Salary Cap / Luxury Tax

[Eggsyblueskin]

But thats hurt us in terms of posting big losses in the current profit and loss system.

Signing a good young player for £30 million on 70k a week wages is miles better than signing a free transfer on £140k a week under the new proposed salary based system.

Naming Rights Deal is also revenue coming into the club though - it doesnt matter what its put towards it still boosts the clubs accounts ultimately same way everton could use the Cazoo shirt sponsership towards paying the catering staff if they wished - its still revenue that boosts the accounts regardless.

In truth the imbalances in the sport was baked into it at the outset , big city clubs would always have an advantage over others by virtue of more fans - more revenue. Wealthy benefactors heightened this disparity.
But now we have reached the state of play in which city states own and fund football clubs and supporters have become as adept as accountants in scrutinising their clubs finances in order to see scry any hope of success.
It’s gone too far , it has become ,frankly, absurd.
Most of the money goes out of the game to enrich gormless young men and their manipulating agents.
Match going fans are disregarded or treated as unpaid extras for the benefit of greedy media interests.
With each season I personally feel more and more
disassociated from the sport in general.
We need a root and branch reform of the sport far in excess of these proposals which, sadly ,will never happen.
Sorry for the rant

 

[Timbucktoo]

Good idea to base a salary cap on annual club revenue. It gives the club an incentive to maximize their income so that they can have the option of offering higher wages. Downside would be the clubs that are already pulling in huge revenue are going to be in a much better position to continue to stay at the top.
It'll be a bit of a blow for us trying to compete with the top clubs, but we're in that position because we've never been great on the commercial side of things. We've been part of the Premier League since the money began to pour into football and we made one commercial decision after another while other clubs were getting on the gravy train.

 

[Terrarian]

In truth the imbalances in the sport was baked into it at the outset , big city clubs would always have an advantage over others by virtue of more fans - more revenue. Wealthy benefactors heightened this disparity.
But now we have reached the state of play in which city states own and fund football clubs and supporters have become as adept as accountants in scrutinising their clubs finances in order to see scry any hope of success.
It’s gone too far , it has become ,frankly, absurd.
Most of the money goes out of the game to enrich gormless young men and their manipulating agents.
Match going fans are disregarded or treated as unpaid extras for the benefit of greedy media interests.
With each season I personally feel more and more
disassociated from the sport in general.
We need a root and branch reform of the sport far in excess of these proposals which, sadly ,will never happen.
Sorry for the rant

I reckon a lot will see it like this mate to be honest. It has gone so far from being a working mans game, it's unrecognisable.

 

[Lord Buckethead]

But where will all the money generated from Football go?
You can guarantee that ticket prices won't suddenly drop by 60%

 

[Blue Roo]

It will still be unbalanced, the Top six clubs have multiples of our income so will all have bigger budgets, its why European football and BMD are so important. Under the new rules you will be allowed spend 70% of your income on wages, our current wage bill is 79% before this summer.

Interesting, so downward pressure on wages but not on transfers fees.
It needs to be both.

 

[Brennan]

There is a certain irony in supporters of a team who have never been relegated from the Premier League asking for a level playing field.

We don’t actually want one, do we ? It would massively increase the likelihood of us getting relegated every year.

 

[nsno-chris]

But thats hurt us in terms of posting big losses in the current profit and loss system.

Signing a good young player for £30 million on 70k a week wages is miles better than signing a free transfer on £140k a week under the new proposed salary based system.

Naming Rights Deal is also revenue coming into the club though - it doesnt matter what its put towards it still boosts the clubs accounts ultimately same way everton could use the Cazoo shirt sponsership towards paying the catering staff if they wished - its still revenue that boosts the accounts regardless.

How does this figure in the accounts?

 

[Bruce Wayne]

Throwing more big money around is not what we need to be doing for crying out loud sake.
We’re seeing effects right now of throwing big money in fees and wages.
And any naming rights money will go towards the stadium project.

I think in the "net spend league table" we're 3rd over the Moshiri era. Spending hasn't been our problem, it's been spending it well.

 

[Quadvod]

Within the premier league i’d partially ape the nfl and pool 50% of all commercial revenues and distribute them equally across the 20 teams.

The quid pro quo for the more commercially attractive clubs would be the implementation of a salary cap as a % of turnover.

That way the better supported sides would still be financially rewarded but that the gap between them and others wouldn’t be insurmountable. A well run side like leicester could actually break in there with sustained good performances

 

[chrismpw]

Cap salary at 30k a year for the privilege of playing a hobby, charge a fiver at the gate and have 1 match a week chosen from the 3pm kickoff to show on TV and we might just get an interesting sport back.

 

[ForeverBlue92]

How does this figure in the accounts?

Because the current system is based on profit/loss over 3 year period

The new system is basically you can have a wage book of upto 70% of annual revenue with anything greater subject to a luxury tax - fees, book value and player amortisation count for little to nothing.

 

[murphy89]

It shouldn’t be based on individual clubs revenue. As it just solidifies the status quo.

something like basing it on the average revenue in the league could be interesting. With a percentage margin as that could change based on who’s in the league. Bring it in over 5 years so teams have a chance to adjust their current wage structure.

What would be good is if it forced teams like City to balance their squad more. Rather than having 150K a week talent on the bench. You might see more academy players. Equally teams might start having a ‘star’ player. For example, Grealish at Villa. If he wants to move to city, he has to take a pay cut as they have X, Y and Z on big money.

It would also take some power out of agents hands.

 

[nsno-chris]

Because the current system is based on profit/loss over 3 year period

The new system is basically you can have a wage book of upto 70% of annual revenue with anything greater subject to a luxury tax - fees, book value and player amortisation count for little to nothing.

So this mismanagement of transfers is sound and we can now straddle the club with even more debt because we don’t fall foul of rules

 

[The binman chronicles]

Just another pull at the drawbridge - if based on revenue percentages

This really. Designed to keep the teams who didn't get on the bandwagon at the right time down.

However if they allow the owner to pump in their own cash to fund transfers it is a start.

 

[Brett Angell Delight]

An empty gesture that’s as open, if not more so, to abuse by the top clubs.

The kind of hard reset that needs to happen in football, for the game to somehow resemble its former self, is simply never going to happen.

The sooner the ESL happens the better.