Wage Capping

[drummindefender]

Seems like it may be happening eventually, and can only be a good thing. Would need to be introduced worldwide though imo if it is to have any effect

 

[KempsonFox]

I think it should start off at the top first, the Premier League need to show the way.I couldn't give two shits if the standard drops, I'd prefer to see a competitive league any day of the week.

 

[Matt_B]

It depends how it is done. If they set it too high it won't have any effect, too low and the players will **** off abroad and the entire league will crumble.

If I remember correctly doesn't Rugby Union have a cap but they find ways to get around it?

 

[KempsonFox]

Maybe if their was a wage cap for the club as whole it might be more useful, would probably stop the top clubs buying shitloads players just to fill their reserves.

 

[GazLCFC]

It depends how it is done. If they set it too high it won't have any effect, too low and the players will **** off abroad and the entire league will crumble.

If I remember correctly doesn't Rugby Union have a cap but they find ways to get around it?

A number of big names in RU have moved year due to the wage cap, Wilkinson etc and Cipriani is also off soon.

 

[Graz]

Sorry, but is this the story you're referring to? http://news.bbc.co.uk/sport1/hi/football/8568400.stm

Because that's not exactly a clear indication that it's happening... it's just 1 person saying he thinks it will happen because football is spiralling financially.... The bloke down the pub could give you that same opinion.


I would like to see salary/financial caps introduced though, even the playing field!

 

[Hazzman]

It depends how it is done. If they set it too high it won't have any effect, too low and the players will **** off abroad and the entire league will crumble.

If I remember correctly doesn't Rugby Union have a cap but they find ways to get around it?

They were clever in Rugby Union by offering cars and houses in addition to the wage. :icon_roll However, there has been a clamp down recently - Tigers have had to cut their cloth accordingly ie. the departure of Moody and Goode in recent years and there is now a influx of English players joining the French leagues as there are four/five heavily financially backed clubs in that division.

Rugby League, it's been used and clubs punished - it's generally worked in Super League as the unfashionable clubs like Huddersfield have built up decent sides. There are various rules which favour the lesser clubs, the clubs who have producing academies and players who stay long-term at a club.

I believe there is a salary cap in existence at L1/2 but it's largely ignored as the punishments are tiny fines.

 

[Redditch Fox]

I think that the main argument for restrictions (including wage capping) on spending is that it could protect the leagues structures and fans interests.

Portsmouth is a classic example of a club spending beyond its means - i.e. spending well beyond its reasonable expectations of revenue generation.

If relegated, Hull could be a similar basket case.

At the other end of the spectrum, the fact that Man U are massively in debt is not the same issue, providing their owners can continue to service that debt.

If we look nearer home and take the case of Leicester we see that although the attendances are very decent by past standards in the second tier - and we haven't been spectacularly splashing the cash - the books still can't be balanced without the owner chucking in a few million every year.

 

[Matt_B]

I think that the main argument for restrictions (including wage capping) on spending is that it could protect the leagues structures and fans interests.

Portsmouth is a classic example of a club spending beyond its means - i.e. spending well beyond its reasonable expectations of revenue generation.

If relegated, Hull could be a similar basket case.

At the other end of the spectrum, the fact that Man U are massively in debt is not the same issue, providing their owners can continue to service that debt.

If we look nearer home and take the case of Leicester we see that although the attendances are very decent by past standards in the second tier - and we haven't been spectacularly splashing the cash - the books still can't be balanced without the owner chucking in a few million every year.

I agree with all of that, but isn't a large chunk of our ongoing debt the repayment of the stadium? In which case a salary cap wouldn't have made any difference.

 

[jb5000]

Seems like it may be happening eventually, and can only be a good thing. Would need to be introduced worldwide though imo if it is to have any effect

This would be awful if it happened. The turnover of the biggest clubs in the Premiership is so far ahead of the rest that the league would become even less competitive.

The real solution would be to force clubs to demonstrate their financial health or be relegated, as they do in the Bundesliga, then they can pay what they want. The financial playing field should be fairly leveled by going back to having clubs share the gates of each game they play rather than taking 100% of their home gates.

 

[Matt_B]

This would be awful if it happened. The turnover of the biggest clubs in the Premiership is so far ahead of the rest that the league would become even less competitive.

The real solution would be to force clubs to demonstrate their financial health or be relegated, as they do in the Bundesliga, then they can pay what they want. The financial playing field should be fairly leveled by going back to having clubs share the gates of each game they play rather than taking 100% of their home gates.

Clubs don't take 100% of their home gates, in fact, none of that made any sense.

 

[Redditch Fox]

I agree with all of that, but isn't a large chunk of our ongoing debt the repayment of the stadium? In which case a salary cap wouldn't have made any difference.

Well I suppose any reduction in expenditure would help the repayments but I'm not advocating that a salary cap is a universal solution.

In the case of Leicester, I genuinely believe that we are a 'big' enough club to support Premier League football which could mean that the clubs finances become manageable if the whole operation on and off the field, is very well run. As it is, in the second tier, it's very difficult for Leicester to be both competitive and financially balanced.

 

[Matt_B]

I think it's getting that way for any club that has been down here more than a couple of seasons.

A lot of the problems don't seem to be all about wages, a lot seem to be general mis-management of money throughout the whole club.

Look at Man Utd, they were apparantly pretty much debt free until the Glaziers borrowed all that money against the club, just so they could buy it.

Portsmouth borrowed and spent money they had no right to, on transfers etc and were going to on a new stadium.

Cardiff have just built a new multi-million stadium and now can't pay their tax.

There are supposed to be "fit and proper person" rules but they can't be that effective or can't cover business ideals otherwise Risdale and Bates wouldn't be able to keep doing what they are to clubs.

 

[Hazzman]

The real solution would be to force clubs to demonstrate their financial health or be relegated, as they do in the Bundesliga, then they can pay what they want.

Whilst I agree with the clubs having to be open with their accounts etc. as they do in Bundesliga. It's hardly a success there as you have Borussia Dortmund, Schalke and Hertha Berlin...all suffered/ing financial problems in recent years. These are clubs with 40k plus crowds. Schalke is the worst case of the lot, within Europe they must be one of the clubs with the most severe debt and it's their asset of the AufSchalke Arena which generates loads of money as it's multi-use which keeps them ticking over. That and being sponsored by Gazprom, a gas company which has direct links to the Russian president.

 

[drummindefender]

Sorry, but is this the story you're referring to? http://news.bbc.co.uk/sport1/hi/football/8568400.stm

Because that's not exactly a clear indication that it's happening... it's just 1 person saying he thinks it will happen because football is spiralling financially.... The bloke down the pub could give you that same opinion.


I would like to see salary/financial caps introduced though, even the playing field!

That one person being the current chairman of the football league? Yes I know he's outgoing but clearly if people at the top of the game are considering it as a possibility, then its a bit more significant then the bloke down the pub...