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Official website: ‘Squad salary caps’ introduced in League One and League Two


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3 hours ago, Iron Curtain said:

My guess is it cant be challenged as it doesn't say "You cant pay a player more than X"... it says that a club will have to pay a penalty and be punished if their total salary goes too high. So a player technically isnt limited... strange notion though, and Im no lawyer.

The fact that its been around in Rugby for ages means their is precedent.

Ah that makes sense. In the same way ffp rules can limit players wages i suppose. 

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3 hours ago, Andyregs said:

Has anyone contested it? We didn’t have the Bosman ruling until he contested it. I’m not A lawyer so just wondering out loud.

https://www.lawinsport.com/topics/item/the-salary-cap-in-rugby-union

Almost certainly is legal. It doesn't affect freedom of movement. If it was challenged it would need to be by the clubs. Most people work under a salary cap - doctors, nurses, teachers etc. 

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https://www.lawinsport.com/topics/item/the-salary-cap-in-rugby-union
Almost certainly is legal. It doesn't affect freedom of movement. If it was challenged it would need to be by the clubs. Most people work under a salary cap - doctors, nurses, teachers etc. 
Nurses and Teachers don't. Private hospitals and schools are free to pay their staff more than they get in the public sector

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34 minutes ago, JRC said:

https://www.lawinsport.com/topics/item/the-salary-cap-in-rugby-union

Almost certainly is legal. It doesn't affect freedom of movement. If it was challenged it would need to be by the clubs. Most people work under a salary cap - doctors, nurses, teachers etc. 

Never thought of it that way either. It’s just never called a salary cap, but a ‘pay scale’. 

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10 minutes ago, Smallthorne Dog said:
42 minutes ago, JRC said:
https://www.lawinsport.com/topics/item/the-salary-cap-in-rugby-union
Almost certainly is legal. It doesn't affect freedom of movement. If it was challenged it would need to be by the clubs. Most people work under a salary cap - doctors, nurses, teachers etc. 

Nurses and Teachers don't. Private hospitals and schools are free to pay their staff more than they get in the public sector

League two players are free to apply for a job with a Premier League Club.

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I haven't seen this up anywhere else, but I'm extremely interested in sports finance and also American sports. Whereas NFL, NBA and NHL have hard salary caps, the MLB don't. Instead, they have a 'Luxury Tax'. If you decide to spend over a certain amount on salaries then for every dollar you are over, you are taxed an additional dollar. So say the threshold is set at $100m, and someone spends $110m then the team pays the league an additional $10m. This is then distributed to the other teams (I can't remember how specifically). I would say this is a consideration for the league to implement. Break the salary cap if you want, but you'll be giving money to your competitors if you do. 

 

I think overall, I'm against a salary cap. Not because I don't think teams need to be spending what they earn, of course they do. But there should be an opportunity for owners to invest (Sensibly and sustainably) in the playing staff to push their team forward. Arbitary salary caps work in closed leagues with no promotion/relegation. But look at the gaps this is going to create between the leagues within the EFL. Ok, the step up from L2 to L1 is ok, but teams in L1 who get promoted won't be able to bridge the gap to the Championship quick enough (Should a 18m cap be set as proposed). Then there's going to be a gap in between the bottom Premier League side and the Championship sides. Yo-yoing between leagues will become more and more common than it is now. 

I can't help but feel this might be the beginning of the end of true promotion/relegation between the whole pyramid. The Premier League clubs would prefer it if relegation was abolished and they had guaranteed income. What we're doing here is making the case for them by EFL teams getting promoted and not being competitive when they do go up there (and also for L1 teams in to the Championship). Don't be surprised in 5 years time if there's a Premier League 1/Premier League 2 system with the EFL as a separate entity. 

 

 

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This is a disaster for football. All that will happen is owners of clubs are going to start pocketing the money rather than players.

Don't get me wrong something needed to change but this is not the way forward. Whatever happened to sound business people running clubs within its means . Penalising players is not the way forward.

I assume there is going to be a cap lower than the current ticket pricing to attend a match, lower  my BT,Sky & Virgin subscriptions to reduce the income accordingly....no owners will keep finding ways to generate more money from fans and unscrupulous owners will take money out of football. FFS wake up EFL.

We are lucky we have good owners but can you imagine if you had a SMURF involved and what would happen??

Goodbye competitive football pyramid.

 

Edited by MBE

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9 hours ago, MBE said:

This is a disaster for football. All that will happen is owners of clubs are going to start pocketing the money rather than players.

Don't get me wrong something needed to change but this is not the way forward. Whatever happened to sound business people running clubs within its means . Penalising players is not the way forward.

I assume there is going to be a cap lower than the current ticket pricing to attend a match, lower  my BT,Sky & Virgin subscriptions to reduce the income accordingly....no owners will keep finding ways to generate more money from fans and unscrupulous owners will take money out of football. FFS wake up EFL.

We are lucky we have good owners but can you imagine if you had a SMURF involved and what would happen??

Goodbye competitive football pyramid.

 

Your post has one flaw. Business people run businesses to take money out. It's not the only reason but they have to just to keep a roof over their heads. Running football clubs often becomes an ego thing so they run them badly. Most sane business people would not touch a lower league club because ever spiralling player wages make it impossible to make a profit. For the most part the structure didn't attract people who run what you would term as traditional business people. It has attracted a surprisingly large number of what you would term property speculators.

For most clubs in league 2 the cap is higher than their wage budget. For Vale its marginally under our budget BUT our better paid players currently only count at 68k so in reality it will have no effect. It's not penalising the vast majority of players at this level. It will impact a small minority who are earning in the top 1% of incomes with 6 figure salaries. Under 21s are exempt so it isn't going to impact the poorest paid players at all. It will prevent the spiralling of wages clubs like Salford cause, where rich owners are happy to ignore fundamental business requirements for profit and spend whatever they need to land a player; which is distorting the market.

Smurthwaite is the only person I am aware of who almost certainly came out of owning a smaller club up on the deal but that is largely because our current owners paid him way more than the club is worth. They didn't buy it as a business decision they bought it because they have a deep conviction about supporting the community around their business. From their perspective it is one of a number of charitable donations they have made locally from the profits of a business they own with an aim of breaking even over time. For their investment to make sense from a business point of view you would want to be return quarter of a million profit regularly over time and that isn't going to happen.

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From our esteemed Chairlady:

- We voted FOR the cap 

- "So I am quietly confident it (the cap) is a good thing, particularly for a club like ours."

- "The cap is not a million miles from where we were operating anyway so it is not insurmountable"

- We still have room so it will not impact the GK + Striker business

 

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10 hours ago, JRC said:

For most clubs in league 2 the cap is higher than their wage budget

The cap figures are irrelevant. Sport is about competition, placing restrictions on salaries will limit that. Who cares if a club try's to buy the league with the best players in the market. This is what football clubs have tried to do since God was a lad. 

 

 

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10 minutes ago, MBE said:

The cap figures are irrelevant. Sport is about competition, placing restrictions on salaries will limit that. Who cares if a club try's to buy the league with the best players in the market. This is what football clubs have tried to do since God was a lad. 

 

 

Sport will always be a sporting competition.  Money in sport weighs the sporting market in favour of the guys with most money. The mad money in football wasn't as concentrated until the late 80s. 

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