General New EFL rule - Clubs have to make a profit

Fred

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Ref Wigan which I suspect have been losing money for decades!
I wouldn't be surprised if our present owners think Clubs should be forced to run as a going concern. Would Oxford fans be in favour of this EFL rule? It would mean drastic cuts in player wages! Wigan have a 25% ish chance of not finishing the season!
 

horseman

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Like everything in life these things are always "after the event"

in Other News All Business aim to make a Profit

That the Wigan takeover is being linked to a "Bet" on them being relegated should have alarms bells ringing but it wont because it's only Wigan.
 

m

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Well no bookie will pay out if Wigan do go down in these circs.

What would the obligations be on returning the stake if this insane scenario is shown to be true?
 

OUFCwaffle

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Looks like we are relying on the EFL to make important decisions on the future of its clubs. What could possibly go wrong?
 

horseman

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Well no bookie will pay out if Wigan do go down in these circs.

What would the obligations be on returning the stake if this insane scenario is shown to be true?
normal such circumstances would be voided win or lose, as for initial stake being returned,again normally yes but this may involve more than just a bet placement...in Horse Racing Owners cannot lay their horses to lose..Do we know if these guys were official Owners when a bet was placed? Like i said it appears there could be more to this than just a bet placement.
 
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HKYellow

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It will be interesting how this pans out regarding finances, players wages and the financial future of football below the Premiership.

Lots of discussions taking place involving the EFL, clubs boards and the PFA.
 

ZeroTheHero

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If (for example) there was a wage cap of £2.5m for L1 clubs and £12.5m for Championship clubs, how would that work for clubs relegated down? Presumably the players would have to have it written into their contracts that if relegated they would have the choice of either leaving (but that would impact the club's ability to sell them) or taking an 80% reduction in wages? Or would relegated clubs get some sort of parachute dispensation thus giving them an unfair advantage?
 

yellowbow

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If (for example) there was a wage cap of £2.5m for L1 clubs and £12.5m for Championship clubs, how would that work for clubs relegated down? Presumably the players would have to have it written into their contracts that if relegated they would have the choice of either leaving (but that would impact the club's ability to sell them) or taking an 80% reduction in wages? Or would relegated clubs get some sort of parachute dispensation thus giving them an unfair advantage?
I would say that last sentence pretty much nails it unfortunately. As Robinson has mentioned, its the start of the PL2.
 

bazzer9461

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If (for example) there was a wage cap of £2.5m for L1 clubs and £12.5m for Championship clubs, how would that work for clubs relegated down? Presumably the players would have to have it written into their contracts that if relegated they would have the choice of either leaving (but that would impact the club's ability to sell them) or taking an 80% reduction in wages? Or would relegated clubs get some sort of parachute dispensation thus giving them an unfair advantage?
Probably would get a parachute dispensation but probably only for 1 season, but I think that would also have to be negotiated with the premiership as a 3 year parachute payment total of 80 million is quite gross in reality.
 

RgYellows

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I'm not quite sure whether I am in favour of it yet, but I think the idea is worth exploring and I don't quite accept that this is bad for OUFC specifically yet either.

The truth is that we are miles away from being able to compete with most clubs in the Championship on a financial basis anyway. The current system stacks rewards in gaining promotion to the Premier League and that encourages clubs to spend money they might not have in an effort to earn a much greater reward. I've seen posts elsewhere on here about the amounts clubs in the Champ spend and they are eye opening. I'm not sure that it isn't already a PL2, as is often threatened when the salary cap suggestion is discussed.

A lot of clubs are run in a way that makes me nervous. Even at Oxford, we seem to rely on money from the owner and on being able to sell players for tidy profits, using that money to cover running expenses (plus the recruitment of new players to sell on at a profit later). What happens to Oxford if we make three or four bad signings in a row and don't have anyone to sell? Or if the Championship clubs stop paying the fees that we've come to expect for our players? Or if the owners decide they aren't going to put any more money in?

Bigger clubs can still do things to make themselves more attractive. They can offer players the chance to play in better stadiums in front of bigger crowds. They can offer bigger incentives in the way of wage rises if/when promoted to the Championship. They can also invest the leftover money in their academies, a source of competitive advantage and something that benefits English football as a whole.

There would certainly be things to iron out before it could be considered. Whether there should be a cap in the Championship, for instance (albeit much higher). What happens to relegated clubs is a key matter. Being relegated with a lot of players on big contracts didn't seem to help clubs like Sunderland, but moving on players with big wages after a bad year is difficult to do so I imagine that there would have to be some sort of allowance - maybe with a limit on what can be spent on new players. It doesn't seem totally unreasonable that players take a share of the risk with relegation clauses in their contracts.

It's a blunt tool, but I'm not sure that automatically makes it worse than the alternatives. Do nothing, and see clubs spend money they don't have and risk bankruptcy or points deductions whilst L1 and L2 fall further behind the Championship? Keep trying to police FFP, a much more complex set of rules with apparent potential for loopholes and disputes?

A cap has worked in other sports. I'd like to see it discussed seriously, at the least.
 

Fred

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Should the Premier League share more of the TV money throughout the Leagues? do other sports do it? And what percentage?
 

Sarge

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Should the Premier League share more of the TV money throughout the Leagues? do other sports do it? And what percentage?
yes... the FA should grow a pair and stop being dictated to by the PL
 

oufc1991

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yes... the FA should grow a pair and stop being dictated to by the PL
Never going to happen the premier league is the only football that matters in this country that’s why i hope we never get there championship is a great league but premier league no thank you
 

Fred

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So the gap will continue to get bigger, has England got too many professional clubs?
 

Fred

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yes... the FA should grow a pair and stop being dictated to by the PL
Do you think they would win the battle? The Premier League may only play ball if the number of clubs is reduced drastically. Should the government be involved?
 

dabigfella

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Just an idea but maybe the EFL should say that any Club relegated from the Premiere League should restart at football league Level 9 or 10.

Won't happen of course but it would be interesting to see what happened.
 

Fred

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The Premier league is so big now whatever government was in power it would be difficult to change anything fundamental.
 

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