General New EFL rule - Clubs have to make a profit

RgYellows said:
I wouldn't know without looking, but I wouldn't assume that. A club can make a profit and still not be able to compete.
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The year Bournemouth got promoted to the Premier League they lost about 38m
That is quite a few pennies for a club with similar capacity to us!
 
People have been predicting a European super league for 22-23 years now. In 2009 Arsene Wenger said it would definitely happen within 10 years. Well here we are in 2020 with no sign of it (before Corona that is) and, if Corona hadn’t happened, I’d be confident of another 20 years of people saying it will happen while the system carries on as usual.

This pandemic is still a developing situation though obviously so all bets are off... ?
 
HampshireYellow said:
People have been predicting a European super league for 22-23 years now. In 2009 Arsene Wenger said it would definitely happen within 10 years. Well here we are in 2020 with no sign of it (before Corona that is) and, if Corona hadn’t happened, I’d be confident of another 20 years of people saying it will happen while the system carries on as usual.

This pandemic is still a developing situation though obviously so all bets are off... ?
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I don't think it will happen.
 
Fred said:
I am a bit surprised how little clubs that break the rules get. If I was a football commenter I would be tempted to say 'cheating Chelsea ' instead of 'Frank's Chelsea '! Ref transfer ban.
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Our breaking of the rules in the conference doesn't count, because a fax machine was to blame!
 
RyanioBirdio said:
The Premier League absorbing the Championship to create the PL2 could well be part of re-strengthening the PL brand in the event that the big boys head off for a European Super League. They’ve had PL2 in U23 for years and the women’s game also had a 1&2 combo in terms of the Super League branding until recently. They’ve been quietly kicking bits and pieces around in the background for a good while.

The insane gap in proposed wage caps between the Championship and L1 will also lead to people eventually going, “It is financially irresponsible to relegate teams with such an enormous differential between the levels - we’re going to have to find another way.” At this stage I expect the Championship to merge with the PL, and the EFL to contain what is now L1 and L2, but possibly create a new third division. I also wouldn’t be surprised if the top EFL division stays in a national capacity as is, but if the other two are combined and regionalised, with B teams from the PL and PL2 clubs added.

It might sound positively outrageous, but I really think we are about to live in a new world. I’m very fearful of the changes that could be forced on our game in the next 2-3 years.
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I pointed this out on another thread, but the proposed wage caps will actually reduce the financial gap between League One and Championship for an average League One club like us.

The average Championship wage bill at the moment is about 15m higher than the proposed cap.

The wage cap, as proposed, is not going to be the cause of a massive gap between the two leagues - it's just another symptom.

The cause is how imbalanced the flow of money into the game is, purely going to those at the top of the pyramid.
 
tonyw said:
The cause is how imbalanced the flow of money into the game is, purely going to those at the top of the pyramid.
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Which won’t change. The people pouring the money in are arguably more incentivised to keep doing so because if there is a breakaway, or an expansion of the PL brand, or even both, the commercial possibilities grow yet again. It could be in their best interests to keep inflating the value knowing it leads to more cash.

The wage cap will punish us ‘lower downs’ because it isn’t about proportionate losses or how caps are proportionately different in this league versus that one. If a club comes down from the Championship with a wage bill 5/6 times the size of the maximum wage bill we are allowed to have, they might not be allowed to spend any more money but they will be allowed to keep what they’ve got in terms of those under contract. They can’t just pop the balloon overnight and demand people go from 15m per season to 2.5m, so they will be allowed to keep players who are contracted who want to stay. This gives an enormous advantage to the teams coming down because now we are starting from much further behind. As it stands a team can already come down with a 15m-odd budget, but plenty of teams at this level are already operating at 4, 5, 6m. Under the new rules, we won’t be as competitive versus what they are allowed to carry with them. We will be made to take two steps back from where we usually are when the race begins.

Even if clubs coming down can’t sign new players, they can afford to carry players we can’t even get near anymore. After the first 2/3 years, when all the contracts that were put in place before the caps were enforced finally expire, there will be an advantage swing to those coming down who can keep what they’ve got. All the top talent from L1 / L2 will be hoarded by Championship clubs who essentially build B teams, which then come in massively handy in the event that they’re relegated. If you play for any club in L1 you’re going to be salary capped individually by association, because there simply isn’t the wiggle room or the chance to benefit from much bigger clubs having bigger budgets. Clubs coming down can’t sign you and all the other clubs in that division are paying you the same. This gives any Championship club an enormous advantage - they can essentially spend £11m on a first team and £4m on a B team within their £15m total budget, meaning the B team alone has a budget nearly double what an entire L1 club squad is allowed to be.

In the same way that a flat rate tax percentage benefits the richest in society, a flat rate salary cap benefits the clubs higher up. It absolutely isn’t going to narrow the gap or make anything fairer.
 
Part of me wishes they would just get on and announce the Championship as PL2 because it is obvious to everyone that is the way it’s going.

Look at the clubs going up from league 1 these days, most if not all are in a relegation battle for the first year and then eventually come back down. The big clubs that do come down are the ones that are in a financial mess (Bolton, Sunderland, Ipswich, Wigan).

Let the money men have the championship while the rest of us enjoy proper football at the old school grounds and enjoy watching our own academy players playing for their home town club.
With the majority of conference clubs being full time now I’d even suggest them becoming EFL League 3.

Instead of Sky, BT become the TV channel for the football league or even Amazon and therefore clubs still get some TV revenue while the premier league still give money to the EFL but potentially more as the PL2 will get a greater tv deal put in place.
 
Fred said:
Is that

We may be losing about 4m a year without crowds and player sales against their 8.4m a year
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The benefit we have over other clubs is that this is the one and only time not taking income from bar and food sales in the ground is beneficial to us as many clubs will lose out on that income whereas we won’t.
 
Steve Gilbert said:
The benefit we have over other clubs is that this is the one and only time not taking income from bar and food sales in the ground is beneficial to us as many clubs will lose out on that income whereas we won’t.
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Precisely this. When you’re already being forced to live on rations, you’re pretty well equipped for a famine.
 
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Steve Gilbert said:
The benefit we have over other clubs is that this is the one and only time not taking income from bar and food sales in the ground is beneficial to us as many clubs will lose out on that income whereas we won’t.
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Marked Ox said:
Although the sale of Rob Dickie may offset some of that.
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That's what I was trying to say, but who knows our financial position during this time. I suppose being in the playoffs helped?
 
Fred said:
That's what I was trying to say, but who knows our financial position during this time. I suppose being in the playoffs helped?
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I doubt we'd have got much income other than maybe a little extra from TV and the sale of the cardboard cutouts which would offset some of the additional costs.
 
Marked Ox said:
I doubt we'd have got much income other than maybe a little extra from TV and the sale of the cardboard cutouts which would offset some of the additional costs.
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I suppose the 'testing' was expensive but do you get money from EFL depending where you finish in the table?
 
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