The Financial Landscape of English Football

[DualityNSNO]

A salary cap as a percentage of a clubs revenue would be a good idea. It would mean clubs only being able to offer wages that they should be able to afford to pay after other expenses have been paid. Clubs that are making good commercial decisions get the reward to pay bigger wages.

In a perfect world this is a great idea.

In the current world this is more or less what the FFP rules mean to do, but the actual situation is that a few teams inflate their revenue with bogus sponsors so this makes the field even less even - Chelsea, City, Newcastle currently can never go bust using the same rules as their sponsors can pump in as much as it's needed to balance the books. Sky money also make this incredibly lopsided as they give more money to the sky 6, etc.

We were mostly all against it but the super league sounds great... for the teams outside the super league. Then those rules can be applied while Real play PSG for the 63883th time this year.

 

[nsno-chris]

A salary cap as a percentage of a clubs revenue would be a good idea. It would mean clubs only being able to offer wages that they should be able to afford to pay after other expenses have been paid. Clubs that are making good commercial decisions get the reward to pay bigger wages.

In this scenario the top 6 remain the top 6 because they’ll just continue to generate revenue well in excess of others

If using recent figures and say a 50% cap on revenue, then:

City would be able to spend £310m
Everton £90m.

 

[kenada_blue]

Don't allow owners to borrow against the club. If they want to invest in said club its their liability.

What changed is that rather than clubs being owned by business men, mainly local ones too, who pumped their own money into it like a trainset hobbiest...the league let in hedge funders, investors, and now actual gulf states to own football clubs.

Millionaires who have to monitor what they do don't own clubs at the top level. Groups of billionaires and states own them now so they don't have to worry about the risk of just pumping money into it and endless pit. That outcome still makes for a unlevel playing field.

It's what the PL created.

I can't remember who on the forum made the best proposition Ive read on it by saying something along the lines of every club having the same transfer budget set each year that they can't go over. How it's funded it's up to the club (it includes agent fees etc too)

Add on the wage to turnover percentage cap.

So Everton and City both have a limit on £100mill per season to spend for example...both go about that entirely different.

If you add the point just made about not ploughing debt onto the club too....to me that sounds like a waaaay better way of balancing the field.

 

[Toffe3m4n]

And the 2030 premier league first round draft pick goes to Everton FC

Everton FC choose Christiano Ronaldo Jnr

Imagine drafts in footy lol would be chaos.

 

[Dddddd]

*puts on serious cap

I don’t want this discussion into turn a PSR, elite club chat to overrun that thread. But what would people see as fair and just to regulate the competition.

With our situation, Forest and now Villa who are posting £120m losses, how can a team compete?

There is a lot of calls for salary caps, or do people just say open the books and let clubs do what they want, and spend however they see fit.

Allow owners to spend what they want but they should fund any losses over a certain level themselves by writing off the debt

 

[nsno-chris]

Allow owners to spend what they want but they should fund any losses over a certain level themselves by writing off the debt

If an owner spends £200m in one season, increase operating expenses to a level that the club cannot afford by itself. Owner says “I’ve had enough of this” how would the league enforce making the owner pay. I don’t think there’d be any legal recourse.

It is their business after all, if they chose to pull out, let it fold and sell it for scraps, unfortunately that is their choice.

 

[Timbucktoo]

Completely kills competition.

It would encourage clubs to only spend what they generate in revenue. The current system encourages club to gamble on make huge losses short term in the hope of getting more competitive in the short term. In most cases teams can get that short term boost but then they are not able to generate the increased revenue to keep spending and end up like a Reading or Bolton, have a taste of the big time and face near financial disaster.

 

[tommye]

About sums up the landscape.

 

[Timbucktoo]

In this scenario the top 6 remain the top 6 because they’ll just continue to generate revenue well in excess of others

If using recent figures and say a 50% cap on revenue, then:

City would be able to spend £310m
Everton £90m.

This will be the case whatever system that could be introduced because the 6 have had a head start on the rest in terms of making huge money. The salary cap would be something to prevent clubs going into meltdown off the field which puts clubs at serious risk of going under. It might even force clubs to go back to developing young players that come through the youth system into their 1st team rather than blowing tens of millions on players who are only interested in the pay.

 

[nsno-chris]

This will be the case whatever system that could be introduced because the 6 have had a head start on the rest in terms of making huge money. The salary cap would be something to prevent clubs going into meltdown off the field which puts clubs at serious risk of going under. It might even force clubs to go back to developing young players that come through the youth system into their 1st team rather than blowing tens of millions on players who are only interested in the pay.

But would an over all spending cap? Every team can spend £200/250/300m, regardless of turnover, on operating expenses.

Go over, there is a sanction. Owners have the choice to bridge the gap between revenue generation and spend if they chose. If club reports a loss for year 1, special measure are applied; year 2 and still reporting a loss, then sanctions are applied (squad reduction, transfer ban for signings) until losses equate, or at 70% of revenue

Allow a fair playing field for all. It gives the option for an owner to give it a real go and cover losses without worrying about a generating money from nowhere

 

[mahermi1]

Personally, for me I’d like to the introduction of a spending cap. Each club has the same amount of money to spend on players, transfers, wages, agent fees etc (say £300m)

If a clubs revenue does not equal the spend, then the owner, if they wish can pump money into the club to cover the difference. If the owner doesn’t, then they operate within their budget/revenue generation.

Profits on revenue vs income can go back into the club (u23, woman’s team etc). And any breach of up to £10m over would result in a transfer ban for 1 window

Whether your Luton or City, £300m is your limit

The best idea, but the cartel won't agree with it because it's fair and let's be fair the cartel run football.

 

[mahermi1]

This will be the case whatever system that could be introduced because the 6 have had a head start on the rest in terms of making huge money. The salary cap would be something to prevent clubs going into meltdown off the field which puts clubs at serious risk of going under. It might even force clubs to go back to developing young players that come through the youth system into their 1st team rather than blowing tens of millions on players who are only interested in the pay.

No it wouldn't, as mentioned above by a other poster, a £300m spending cap including wages for all clubs, then within 2 or three years football would be equal.

 

[nsno-chris]

The best idea, but the cartel won't agree with it because it's fair and let's be fair the cartel run football.

Imagine having a fair system

*holds big fat tummy and laughs mischievously

 

[gedefc]

And the 2030 premier league first round draft pick goes to Everton FC

Everton FC choose Christiano Ronaldo Jnr

Everton choose Dele Alli.

 

[MikeH72]

Imagine having a fair system

*holds big fat tummy and laughs mischievously

Alright calm down Rafael