EFL Proposing Salary Caps

[TrinidadsNumberOne]

I agree that relegation cuts should be mandatory, but then the argument from the PL clubs would be "But we can't attract the best talent if we have to include them" and of course, the self-serving PL executives will always fight their corner as the PL brand must have no limitations in their eyes. So it looks like they'll be there to stay. Plus they encourage clubs to spend once they make the PL as before in the 90s and 00s, too many clubs were happy to pocket the rewards of PL status rather than invest significant sums of money to stay there. But now it's gone too far the way of unsustainable overspending. Either way, the game is a mess, especially in the top two levels.

 

[Luke Imp]

Apparently the proposal is £2.5m for L1 and £1.25m for L2.

 

[TrinidadsNumberOne]

Apparently the proposal is £2.5m for L1 and £1.25m for L2.

Interesting, I think the final figures will be higher than that, but I'd have the Top 10 in L1 except Wycombe at that cap or above. Bolton are probably well above it too and you could imagine a few bottom half sides are.

In League Two I know us, Macc and Morecambe will definitely be below that figure. Possibly clubs like Newport, Cheltenham and Carlisle too. The rest will surely be over that.

That's why I see those limits possibly being raised a bit, but it's a start!

As Cowling at Colchester has said, too many teams have blown the increased solidarity payments and increased TV income on squad reinforcements and has hinted bankrolled clubs in the division have been increasing wages to an extent where well-run clubs like Colchester had to pay more just to compete in the market.

This will explain why we've had such a low wage budget since 2011. We've always ploughed most the solidarity and TV money into the Academy instead. For years whilst we were selling players, I was wondering how clubs who weren't selling players or raising income through other revenue streams could afford the calibre of player they were signing which we were priced out of. But it's now clear many clubs were trying to keep up with the bankrolled likes of Fleetwood, Crawley (when they had cash) and nowadays Salford.

This is why I'm against any kind of bailout for EFL clubs, the money would immediately be spunked on increased wages if there's no cap. It's time for a hard cap to force clubs to upgrade revenue streams or infrastructure if they want a long term future, not to have arms races to sign a 10 goal striker for £200,000 a year.

Funnily enough, the Championship don't want a salary cap and want to continue selling off their stadiums and training grounds to fund unsustainable promotion bids. In that case, let them go under in a few years. I'm sure if we're well run and sustainable we'll be able to fill the void in the future.

 

[chipmunx]

Interesting, I think the final figures will be higher than that, but I'd have the Top 10 in L1 except Wycombe at that cap or above. Bolton are probably well above it too and you could imagine a few bottom half sides are.

In League Two I know us, Macc and Morecambe will definitely be below that figure. Possibly clubs like Newport, Cheltenham and Carlisle too. The rest will surely be over that.

That's why I see those limits possibly being raised a bit, but it's a start!

As Cowling at Colchester has said, too many teams have blown the increased solidarity payments and increased TV income on squad reinforcements and has hinted bankrolled clubs in the division have been increasing wages to an extent where well-run clubs like Colchester had to pay more just to compete in the market.

This will explain why we've had such a low wage budget since 2011. We've always ploughed most the solidarity and TV money into the Academy instead. For years whilst we were selling players, I was wondering how clubs who weren't selling players or raising income through other revenue streams could afford the calibre of player they were signing which we were priced out of. But it's now clear many clubs were trying to keep up with the bankrolled likes of Fleetwood, Crawley (when they had cash) and nowadays Salford.

This is why I'm against any kind of bailout for EFL clubs, the money would immediately be spunked on increased wages if there's no cap. It's time for a hard cap to force clubs to upgrade revenue streams or infrastructure if they want a long term future, not to have arms races to sign a 10 goal striker for £200,000 a year.

Funnily enough, the Championship don't want a salary cap and want to continue selling off their stadiums and training grounds to fund unsustainable promotion bids. In that case, let them go under in a few years. I'm sure if we're well run and sustainable we'll be able to fill the void in the future.

As there isn't a great deal of difference between the top teams in the NL and at least the bottom half of EFL D2 that would bode well for any well ran clubs coming up to D2. Our average wage is £700/750 a week so it would be far easier for us to meet a £1.25m limit than most of current L2 clubs who will be stuck with "old" inflated contracts, whereas any new contracts would likely be at much lower amounts than they previously would have been.
I'm not sure what Harrogates wages are like - but John Stead is rumoured to be on something like £2000/week, although the rest will be probably closer to our figures. Notts however I would guess would be over the £1.25m figure this season given the players they have and the sheer size of their squad and the fact some players are still on higher EFL contacts from their time in D2.

 

[TrinidadsNumberOne]

As there isn't a great deal of difference between the top teams in the NL and at least the bottom half of EFL D2 that would bode well for any well ran clubs coming up to D2. Our average wage is £700/750 a week so it would be far easier for us to meet a £1.25m limit than most of current L2 clubs who will be stuck with "old" inflated contracts, whereas any new contracts would likely be at much lower amounts than they previously would have been.
I'm not sure what Harrogates wages are like - but John Stead is rumoured to be on something like £2000/week, although the rest will be probably closer to our figures. Notts however I would guess would be over the £1.25m figure this season given the players they have and the sheer size of their squad and the fact some players are still on higher EFL contacts from their time in D2.

The thing that worries me is, if the NL remains unregulated (and I feel they wouldn't give a toss about salary caps), it's going to be an absolute nightmare when bankrolling owners demand exemptions and caveats for the FL cap for a year citing they can't offload or renegotiate player contracts so suddenly and that they must be honoured, thus conveniently allowing them to potentially jump up to League One where the cap is more on a level with their budget.

If our lower divisions adopt a cap, then the NL has to follow, no doubt about that one.

 

[Kenneth E End]

So if we get relegated this summer to L1, we automatically have to reduce our wage bill to £2.5m regardless of income?

It would mean that our best players are cherrypicked by the division above at vastly reduced sums.

Why should a club the size of ours be restricted to the same amount as Accrington when the club works hard to be sustainable and boasts attendances (and therefore income) probably 7-8x?

 

[chipmunx]

So if we get relegated this summer to L1, we automatically have to reduce our wage bill to £2.5m regardless of income?

It would mean that our best players are cherrypicked by the division above at vastly reduced sums.

Why should a club the size of ours be restricted to the same amount as Accrington when the club works hard to be sustainable and boasts attendances (and therefore income) probably 7-8x?

1 would imagine teams coming down a level would have a season before they had to meet the rules to avoid that.

 

[Luke Imp]

Interesting, I think the final figures will be higher than that, but I'd have the Top 10 in L1 except Wycombe at that cap or above. Bolton are probably well above it too and you could imagine a few bottom half sides are.

In League Two I know us, Macc and Morecambe will definitely be below that figure. Possibly clubs like Newport, Cheltenham and Carlisle too. The rest will surely be over that.

That's why I see those limits possibly being raised a bit, but it's a start!

As Cowling at Colchester has said, too many teams have blown the increased solidarity payments and increased TV income on squad reinforcements and has hinted bankrolled clubs in the division have been increasing wages to an extent where well-run clubs like Colchester had to pay more just to compete in the market.

This will explain why we've had such a low wage budget since 2011. We've always ploughed most the solidarity and TV money into the Academy instead. For years whilst we were selling players, I was wondering how clubs who weren't selling players or raising income through other revenue streams could afford the calibre of player they were signing which we were priced out of. But it's now clear many clubs were trying to keep up with the bankrolled likes of Fleetwood, Crawley (when they had cash) and nowadays Salford.

This is why I'm against any kind of bailout for EFL clubs, the money would immediately be spunked on increased wages if there's no cap. It's time for a hard cap to force clubs to upgrade revenue streams or infrastructure if they want a long term future, not to have arms races to sign a 10 goal striker for £200,000 a year.

Funnily enough, the Championship don't want a salary cap and want to continue selling off their stadiums and training grounds to fund unsustainable promotion bids. In that case, let them go under in a few years. I'm sure if we're well run and sustainable we'll be able to fill the void in the future.

£2.5m isn't even the average L1 budget, so they both seem low to me.

I'm not sure how you'd regulate the relegation sides either because, for example, if the Championship aren't on board with salary caps (and they won't be) that creates a bigger gap than there already is. You could give them a grace period but then you've got a gap between the relegated Championship teams to other L1 teams in the same way that there's disparity between PL relegated sides and other Championship ones.

 

[TrinidadsNumberOne]

£2.5m isn't even the average L1 budget, so they both seem low to me.

I'm not sure how you'd regulate the relegation sides either because, for example, if the Championship aren't on board with salary caps (and they won't be) that creates a bigger gap than there already is. You could give them a grace period but then you've got a gap between the relegated Championship teams to other L1 teams in the same way that there's disparity between PL relegated sides and other Championship ones.

We only got relegated from L1 in 2016 and I tell you, it's changed beyond recognition in the last four years, because a lot of clubs would've easily complied with £2.5 million save for Wigan, Millwall, Barnsley, Doncaster, Scunthorpe and quite possibly Bradford in the division at the time.

Lot of clubs are going for it in pursuit of Championship cash. But I disagree with the Championship rejecting financial controls. Almost the entire division is fuelled by debt, and surely the banks and loan facilities aren't going to allow them to amass this debt forever. If they reject it now, a bigger crisis will hit them down the line...

 

[Boletus Edulis]

So if we get relegated this summer to L1, we automatically have to reduce our wage bill to £2.5m regardless of income?

It would mean that our best players are cherrypicked by the division above at vastly reduced sums.

Why should a club the size of ours be restricted to the same amount as Accrington when the club works hard to be sustainable and boasts attendances (and therefore income) probably 7-8x?

Agreed. If we are promoted our business model has been based on making us sustainable. If we are able to bring in non football income and continue to have a strong fan base, why should our spending be the same as a side with half our fan base and limited conference facilities? The club has invested a lot to make us sustainable. This would be a kick in the teeth.

 

[Boletus Edulis]

£2.5m isn't even the average L1 budget, so they both seem low to me.

I'm not sure how you'd regulate the relegation sides either because, for example, if the Championship aren't on board with salary caps (and they won't be) that creates a bigger gap than there already is. You could give them a grace period but then you've got a gap between the relegated Championship teams to other L1 teams in the same way that there's disparity between PL relegated sides and other Championship ones.

Except none of us know how much lower salaries are going to go. Our CEO hypothesised it could be as much as 50%. So the issue is not necessarily where the bar is, but that clubs who earn more through their own efforts won’t be able to spend if they get more than the bar. American sports here we come.

 

[Kenneth E End]

I understand that clubs have failed in the aspect of being able to look after themselves, so as such being needed to be treated like toddlers, but I go back to the point I made on here a couple of weeks ago - the best plan, in my eyes, is to have a 3-year break even rule. Not a £39m loss rule.

 

[Indian Dan]

Here we go. £2.5m in L1, £1.25m in L2. Maximum of 20 senior players, 8 academy players included in that 20

https://www.bbc.com/sport/football/52738597

 

[Luke Imp]

Except none of us know how much lower salaries are going to go. Our CEO hypothesised it could be as much as 50%. So the issue is not necessarily where the bar is, but that clubs who earn more through their own efforts won’t be able to spend if they get more than the bar. American sports here we come.

True, we might as well just throw a random figure at it. I think the current rules need to be tightened up rather than an all out salary cap. The cap will create a more level playing field and reduce the gap between the top and bottom spenders, but it'll hamper those who can afford bigger budgets (I don't mean ones throwing silly money around, I mean the ones that can genuinely afford to pay better wages).

There's always a worry that owners will walk away but if they're made to put money in via equity or sponsorship (that are now scrutinised to avoid inflated deals) and make them personally liable for remaining money on contracts handed out under their ownership then they'll think twice. It's too easy for someone to come in, hand this and that out and have no personal repercussions.

Peter Swann spent more at Gainsborough Trinity than they could ever afford but when he went to Scunthorpe he left Trinity with enough money to cover the contracts he had handed out during his time. That's how it should be done. It's too easy to loan a club money, spend like crazy, put a club into trouble and walk away.

It'll be interesting to see how they'd plan to enforce it for promoted and relegated sides. They'll be NL clubs running with wage budgets higher than the L2 cap.

 

[chipmunx]

Here we go. £2.5m in L1, £1.25m in L2. Maximum of 20 senior players, 8 academy players included in that 20

https://www.bbc.com/sport/football/52738597

they'd also have to exempt NL teams coming up from the academy part as NL clubs generally don't have them* - maybe replacing that with say 8 under 23 players?

*We do have a development squad - but that only started this last season so getting 8 from that would be virtually impossible 1st season up.

 

[Indian Dan]

Should be fun watching Sunderland conforming to that level!

 

[chipmunx]

It'll be interesting to see how they'd plan to enforce it for promoted and relegated sides. They'll be NL clubs running with wage budgets higher than the L2 cap.

Notts County for 1

 

[That Fat Centre Half]

Good luck to the teams going from League 1 to the Championship. With caps at those levels for League 1 no way are they going to be able to compete, its hard enough as is with the madness at that level growing all the time. Recipe to make the second tier a closed shop.

 

[chipmunx]

Good luck to the teams going from League 1 to the Championship. With caps at those levels for League 1 no way are they going to be able to compete, its hard enough as is with the madness at that level growing all the time. Recipe to make the second tier a closed shop.

Is that McNulty in your profile pic by the way?

 

[AdamStag]

I think his point is financially if you sell 10,000 at £150 your no financially better off in gates income than a club who sells 5000 at £300 (it is a great incentive so not slating it)

Exactly.

Bradford have done that for years and fair play to them. I remember going to a cracking game in league 1 on a Tuesday night when they beat Shrewsbury 4-3 in the last minute(real belter of a game) and they announced something like 16,000.

In reality there was about 7,000 - the Bradford fans behind us said slightly 8,000, bit obviously if the seats of being flogged for fuck all, in reality Plymouth average 11,000 are probably getting more fare revenue

 

[AdamStag]

Good luck to the teams going from League 1 to the Championship. With caps at those levels for League 1 no way are they going to be able to compete, its hard enough as is with the madness at that level growing all the time. Recipe to make the second tier a closed shop.

They were talking about a “premiership 2” on the sunday supplement on er, sunday haha. Copying what they do with the bundsaliga

 

[That Fat Centre Half]

Is that McNulty in your profile pic by the way?

Yes mate, bloody legend!

Remember his first game for us was away against you lot the weekend after we had beat Norwich in the cup, what a come down that was.

 

[chipmunx]

Yes mate, bloody legend!

Remember his first game for us was away against you lot the weekend after we had beat Norwich in the cup, what a come down that was.

He came to you from us via Fleetwood - although he was a lot slimmer from 2007-2009 than in that photo.

 

[That Fat Centre Half]

He came to you from us via Fleetwood - although he was a lot slimmer from 2007-2009 than in that photo.

Yeah I knew he had a decent spell with you.

The photo is shall we say, not his best side but he was pretty large whilst here. It was quite odd as I saw him in his civvies a few times and he didnt look particularly out of the ordinary size wise.

Scorer of one of my favourite goals too, an inspiration to slightly out of shape blokes, like myself, everywhere.

 

[Indian Dan]

Good luck to the teams going from League 1 to the Championship. With caps at those levels for League 1 no way are they going to be able to compete, its hard enough as is with the madness at that level growing all the time. Recipe to make the second tier a closed shop.

Surely it will be better. Take Sunderland, average attendance 30,000 @ £25 = £750,000 per game. 3 home games pays for their entire salary cap. Another 20 home games ticket money could go to the next season if they get to the Championship

 

[chipmunx]

Yeah I knew he had a decent spell with you.

The photo is shall we say, not his best side but he was pretty large whilst here. It was quite odd as I saw him in his civvies a few times and he didnt look particularly out of the ordinary size wise.

Scorer of one of my favourite goals too, an inspiration to slightly out of shape blokes, like myself, everywhere.

most of the goals he got for us were penalties - he was rather better at taking them under pressure than Jason Walker who you also got from us.

 

[AdamStag]

Used to love Mansfield playing against mcnulty - there’d always be a massive clanger he’d drop which usually led to a goal.

Just put someone pacey against him as he had the turning circle of the titanic.

clearly just didn’t play well against us by the sounds of things

 

[That Fat Centre Half]

most of the goals he got for us were penalties - he was rather better at taking them under pressure than Jason Walker who you also got from us.

Lets not talk about Jason Walker and penalties!!!

Surely it will be better. Take Sunderland, average attendance 30,000 @ £25 = £750,000 per game. 3 home games pays for their entire salary cap. Another 20 home games ticket money could go to the next season if they get to the Championship

Sunderland is kind of a massive outlier dont you think? What about teams like Wycombe, ourselves etc. Even using the Sunderland example, going from spending 2.5 million to the financial madhouse would be a massive ask all the while knowing if you go back down you have to get out from under it all again. If there is some kind of grace period to get under the cap then those teams getting relegated have a big advantage over teams under or at the cap in the next season - creating a potential yo-yo club environment.

Unless the Championship have a similar kind of cap (not likely with the owners at that level), teams coming up from League 1 will go from a league where they can only spend 2.5m to a League where everyone is spending an order of magnitude greater than that. You'd have teams starting from a low salary base competing against teams with playing budgets of 30/40 million and more.

We should be looking at strengthening existing rules than putting an arbitrary salary cap in place.

 

[The_Boss]

£1.25m still plenty for a squad of 20 with that make up.

You could have 12 "seniors" on £85k a year still, and even then the 8 "juniors" could be afforded £28.75k!! Plenty of room for scope and flex.

Also what about making the match day squads smaller again? Less strain being put on all the squad on a weekly basis. Only 4 subs and it gives room for injuries and suspensions without worrying about filling the bench.

 

[chipmunx]

£1.25m still plenty for a squad of 20 with that make up.

You could have 12 "seniors" on £85k a year still, and even then the 8 "juniors" could be afforded £28.75k!!

yeah - I put something similar on our site - it wouldn't be an issue for the likes of you, Morecambe or us.