be included under the salary cap- that might include that section.

Quote

Other fees and expenses paid directly or indirectly to all registered players

Second one is certainly harder to track- there was though talk that there would be EFL access to Payroll in real time and more interestingly, WhatsApp of players. Certainly looks like it might become the case in the Rugby now! What's good for Rugby is good for Football. Text messages and Bank Statements might also be accessible as part of the new beefed up one for Rugby.

https://www.theguardian.com/sport/2020/nov/19/premiership-rugby-whatsapp-messages-policing-salary-cap-new-season-rugby-union

https://www.insidersport.com/2020/11/23/premiership-rules-to-monitor-whatsapp-texts-to-catch-out-salary-cap-cheats/

The Rugby had a thorough investigation- Saracens the guilty club- when it was uncovered the book was thrown! 35 points deduction and a £5.8m fine in the first instalment- equivalent to a 21 point deduction as 4 (with bonus pts 5 for a win). Then when they had to or were instructed to open their books mid-season, this hit some problems and the short answer is that relegation was confirmed- and this was fixed in the table (mid-season rule change voted on IIRC) with a further 70 points added to their penalty. They did win quite a lot when it was ongoing though, but once uncovered they were battered! Possible that they have to prove compliance as well, in order to be eligible for promotion when they inevitably return as winners of the League below.

£5.8m fine is a LOT more in rugby btw than our level of football- and even at our level it wouldn't be all that small.

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Can't you just say 'wages must be under x% of turnover'? That was it doesn't impede the ability of one player to earn a certain amount and clubs can't exceed their turnover. Makes clubs sustainable/doesn't impact on the ability of bigger clubs to spend more because they bring in more. Combine this with alternations to parachute payments and I'd have thought it would work.

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11 minutes ago, Lrrr said:

Can't you just say 'wages must be under x% of turnover'? That was it doesn't impede the ability of one player to earn a certain amount and clubs can't exceed their turnover. Makes clubs sustainable/doesn't impact on the ability of bigger clubs to spend more because they bring in more. Combine this with alternations to parachute payments and I'd have thought it would work.

That’s how SCMP worked until the salary cap came in.  It is voluntary though afaik.

Under salary cap there was no limit to how much you could pay an individual player....just a squad wage limit.

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1 minute ago, Davefevs said:

That’s how SCMP worked until the salary cap came in.  It is voluntary though afaik.

Under salary cap there was no limit to how much you could pay an individual player....just a squad wage limit.

I thought it was a limit of £3000 a week on new contracts? Which I thought was the reason behind it being ruled against because it limited the earning potential of an individual 

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12 minutes ago, Lrrr said:

I thought it was a limit of £3000 a week on new contracts? Which I thought was the reason behind it being ruled against because it limited the earning potential of an individual 

Nope. Is / was a squad total based limit.

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

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Old Pr!ck De Marco at it again I see. His actions have increased over time (IMO) the chances of clubs going to the wall.

Mourinho was once labelled an enemy of football by UEFA. This guy tops it and then some.

In a way, the plunge in revenue might force clubs hand anyway. What about if clubs informally and unlinked decided wages needed to fall in any case.

Players, Agents, probably varied Execs- and certainly the PFA and people like the aforementioned Brief (I won't print what else I think of him) need a cold bath. Need a haircut- for a while anyway.

One slightly confusing element here. Is the RFU one therefore unlawful?

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12 minutes ago, Mr Popodopolous said:

Old Pr!ck De Marco at it again I see. His actions have increased over time (IMO) the chances of clubs going to the wall.

Mourinho was once labelled an enemy of football by UEFA. This guy tops it and then some.

In a way, the plunge in revenue might force clubs hand anyway. What about if clubs informally and unlinked decided wages needed to fall in any case.

Players, Agents, probably varied Execs- and certainly the PFA and people like the aforementioned Brief (I won't print what else I think of him) need a cold bath. Need a haircut- for a while anyway.

One slightly confusing element here. Is the RFU one therefore unlawful?

The issue here seems to be a procedural error in the way they consulted during the implementation, rather than a problem with the principle of a salary cap

https://www.efl.com/news/2021/february/efl-statement-pfa-arbitration/

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1 hour ago, WarksRobin said:

The issue here seems to be a procedural error in the way they consulted during the implementation, rather than a problem with the principle of a salary cap

https://www.efl.com/news/2021/february/efl-statement-pfa-arbitration/

Okay thanks, that makes more sense. That Nick De Marco though...maybe some merit in this case but beyond that I'll maintain a certain silence on him!

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1 hour ago, Harry said:

Shouldn’t laugh, but it’s yet another Mark Ashton cock-up. ??

From the BBC news report: “The panel ruled that by introducing a cap the league was in breach of the constitution of the Professional Football Negotiating and Consultative Committee, which includes representatives of the PFA, the EFL, the Premier League and the Football Association.”

Someone dropped the ball, but it looks like nobody understood the constitution they were appointed under.

To paraphrase the widely reported parish council meeting last week: Read the articles of constitution. READ THEM AND UNDERSTAND THEM. You have no authority here Mark Ashton.

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Not City related and definitely has a London slant but decent article on it.

https://www.football.london/football-league/brentford-fulham-championship-salary-cap-19807252

Also Jonathan Barnett- Bale's agent- references his opposition to the Salary Cap idea, amongst other things. A lot of self-interest, clearly.

https://www.mirror.co.uk/sport/football/news/gareth-bales-agent-jonathan-barnett-23445111

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