visitingholte

On 06/08/2020 at 09:24, Mr Popodopolous said:

I agree in principle with a good chunk though and yeah I agree on the Licensing thing- the carry back is an interesting idea for sure.

The only issue is that promoted sides, will the PL enforce penalties? This is genuinely a grey area.

Are Projected Accounts not a basis for charge then?

I know you quote Kieran Maguire a bunch, but I'm not sure if you also listen along to his podcast. If not, he discussed it when talking about Sheffield Wednesday's points deduction. He said that EFL points deductions wouldn't count in the PL but theoretically a promoted team could possibly face a points deduction should they get relegated back to the EFL. 

On 02/08/2020 at 12:20, Mr Popodopolous said:

Reading under John Madejski were a fairly well-run club IIRC.

However, they're no longer owned by him. Appears that their FFP issues are catching up with them...

Looks fairly blatant that their signings of Joao and Puscas in August 2019 within a month or so of being released from a soft embargo were a shit or bust roll of the dice IMO! Whatever the reasoning it was ridiculous.

The ONE thing the EFL- and I guess rival clubs- have to be alert to is that they don't offload at high prices to Beijing Renhe- in 2018/19 there was an Aluko loan there, for £3m!! I struggle to justify that one alone, that should draw a line under dealings profitable to them with Beijing Renhe I think at least in terms of FFP inflation.

John Swift was off to Sheffield United but a bid was rejected quite late it seems- on the flipside, Ejaria amongst other loanees appears not to have been renewed yet.

Moore, Swift, Meite, Joao and Puscas- you'd think some if not all of these constitute saleable assets. By which I mean genuine sales, as opposed to sales, inflated loans or worse still sale with loan back to Beijing Renhe.

 Just curious, but how would the EFL be able to regulate the sale of players to clubs abroad (even if they have the same owners)? I wouldn't think that any league would have the authority to scrutinize the amount for a player sale to another club without kicking up a storm with other clubs and their player valuations? Obviously the Aluko loan is highly questionable especially at that loan fee. I just don't know what could be thrown at them?? Am I missing something with that?

Guess this is the right thread for this. Sheff Wednesday will be deducted 12 points from next season.

@Mr Popodopolous

I'm just curious as to how you think this might affect/impact the EFL (and PL to an extent). Seems like it could possibly lead to a few of the clubs being required to be sold off?

On 21/07/2020 at 04:51, Davefevs said:

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.

 

 

Thank you! It definitely is a very good topic & there is a pretty good discussion for ffp & finances in general.

I didn't realize it would include a 25 player squad limit. Not sure I would be in favor of that either. 

I find it interesting that they settled on the £18million limit. Why not £20mil? How many current championship teams would immediately comply with that? Feels like many of them would have to significantly trim the wage bill for that. I know that Stoke aren't likely to get relegated now, but I thought I read that at least one of their players would be on a wage that is bigger than the entire League 1 wage cap. And it also seems like the huge financial gap between the PL & EFL would just begin to grow and grow (which is a bad thing). 

The examples are pretty helpful/insightful, thanks! 

Don't get me wrong, I think finances in football have become unsustainable and definitely agree with some type of cap. I just don't know how implementing that would be beneficial for everyone. There's obviously never going to be a PL wage cap, and the enticement of the PL TV revenue (~ £100mil) will always be there for championship teams and that will cause overspending from Championship clubs in an attempt to reach that prize. 

My first post on here. I have been visiting this thread for almost 6 months now, as it has been pretty insightful for me into parts of the world of championship clubs finances and financial health. 

Just curious (since we, Villa) seem to be heading back for relegation. What is the deal with the proposed £18 mil salary cap? For me, it seems like it would be extremely hard to actually put in place considering about half the teams already spend way over that amount. What are y'all's thoughts on this?