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Salary cap.

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Re: Salary cap.

Postby wardy12345 » Thu Aug 06, 2020 5:06 pm

I don’t know how a wage cap would work somewhere it would prevent promoted teams competing if the gaps to large as each team in the league will spend upto the limit.

It would probably be better to make each club start the season debt free and if they don’t a 30 point deduction is applied. That would keep teams living within their means, and all clubs must own their ground
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Re: Salary cap.

Postby MTFCMusings » Thu Aug 06, 2020 6:44 pm

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Re: Salary cap.

Postby oldweststander » Thu Aug 06, 2020 7:22 pm

MTFCMusings wrote:



Interesting, the PFA are talking a possible unlawful act, now what will the EFL do, head for the hills or bury head in the sand?
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Re: Salary cap.

Postby Big yella » Thu Aug 06, 2020 8:12 pm

oldweststander wrote:
MTFCMusings wrote:



Interesting, the PFA are talking a possible unlawful act, now what will the EFL do, head for the hills or bury head in the sand?

Unlawful act my harris.

It would be unlawful to change any existing contract without consultation, but the salary cap isn't proposing that. In fact there is provision in the proposed cap to allow for existing contracts (anything exceeding the average wage will be counted at the average wage for the length of that contract). Any new contract offered and accepted under a cap would have the same protection, it just wouldn't be able to claim the 'average relief' under the salary cap.
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Re: Salary cap.

Postby NorthLondonStag » Thu Aug 06, 2020 9:02 pm

The report itself is worth a read if you are Interested. It contains a lot of analysis on League One and League Teo finances and some of the issues with a salary cap.

https://www.thepfa.com/-/media/Files/PF ... .pdf?la=en
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Re: Salary cap.

Postby I am Spartacus » Fri Aug 07, 2020 9:26 am

Shock Headline, ‘Union Leader whips up his members in a bid to keep the status quo’.

Or Gordon Taylor and the PFA, despite being (I think it is 2 investigations at the moment) investigations by the Charities Commission are hell bent on keeping the unsustainability of lower league clubs whilst allowing the Premier League to do as it likes.
Anything to do with the % of the TV Premier League deal that goes to the PFA by any chance, Gordon?
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Re: Salary cap.

Postby MTFCMusings » Fri Aug 07, 2020 1:38 pm

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Re: Salary cap.

Postby lifestags » Fri Aug 07, 2020 1:39 pm

raspberry sake
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Re: Salary cap.

Postby Conker » Fri Aug 07, 2020 1:44 pm

I think long term this is better, although I do think the limits are a tad low.
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Re: Salary cap.

Postby Sneag » Fri Aug 07, 2020 1:45 pm

MTFCMusings wrote:


I'm sure the clubs with money will have already worked out a way of getting round the rules.
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Re: Salary cap.

Postby Martin Shaw » Fri Aug 07, 2020 1:53 pm

a reminder of what John Radford (on behalf of League Two clubs) and David Sharpe already said about this: viewtopic.php?p=831277#p831277
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Re: Salary cap.

Postby lifestags » Fri Aug 07, 2020 1:56 pm

I suppose it’s a good thing in the long run, will mean players will have to accept less wages so we’re not being held ransom.

The only way a player will be able to get higher is if he can attract a higher league team is that right?
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Re: Salary cap.

Postby MTFCMusings » Fri Aug 07, 2020 1:58 pm

lifestags wrote:I suppose it’s a good thing in the long run, will mean players will have to accept less wages so we’re not being held ransom.

The only way a player will be able to get higher is if he can attract a higher league team is that right?


Not necessarily. It depends how a club wants to distribute its wage budget.

I really disagree with it all. Why should all football clubs be on an equal footing?
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Re: Salary cap.

Postby Martin Shaw » Fri Aug 07, 2020 1:59 pm

from https://www.efl.com/news/2020/august/sq ... eague-two/

'Squad Salary Caps' introduced in League One and League Two

Clubs in League One and League Two have today voted for the introduction of new financial controls in the form of ‘Squad Salary Caps’ into their respective divisions which take effect immediately.

The decision follows extensive and comprehensive consultation with all Clubs in respect of addressing sustainability and wage inflation issues across the EFL which were initiated prior to the suspension of football in March following the COVID-19 outbreak and have continued during the course of the summer.

Those discussions culminated in today’s divisional vote, with representatives of League One and League Two Clubs opting to implement the new measures in place of the existing Salary Cost Management Protocols (SCMP), with fixed caps of £2.5million and £1.5million respectively.

Discussions continue with Championship Clubs in respect to amendments to their own financial controls. League One and Two Clubs are also going to continue discussions towards the introduction of additional measures aimed at addressing Club financial sustainability.

When calculating total salary spending, the ‘cap’ includes:

Basic Wages;

Taxes;

Bonuses;

Image rights;

Agents’ fees and;

Other fees and expenses paid directly or indirectly to all registered players.

Payments directly linked to a Club’s progression in cup competitions or promotion are excluded from the Cap, while any income generated from players going out on loan is deducted from the Club’s Salary Cap calculation.

Transition arrangements have been incorporated in respect of a Club’s squad salary cap calculation with the key element of these aimed at addressing committed contracts and relegated Clubs. Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire.

An ‘overrun’ concept is also included if a Club’s total squad salary payments exceed the Cap by up to 5%, whereby dependent on the percentage level of the overrun, a financial penalty would be payable for every £1 in excess. Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission, although the EFL will monitor the Cap on a real-time basis throughout the season as is the current position with SCMP measures across the two divisions. Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission.

EFL CEO, David Baldwin said: “The term ‘salary cap’ is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations. The financial impact of Covid-19 will be profound for EFL Clubs and today’s vote will help ensure Clubs cannot extend themselves to the point that could cause financial instability.

“Over the last two weeks the discussions amongst Clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the Clubs have determined to adopt the new approach. We will now work with all Clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL.”
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Re: Salary cap.

Postby Jimstag » Fri Aug 07, 2020 2:00 pm

Any ideas how it will be phased in e.g. I assume clubs with higher commitments at the moment can’t just sack players to reduce values
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Re: Salary cap.

Postby Stags 2002 » Fri Aug 07, 2020 2:07 pm

Sneag wrote:
MTFCMusings wrote:


I'm sure the clubs with money will have already worked out a way of getting round the rules.


Yes promotional and cup progressional bonuses are exempt.I.e if you want paying get us promoted and go on a cup run.

Doesn't apply to under 21's so focus will be on youth too.

Wages, bonuses and "other fees" is other fees signing on fees including loan signing on fees?

From a sustainability point the cap makes sense, however can't help but think it's another step towards premier league B teams as will no doubt increase teams asking for players from the leagues above for support.

Surprised other than Bolton there wasn't a mad rush of signings being made yesterday as its come in immediately it may mean players with offers have them withdrawn or suddenly sign-up to whats on offer for the risk of missing out.
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Re: Salary cap.

Postby Scothie the Stag » Fri Aug 07, 2020 2:13 pm

Very intriguing. As said it will naturally reduce some players wages.

I wonder how many steady league two players and promising players it'll force to leave the game to pursue other careers? It's a short career as it is and at this level most aren't fantastically paid. Many will be able to get better wages in a trade/similar and a longer one at that.
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Re: Salary cap.

Postby StagsFan83 » Fri Aug 07, 2020 2:21 pm

How will this effect clubs like Salford and Bolton who must surely be well over?
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Re: Salary cap.

Postby Dan » Fri Aug 07, 2020 2:23 pm

StagsFan83 wrote:How will this effect clubs like Salford and Bolton who must surely be well over?


They’ll just give the players ‘other jobs’ like admin. That’s how Notts County got away with Sol Campbell.
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Re: Salary cap.

Postby oldweststander » Fri Aug 07, 2020 2:28 pm

If we are signing any highly paid players the business has to be done by close of play today or they become more involved in the cap.
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Re: Salary cap.

Postby MTFCMusings » Fri Aug 07, 2020 2:30 pm

oldweststander wrote:If we are signing any highly paid players the business has to be done by close of play today or they become more involved in the cap.


I wouldn’t worry too much about the club being caught off guard. We were one of the clubs pushing for it, and Sharpe said in his interview with D3D4 that he had planned for different budgets based on the potential of W cap coming in to play.
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Re: Salary cap.

Postby Billy the fish » Fri Aug 07, 2020 2:37 pm

Dilutes the game from a viewing spectacle even further for your lower tier fan .
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Re: Salary cap.

Postby Martin Shaw » Fri Aug 07, 2020 2:38 pm

MTFCMusings wrote:
oldweststander wrote:If we are signing any highly paid players the business has to be done by close of play today or they become more involved in the cap.


I wouldn’t worry too much about the club being caught off guard. We were one of the clubs pushing for it, and Sharpe said in his interview with D3D4 that he had planned for different budgets based on the potential of W cap coming in to play.

indeed. See the link above to full John Radford and David Sharpe comments.

Also: "...‘Squad Salary Caps’ into their respective divisions which take effect immediately."
"Four points clear as Lincoln are McCaffreyised", CHAD headline, April 1975
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Re: Salary cap.

Postby Tippy Tappy Football » Fri Aug 07, 2020 2:56 pm

Clubs in League One and League Two have today voted for the introduction of new financial controls in the form of ‘Squad Salary Caps’ into their respective divisions which take effect immediately. The decision follows extensive and comprehensive consultation with all Clubs in respect of addressing sustainability and wage inflation issues across the EFL which were initiated prior to the suspension of football in March following the COVID-19 outbreak and have continued during the course of the summer.

Those discussions culminated in today’s divisional vote, with representatives of League One and League Two Clubs opting to implement the new measures in place of the existing Salary Cost Management Protocols (SCMP), with fixed caps of £2.5million and £1.5million respectively. Discussions continue with Championship Clubs in respect to amendments to their own financial controls. League One and Two Clubs are also going to continue discussions towards the introduction of additional measures aimed at addressing Club financial sustainability.

When calculating total salary spending, the ‘cap’ includes:

• Basic Wages;
• Taxes;
• Bonuses;
• Image rights;
• Agents’ fees and;
• Other fees and expenses paid directly or indirectly to all registered players.

Payments directly linked to a Club’s progression in cup competitions or promotion are excluded from the Cap, while any income generated from players going out on loan is deducted from the Club’s Salary Cap calculation.

Transition arrangements have been incorporated in respect of a Club’s squad salary cap calculation with the key element of these aimed at addressing committed contracts and relegated Clubs. Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire.

An ‘overrun’ concept is also included if a Club’s total squad salary payments exceed the Cap by up to 5%, whereby dependent on the percentage level of the overrun, a financial penalty would be payable for every £1 in excess. Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission, although the EFL will monitor the Cap on a real-time basis throughout the season as is the current position with SCMP measures across the two divisions. Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission.

EFL CEO, David Baldwin said: “The term ‘salary cap’ is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations. The financial impact of Covid-19 will be profound for EFL Clubs and today’s vote will help ensure Clubs cannot extend themselves to the point that could cause financial instability.

“Over the last two weeks the discussions amongst Clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the Clubs have determined to adopt the new approach. We will now work with all Clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL.”

https://www.efl.com/news/2020/august/sq ... eague-two/
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Re: Salary cap.

Postby cassellswasmagic » Fri Aug 07, 2020 3:18 pm

More reliance on youth hopefully.
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