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6 + 2 Point Deductions

pfim said:
If they wanted to PREVENT clubs from financial peril, the penalties would be removed.

The problems with PSR and FFP are this:

1. The calculation is forward looking (you need to budget against many variables)
2. The punishment is backward looking (it can't possibly be applied in the offending year).

How you remove the uncertainty is to create a hard cap. Use the 70% of revenue as an example.

A club's cap would be determined by the prior year's revenue. An adjustment would be made for the promoted clubs.

Clubs would know how much they could spend on wages and fees on July 1st of each year.

The that calculation is submitted to the league and is updated for each transaction.

Any transactions that fall afoul the cap are not registered. No one can go over their cap, so there can be no punishment.

This would require oversight and strict rules on revenues, which there should be anyway.

But as I said before, none of this is about sustainable, responsible ownership. It's about codifying profitability and certainty for the largest clubs.
Click to expand...

But their reasoning for not doing something like that is a very Tory-capitalist view that it would "scare off business" and would have certain clubs crying
 


Tipp blue said:
I prefer the NBA cap system.. you can spend a certain amount its around 140M dollars this year.. but you can spend more than that if you want but you have ro pay a tax for doing so... luxury tax it's called.. so if a team spends 200M they'll be taxed on the 60M over.. I think the tax is about 50% so theyd have to pay an additional 30M to the league, the NBA then split this between the teams that are under the tax threshold.
If the PL were to bring this rule in then they could have it that anything over the limit + the tax, is taken on by the owner of the club and can't be saddled on the club as debt.
The PL could then take the tax and send it down to grassroots. It's the best solution as far as I can see, Manchester City's owners could go out and spend a billion a year but they'd be on hook for 400 million tax and grassroots get a nice lob of cash, owners would soon reel in the spending if huge amounts of tax is required every year, other owners might not go over the limit, others might do it from time to time.
Click to expand...
Great this
 
Tipp blue said:
I prefer the NBA cap system.. you can spend a certain amount its around 140M dollars this year.. but you can spend more than that if you want but you have ro pay a tax for doing so... luxury tax it's called.. so if a team spends 200M they'll be taxed on the 60M over.. I think the tax is about 50% so theyd have to pay an additional 30M to the league, the NBA then split this between the teams that are under the tax threshold.
If the PL were to bring this rule in then they could have it that anything over the limit + the tax, is taken on by the owner of the club and can't be saddled on the club as debt.
The PL could then take the tax and send it down to grassroots. It's the best solution as far as I can see, Manchester City's owners could go out and spend a billion a year but they'd be on hook for 400 million tax and grassroots get a nice lob of cash, owners would soon reel in the spending if huge amounts of tax is required every year, other owners might not go over the limit, others might do it from time to time.
Click to expand...
That's an excellent idea it would suit all parties, seems weird that it's not been put forward (maybe it has)
 
Are we expecting to be a similar amount over the second time as the first ? If so we might expect the same result, so 6 points deduction. This may be reduced by 2/3rds as we have felt pain on two years of the three already but may be increased due to an aggravating factor of being done twice.

Would be really helpful to know how far we are over. Hopefully less than 19.5m
 
formerly manx toffee said:
Are we expecting to be a similar amount over the second time as the first ? If so we might expect the same result, so 6 points deduction. This may be reduced by 2/3rds as we have felt pain on two years of the three already but may be increased due to an aggravating factor of being done twice.

Would be really helpful to know how far we are over. Hopefully less than 19.5m
Click to expand...
Oh goodness no. Essentially we’ve already been punished for 2 or the 3 year monitoring period. So, you’d expect 2 points as a scaled punishment. But it’s likely that we’ve missed hitting the target by a smaller number and the figures are heading in the right direction, so those would be mitigating factors.
One point is most likely in my opinion. (Or maybe even a non points punishment if we’re lucky.)
 

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