Rita_Poon
Player Valuation: £90m
End up similar to that 'image rights payments overseas' workaround that got Barcelona in trouble.
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Melchizedek
Player Valuation: £10m
Headline tonight: Everton have been referred to an IC for breaching a potential salary cap. PL seek to have points deducted before end of season.
By: Matt Hughes
Option floated is capping spending linked to transfers and salaries to five times that of the lowest-earning club.
Last season Southampton banked £103.6m in prize money and broadcast cash from the league. So the maximum a club could theoretically then spend would be £518m.
While this would be good for us and all our problems with regulation - as it just takes the risk out of our situation.
It also makes a farce out of the existing rules, how can you go from being able to loose 35 mill a season to being able to spend £518 mill........
Last season Southampton banked £103.6m in prize money and broadcast cash from the league. So the maximum a club could theoretically then spend would be £518m.
While this would be good for us and all our problems with regulation - as it just takes the risk out of our situation.
It also makes a farce out of the existing rules, how can you go from being able to loose 35 mill a season to being able to spend £518 mill........
kenada_blue
Welcome to Barcelonaton FC
I didn't see the x5 ratio. That's a bit daft IMO
My understanding is that these rules run alongside the new PSR Rules which will be based on % of revenue.
They are simply to stop teams like Chelsea spending 700million in 1 window.
kenada_blue
Welcome to Barcelonaton FC
Completely jumped to the other end of the scale hasn't it.
And doesn't really change much with the top teams either.
That's what the PL's best buds are reporting mate.
Premier League clubs agree squad spending cap 'in principle'
The proposed new rules, which are still to be agreed, would set a maximum limit based on a multiple of how much the lowest-earning club took from TV revenue and prize money, which, if in place last season, would have set the cap at £518m.
news.sky.com
So the last knowncomplete season earnings for TV is 22/23.
The lowest earners where Southampton with 128.2m.
X4 multiple is 512.8.
Man City current wage bill is around 190m a season. They'll still be able to spend over 300m a season on transfers if they want.
All the scare stories that this cap will weaken the PL as a brand is nonsense. The super rich will still be able to spend at will.
A 3x multiple would have been better but that would limit Chelsea to just 2 signings a year, bless them.
The important cap for the leading clubs is the UEFA one, which is set at 70% of revenue, but I think they have a couple more seasons to achieve that. (I don't know for sure because we're not threatening European Footy anytime soon)
You can see smaller clubs taking on more wages, agents will be saying to themselves well you have scope up to 500 mill.
As for us our wage bill is £162 mill, (though that's total as opposed to squad), so id say squad is prob below 100 mill.
While Amoritasation is about £77.6 million.
So that's us about £170 mill - £190 mill a year in squad costs if you lump in agent fees. We'd have scope for £300 mill.
Depends on the calculation though, they may look at net transfers as opposed to ammoratised fees. While its not clear exactly whats in squad costs.
Tell you who will be delighted with this, Newcastle United.
Its covering wages, amortisation, agents fee's and transfer fees.
Saint Domingo
Player Valuation: £90m
Unless the PS&R rules are ditched it won’t change anything. Newcastle Villa potentially ourselves under new owners could have squads the same value as the Sky six under the spending cap, but with PS&R in place every non Sky 6 side will be hampered by their miniscule revenues so can’t spend up to the cap anyway.
If it covers, amortisation and net transfer fees - then its accounting for transfer fees twice mate.
One thing i like about it - cautiously - is it seems to reduce the need to sell a player to comply - i.e. Richarlison before June 30th.
Its replacing PSR mate.
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