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League 1 & 2 Squad Salary Cap and Squad Size Restrictions

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League 1 & 2 Squad Salary Cap and Squad Size Restrictions

Postby Tippy Tappy Football » Sat May 23, 2020 8:30 am

Some info on the squad salary cap and squad size proposals for League 1 and League 2 from the Doncaster Free Press. It says they are proposing a £1.5 million squad salary cap for League 2 which the Stags have probably exceeded for the last four seasons. In fact, we have probably exceeded the proposed League 1 squad salary cap of £2.5 million for the last three seasons. We probably had a similar playing budget to Donny Rovers last season of between £2.5-£3 million which is said to be the 6th-8th best in League 1.


WHAT WILL THE WAGE CAP INVOLVE?
All clubs in League One would be restricted to a squad salary cap of £2.5m per season. There would be no variation from club to club based on income and revenue. In League Two, the wage cap would be £1.5m (BBC website says £1.25 million). Dale Vince has suggested fixed amounts of £3.6m for League One clubs and £2m for teams in League Two.

Any promotion-related bonuses would not be included within salary cap restrictions.

Discussions will take place on potential punishments for those who breach salary cap regulations but it is thought that points deductions are favoured.

WHAT ELSE IS BEING PROPOSED?
It has been reported that clubs will be asked to vote on whether or not to limit squad sizes to 20 senior players - those aged 21 or over. Squad sizes up to 22 senior players would be permitted for the first year.

Within that 20, it is suggested that eight should be 'homegrown' players. Current EFL 'homegrown' regulations state a player should have been registered with his current club or another club affiliated to the FA or Welsh FA for three or more seasons prior to their 21st birthday. 'Homegrown' is a different category to 'club developed' players. Clubs are currently obliged to name seven 'homegrown' players in any matchday squad.

Further to the proposed new squad restrictions, and with the goal of driving youth development, there would be no restriction on the number of players aged 20 or under in a squad.

Also, regulations will be put in place to ensure any club which fails to pay its players on time will be hit with automatic points deductions. Previously, clubs have been taken to EFL disciplinary panels to determine punishments.

WHEN WILL THIS COME INTO PLAY?
The proposals would require the backing of 75 per cent of clubs to be passed, according to reports. Discussions and a deciding vote are unlikely to take place until the fate of the 2019/20 season across the EFL divisions is decided. The EFL are thought to want the measures in place for the start of the 2020/21 season, though will provide some initial leniency to allow clubs to fall into line.

Clubs relegated from the Championship would be permitted one season to transition into the wage restrictions.

HOW WOULD THIS AFFECT ROVERS?
Rovers' playing budget is consistently pitched to be around the sixth to eighth best in League One. On estimated figures, this equates to between £2.5m and £3m per season.

https://www.doncasterfreepress.co.uk/sp ... rs-2861910

https://www.skysports.com/football/news ... -by-monday

https://www.bbc.co.uk/sport/football/52738597
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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby cassellswasmagic » Sat May 23, 2020 9:16 am

“Any promotion-related bonuses would not be included within salary cap restrictions”.

Here’s Stags get out clause. You could get the best players, by giving out the highest promotion bonuses. Maybe £1M between the squad!!! That takes it back to £2.5M. I find it hard to believe that’s not included as a child could get round that one.
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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby MTFCMAD » Sat May 23, 2020 9:27 am

cassellswasmagic wrote:“Any promotion-related bonuses would not be included within salary cap restrictions”.

Here’s Stags get out clause. You could get the best players, by giving out the highest promotion bonuses. Maybe £1M between the squad!!! That takes it back to £2.5M. I find it hard to believe that’s not included as a child could get round that one.



It’s probably still more risk free than the current set up though. The new system looks designed to create profitable clubs. Total wage bill would end up being around £2.5m -£3m inc coaches, Office staff and what not.

I hope it’s introduced along with the points penalty for failing to pay wages.

Players may now also factor in on joining clubs with better facilities and stuff which is where our training ground and hopefully new Bishop street stand and maybe but probably not now the proposed hotel.
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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby arsene wengers coat » Sat May 23, 2020 12:20 pm

Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but because L1&2 clubs aren't bank rolled we have to have to all be subjected to Draconian punitive measures a across the board. What we have is an opportunity for betterment whipped from underneath us because we're not bankrolled, while the bankrolling gaps in the premier League remain massive, uncontrolled and growing.

It's like a proposal to keep clubs that are down and out, down and out.

The FA, for me, are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. We need self governance because the FA certainly aren't fit to do it. Clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that businesses (and clubs) will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. What the cap will do is reduce the gap between the worst and the best in L1&2 unfairly, while simultaneously widening the gap between L1&2 and the Championship. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

Society is in a mess now but competing companies in other industries do not have interventionist restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances. Plan for the future, be resilient and dynamic dont rely on handouts and bailouts. Those that can't or don't will and should get relegated or worse still. But that's life I'm afraid.

We do need to protect the integrity of our league, but holding back Sunderland because Rochdale can't pay it's bills is not the way. A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.
Last edited by arsene wengers coat on Sat May 23, 2020 1:17 pm, edited 3 times in total.
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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby cassellswasmagic » Sat May 23, 2020 12:20 pm

MTFCMAD wrote:
cassellswasmagic wrote:“Any promotion-related bonuses would not be included within salary cap restrictions”.

Here’s Stags get out clause. You could get the best players, by giving out the highest promotion bonuses. Maybe £1M between the squad!!! That takes it back to £2.5M. I find it hard to believe that’s not included as a child could get round that one.



It’s probably still more risk free than the current set up though. The new system looks designed to create profitable clubs. Total wage bill would end up being around £2.5m -£3m inc coaches, Office staff and what not.

I hope it’s introduced along with the points penalty for failing to pay wages.

Players may now also factor in on joining clubs with better facilities and stuff which is where our training ground and hopefully new Bishop street stand and maybe but probably not now the proposed hotel.

:thumbup:
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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby cassellswasmagic » Sat May 23, 2020 12:21 pm

arsene wengers coat wrote:Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but now we have to have an opportunity for betterment whipped from underneath us, while the gaps in the premier League remain massive and uncontrolled.

It's like a proposal to keep clubs that are down and out, down and out.

We need self governance. clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that clubs will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

The FA, for me are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. Society is in a mess now but competing companies in other industries do not have interventionis restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances, those that can't or don't will get relegated or worse still.

A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby garlic » Sun May 24, 2020 6:53 pm

arsene wengers coat wrote:Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but because L1&2 clubs aren't bank rolled we have to have to all be subjected to Draconian punitive measures a across the board. What we have is an opportunity for betterment whipped from underneath us because we're not bankrolled, while the bankrolling gaps in the premier League remain massive, uncontrolled and growing.

It's like a proposal to keep clubs that are down and out, down and out.

The FA, for me, are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. We need self governance because the FA certainly aren't fit to do it. Clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that businesses (and clubs) will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. What the cap will do is reduce the gap between the worst and the best in L1&2 unfairly, while simultaneously widening the gap between L1&2 and the Championship. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

Society is in a mess now but competing companies in other industries do not have interventionist restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances. Plan for the future, be resilient and dynamic dont rely on handouts and bailouts. Those that can't or don't will and should get relegated or worse still. But that's life I'm afraid.

We do need to protect the integrity of our league, but holding back Sunderland because Rochdale can't pay it's bills is not the way. A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

I get the gist of your argument but fail to understand why the Premier League shouldnt also face a salary cap? Personally, I think the way forward is to close the funding of clubs through the tax loophole, so all external funding, loans, gifts,etc should be in the form of bought shares so there is no debt and there is no incentive to pile debt onto a football club. The next step of course is to have a fixed debt to income ratio, which would apply to all clubs, even the Premier League so that current debt levels must be reduced to that ratio before any more income is spent.
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Re: League 1 & 2 Squad Salary Cap and Squad Size Restriction

Postby groundhoppingstag » Sun May 24, 2020 7:49 pm

garlic wrote:
arsene wengers coat wrote:Does anybody else feel that this wage cap and squad cap is some kind of post-capitalist retrospective intervention that should be binned off asap.

It's ok for the premier League clubs to be bank rolled by Saudis with £billions, but because L1&2 clubs aren't bank rolled we have to have to all be subjected to Draconian punitive measures a across the board. What we have is an opportunity for betterment whipped from underneath us because we're not bankrolled, while the bankrolling gaps in the premier League remain massive, uncontrolled and growing.

It's like a proposal to keep clubs that are down and out, down and out.

The FA, for me, are useless, looking after those with the most while also looking to slam shut the limited window of opportunity on those with the least. We need self governance because the FA certainly aren't fit to do it. Clubs should cut their budgets accordingly and if that means there is some reordering in the league then so be it. It's only when there is a real existential threat that businesses (and clubs) will run sustainably. If clubs keep getting bailed out time and again, they won't change, knowing that they will always be bailed out. What the cap will do is reduce the gap between the worst and the best in L1&2 unfairly, while simultaneously widening the gap between L1&2 and the Championship. Financial crisis of 2008 ring any bells?

I don't want clubs to fold, but I also don't want clubs that are not in financial disarray to be punished or held back because others are in financial mess.

Society is in a mess now but competing companies in other industries do not have interventionist restrictions applied. There aren't wage caps in the advertising industry for example, to ensure all similar sized companies are kept the same size.

Football may need it's own 'carillion' before clubs are run properly. We need a fair financial playing field as it is in other business and industries. Clubs should adapt and change according to the circumstances. Plan for the future, be resilient and dynamic dont rely on handouts and bailouts. Those that can't or don't will and should get relegated or worse still. But that's life I'm afraid.

We do need to protect the integrity of our league, but holding back Sunderland because Rochdale can't pay it's bills is not the way. A league is a meritocracy in practice; best at the top, worst at the bottom. The wage and squad cap is totally the opposite of that.

Some sort of John Rawls style cap is not the answer.

I get the gist of your argument but fail to understand why the Premier League shouldnt also face a salary cap? Personally, I think the way forward is to close the funding of clubs through the tax loophole, so all external funding, loans, gifts,etc should be in the form of bought shares so there is no debt and there is no incentive to pile debt onto a football club. The next step of course is to have a fixed debt to income ratio, which would apply to all clubs, even the Premier League so that current debt levels must be reduced to that ratio before any more income is spent.


I'm liking your proposal for debt to income ratio.
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