Salary cap confirmed

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warksox said:
Other news outlets now reporting the L1 vote as 16 in favour of the cap, 1 abstention, 7 against (Portsmouth, Oxford, Ipswich, Sunderland, Hull, Charlton and Doncaster)
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Strange, because Plymouth's CEO recently came out against the cap:
www.plymouthherald.co.uk

Argyle against new salary cap proposal for EFL next season

Pilgrims' chief executive Andrew Parkinson wants to see stricter enforcement of the current regulations
www.plymouthherald.co.uk www.plymouthherald.co.uk

I had them down in the 'No' column. Wonder what changed their minds?
 
OUFCGav said:
The issue is that the 'leaders' of the EFL have no real power, the power is with the chairmen of the clubs. It is a members club not a led organisation. The central EFL proposed tighter regulation, but they cannot impose it, the clubs have to vote for it. There are too many chairman who are not really interested in the long term stability of wider football, they are self interested.
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A strong 'leader' would actually lead... EFL admin seem to only want to appease PL for some strange reason
 
m said:
Re fears of players heading to championship clubs to sit in the reserves:

Worth remembering that if they too vote this through there will be a finite number of squad places up for grabs.
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On top of that - remember that the average Championship wage bill is 34m at the moment.

If they vote through an 18m cap, then the vast majority of Championship sides are going to have to be dramatically trimming their wage bills. They're not going to have a whole lot of space to go after lower league players for some years yet (if the Championship reject the cap - then everything is truly ****ed for the lower leagues. Forget about a 7x difference in wage bills - try 14x).

Honestly, I suspect this is why Cam Bran just signed his new contract with us. And Matty Taylor. Because if they didn't sign a contract with the wage they wanted prior to the cap being introduced, they were going to likely have trouble finding a similar sort of longer term deal with anyone after it. One small way that this chaos has worked in our favor.
 
captainox said:
www.portsmouth.co.uk

Mark Catlin reveals dramatic late event which led to wage cap for Pompey, Sunderland, Ipswich and League One

Mark Catlin expressed his disappointment as the EFL wage cap was voted through by the narrowest of margins.
www.portsmouth.co.uk www.portsmouth.co.uk

Needed 66% to get passed and got bang on 66%.

16 for
7 against
1 abstained
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So the team that abstained basically got it through then. How can you not have an opinion on it? Any idea who it was?

And shocked at Peterborough. Some sort of warped idea at revenge on Sunderland and Ipswich, who appear to be the big losers on this?
 
captainox said:
www.portsmouth.co.uk

Mark Catlin reveals dramatic late event which led to wage cap for Pompey, Sunderland, Ipswich and League One

Mark Catlin expressed his disappointment as the EFL wage cap was voted through by the narrowest of margins.
www.portsmouth.co.uk www.portsmouth.co.uk

Needed 66% to get passed and got bang on 66%.

16 for
7 against
1 abstained
Click to expand...
" Pompey chief executive revealed a late change of heart by one of the League One members was the deciding factor "
Must've been Plymouth who changed their mind
 
SteMerritt said:
So the team that abstained basically got it through then. How can you not have an opinion on it? Any idea who it was?

And shocked at Peterborough. Some sort of warped idea at revenge on Sunderland and Ipswich, who appear to be the big losers on this?
Click to expand...
Peterborough were always in favour because according to MacAnthony they 'have lots of under 21's'.
A bit short-term you'd think, given the ageing process.
www.peterboroughtoday.co.uk

Peterborough United set to benefit from salary cap rule, but rival clubs are set to weaken its impact

Peterborough United co-owner Darragh MacAnthony believes a salary cap would benefit his team in the coming seasons.
www.peterboroughtoday.co.uk www.peterboroughtoday.co.uk
 
Marked Ox said:
- If they are over the cap then they wouldn't be able to sign players until offloading existing ones. I'd be surprised if any teams are currently over with existing contracts (those above the average I think) classed as the average L1 wage.

- Players contracts in relegated sides are considered to be at the L1 average level for Cap purposes.

- Haven't a clue.
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I think the answer to the third question is that a proportional cap has not just been discussed - it's in theory been in place for the past fifteen years.
Under the Salary Cost Management Protocol, League One & League Two clubs are supposed to keep their wage bills to 60% of their revenues.

The problem is that the rule was written with a million loopholes, and it has never been properly enforced.
 
Just 11 months ago, the EFL was being critisised over the plight of Bury.

Now, the clubs seek to reduce the risk of this occuring again, and there is uproar and critisism of the EFL for the decision made by member clubs.

Success should be about performance on the pitch, not the wealth - and the ability to accumulate debt - of the owners.

The salaries of footballers have been insanely high for decades - haven't the events of the post few months demonstrated how vital those in lowly paid jobs are, whilst life can continue without many of those, like footballers, in extremely well paid occupations?

It's unlikely that clubs in the Premier League and Championship will now increase their squad sizes , as some here have suggested.

Clubs around Europe will also be cutting costs, so I don't expect to see a significant increase of players following Roofe, etc. to the continent.

2020 has changed global finances. Don't expect much to remain as it was in 2019.

Let's hope that clubs like ours begin to reduce debt levels, and reduce the risk of insolvency.
 
tonyw said:
I think the answer to the third question is that a proportional cap has not just been discussed - it's in theory been in place for the past fifteen years.
Under the Salary Cost Management Protocol, League One & League Two clubs are supposed to keep their wage bills to 60% of their revenues.

The problem is that the rule was written with a million loopholes, and it has never been properly enforced.
Click to expand...
ain't EFL administrators great? (not) :rolleyes:
 
Sarge said:
A strong 'leader' would actually lead... EFL admin seem to only want to appease PL for some strange reason
Click to expand...
but again, they have no central power, they are there to do the bidding of the majority of the EFL clubs. They can come up with an FFP plan that runs properly and it will just get voted down, they have no power to impose it (unless the majority of the clubs vote for them to have executive power, which isn't going to happen).
I'm fairly surprised this got voted through TBH, but maybe the chance for some chairmen to kick the bigger clubs was too good to miss.

on a separate note, I do love that the EFL don't own the registration for https://efl.co.uk/ - love the page that comes up (is SFW)!
 
Ian said:
Just 11 months ago, the EFL was being critisised over the plight of Bury.

Now, the clubs seek to reduce the risk of this occuring again, and there is uproar and critisism of the EFL for the decision made by member clubs.

Success should be about performance on the pitch, not the wealth - and the ability to accumulate debt - of the owners.

The salaries of footballers have been insanely high for decades - haven't the events of the post few months demonstrated how vital those in lowly paid jobs are, whilst life can continue without many of those, like footballers, in extremely well paid occupations?

It's unlikely that clubs in the Premier League and Championship will now increase their squad sizes , as some here have suggested.

Clubs around Europe will also be cutting costs, so I don't expect to see a significant increase of players following Roofe, etc. to the continent.

2020 has changed global finances. Don't expect much to remain as it was in 2019.

Let's hope that clubs like ours begin to reduce debt levels, and reduce the risk of insolvency.
Click to expand...
I suppose the difficulty is that is has always been about wealth to an extent. What they need to control is debt.
 
it is interesting that the penalty for exceeding it up to 5% is a financial penalty (" a financial penalty would be payable for every £1 in excess. ").

Be good to know what the sanctions are beyond that 5%, it just says " Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission.....Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission. "
 
OUFCGav said:
it is interesting that the penalty for exceeding it up to 5% is a financial penalty (" a financial penalty would be payable for every £1 in excess. ").

Be good to know what the sanctions are beyond that 5%, it just says " Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission.....Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission. "
Click to expand...

If Bolton nothing, if somebody else points deduction.
 
Ian said:
Just 11 months ago, the EFL was being critisised over the plight of Bury.

Now, the clubs seek to reduce the risk of this occuring again, and there is uproar and critisism of the EFL for the decision made by member clubs.

Success should be about performance on the pitch, not the wealth - and the ability to accumulate debt - of the owners.

The salaries of footballers have been insanely high for decades - haven't the events of the post few months demonstrated how vital those in lowly paid jobs are, whilst life can continue without many of those, like footballers, in extremely well paid occupations?

It's unlikely that clubs in the Premier League and Championship will now increase their squad sizes , as some here have suggested.

Clubs around Europe will also be cutting costs, so I don't expect to see a significant increase of players following Roofe, etc. to the continent.

2020 has changed global finances. Don't expect much to remain as it was in 2019.

Let's hope that clubs like ours begin to reduce debt levels, and reduce the risk of insolvency.
Click to expand...
As long as they do the same for every league to maintain competitiveness throughout, it should be fine.

So Premier League, Champions League, UEFA. Let's hope they also reduce the £50 million+ transfer fees and £100k+ wages, and we should all be fine.
 
So whilst I think that it's madness that the salary cap is being brought in piecemeal (and still may not be brought in for the Championship - we'll see), and I think that the numbers are too low and basically just punitive for clubs like Sunderland......

.....at the same time, I don't actually think that it's necessarily going to be a terrible thing for OUFC. For multiple reasons:

1) We believe that we currently have a wage bill which is somewhere around the upper-middle of the division. It's a lot smaller than the likes of Sunderland, a lot bigger than the likes of Accrington but in general we don't have a big competitive advantage over the 'average' team in League One. Our competitiveness in this division is likely to change little

2) If KR does the business and we get promoted, then it's been pointed out that we will be at roughly a 7x disadvantage compared to Championship teams under the wage cap. Obviously, we'll have to recruit quickly to compete. But actually, crazily that's less of a disadvantage than we're at now, when the average Championship team is spending 34m on wages. A Championship wage cap (assuming it happens) would actually increase our competitiveness in that division.

3) A lot has been made of the fact that relegated clubs coming down from the Championship are going to be at a big advantage, but are they really? They may be able to spend more money than the League One clubs, but that money will be being spent on overpaid players that got them relegated in the first place. For new recruitment, they'll be playing by the same rules as everyone else.

4) The wage cap is going to depress player wages, and so we may stop losing multiple millions every season.


As I say, I'm not saying that I agree with how this cap is being implemented, and I don't think it's broadly fair. But I don't think it's the same horrible disaster for us that others seem to (but it is a horrible disaster for a club like Sunderland, for example).
 
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