Salary cap

basilrobbie

Well-known member
Here is the EFL statement.

Main points for me :

1. Agent's fees are in, which means that they will probably take a hit - not before time

2. Loans have an impact on spend so will need managing carefully

3. There will be in-season monitoring to identify problems early

 

td53

Well-known member
I'm glad this went through. It's absolutely needed and whilst I don't like measures that apply to the bottom two leagues alone, I'm glad the clubs see the need to control finances. Covid has only exacerbated what already is an issue.

Statement is a bit bare though.

What's the starting date? Is it this season? (I think I know this, there's something about this year being a grace period and player signed before X not counting I think)

What happens if your salary is significantly over budget? What are the punishments? Are they incremental? Are they financial or points based? (Read it again, it says clearly it's financial)

It's very 'EFL' to make it up as they go along regarding sanctions and I'd like to know a bit more about how it's enforced - it would seem to be really important to lay out a very clear set of regulations that can be consistently followed.

How will the EFL know? Will it be retrospective (i.e. when accounts published, which is all a bit ad hoc) or will there be auditing of clubs at various junctures?

Like the fact agents fees included.
 

tangysider

Well-known member
It puts the inflated wages in the Premier league in perspective, it would be interesting to see how many Premier league players were paid more than 2.5 million gbp. per annum
 

td53

Well-known member
Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission, although the EFL will monitor the Cap on a real-time basis throughout the season as is the current position with SCMP measures across the two divisions. Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission.
I'd really like a link there to say what the 'sanction guidelines are' - so that we don't get the usual 'we've been treated differently than them' issues around problem clubs.
 

TKL_Seasider

Well-known member
Hmm

Hope it works betted than the salary controls or the owners and directors test

Note there’s no comment on squad size limits or exemptions

The world will definitely not be a worse place if the average League One player is ‘only’ earning £75k a year, but it seems unimaginative, overly blunt and open to challenge: firstly by the PFA, later by clubs who can pay the best loophole-hunting lawyers
 

Goforgoal

Well-known member
I'm glad this went through. It's absolutely needed and whilst I don't like measures that apply to the bottom two leagues alone, I'm glad the clubs see the need to control finances. Covid has only exacerbated what already is an issue.

Statement is a bit bare though.

What's the starting date? Is it this season? (I think I know this, there's something about this year being a grace period and player signed before X not counting I think)

What happens if your salary is significantly over budget? What are the punishments? Are they incremental? Are they financial or points based? (Read it again, it says clearly it's financial)

It's very 'EFL' to make it up as they go along regarding sanctions and I'd like to know a bit more about how it's enforced - it would seem to be really important to lay out a very clear set of regulations that can be consistently followed.

How will the EFL know? Will it be retrospective (i.e. when accounts published, which is all a bit ad hoc) or will there be auditing of clubs at various junctures?

Like the fact agents fees included.
It takes effect immediately.
 

td53

Well-known member
It puts the inflated wages in the Premier league in perspective, it would be interesting to see how many Premier league players were paid more than 2.5 million gbp. per annum
Most of them are. For example, Bournemouth's average wage is around £3m per player. Even Burnley is in excess of 1.5m per player and they're always around 17th highest spenders (given that teams that come up are usually bottom 3)
 

Chopper_5

Well-known member
Are there exemptions for the players already in contract? Realistically Sunderland would need to offload most of their squad but how can they do that if they're in contract?
Any player under contract up to and including today is treated as the average divisional wage for the length of contract. Same will apply going forward to relegated teams too.

Edit to add: this is from the club site.
 

LA1 Seasider

Well-known member
I think there is a degree of wiggle room available

' An ‘overrun’ concept is also included if a Club’s total squad salary payments exceed the Cap by up to 5%, whereby dependent on the percentage level of the overrun, a financial penalty would be payable for every £1 in excess'

Does this mean we can actually spend £2,625,000.00 on wages and then the £125,000 (over the £2.5 million) will be subject to a penalty - essentially a tax on the clubs paying above the cap.

I imagine that 5% will eventually be extended and I also note there is no indication of points penalties etc for those who breach the 5% and instead just that they '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'.

So by my reckoning those paying say £3 or even £4 million wont necessarily have points docked, but instead are likely to face financial penalties...

Should therefore give the 'big' or ambitious clubs chance to flex their financial muscles and that doing so will result in the EFL (and hopefully the smaller clubs (financially)) essentially receiving further reimbursement
 

Athers

Well-known member
It’s good, but it also means the gap between the bottom 2 divisions and the championship will grow even bigger. I’d like it in all 4 divisions, but know there no chance of it happening in the premier league and little chance in the championship
 

Chopper_5

Well-known member
Ah! Thankyou. Appreciated.
And it is capped as the divisional average, not treated as, got that bit wrong. So if it's already below it then i assume it would stay that way?

"Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire."
 

td53

Well-known member
One point that might seem pedantic but how can there be 'an agreed average?' - I'd assume an average is all the wages add up then divided by the number of players.

Not something you debate and agree.

I think we can also give up on signing anyone who was in contract before this went through....
 

LA1 Seasider

Well-known member
It’s good, but it also means the gap between the bottom 2 divisions and the championship will grow even bigger. I’d like it in all 4 divisions, but know there no chance of it happening in the premier league and little chance in the championship
I think it makes getting promotion next season or the one afterwards incredibly important if we want any chance of competing on our return to the Championship. It also makes the fall from the Championship a hell of a trapdoor for those who do get relegated - should Stoke have dropped this season then their huge wages would have been crippling under these new proposals. I can see the Championship clubs going into a bit of a spending frenzy to try avoid relegation come January - which could be a disaster waiting to happen whilst those who are relegated will have fire sales.
 
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