Salary cap

basilrobbie said:
Their latest accounts are hard for a layman like me follow. It looks as though they may have written off 20m in loans (unless I have misunderstood it, which is entirely possible). But I'm still not sure they are in a good position.
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My understanding is that was some kind of shenanigans where he wrote the debt off against the cost of the purchase. I don't quite understand how or what but it seems he has significantly raised the value of the club on the market, essentially at no cost to himself and thus he'll walk away with a big prize when the club is sold.
 
A well run Blackpool FC over the next few years will make considerably more money than the last set of accounts suggests. Ticket Revenue, Commercial Revenue, Merchandising, Sponsorship all likely to increase. The income from the Hotel, Restaurant and conferencing facilities likely to increase, similarly so for the Spa and Gym. Then take out the money pissed up the wall by the Oystons on fleets of cars for themselves, loans to themselves, Bison 🤷‍♂️ and countless other expenses that almost certainly weren’t justified or necessarily accurate (allegedly) then our income only increases.
Naturally this is in ‘normal’ circumstances and Covid will have a big impact on all of this but these new rules aren’t Covid specific. They need to work fairly when we return to wherever the new normal looks like.
 
I can see this leading to a breakaway Premier League B with entry not entirely being decided by League position but also by "invitation" with the main factors being fan base/stadium capacity and financial resources.
 
BlackpoolsFinest said:
Indeed. But that is because he has been massively over spending despite laughable attendances.
When the cap comes in to play, the fact he has to hand out tickets to anyone remotely interested just so they can make it towards a full house against their local rivals (for example) isn't going to matter anymore, because he can now only pay out the same amount as us (instead of using Sunderland as an example).
That can't be right. It should have been a % of turnover.
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I don't disagree - but I suppose we've had forms of FFP for ages and all we see is clubs doing mad stuff like selling grounds to falsely add to 'turnover' - it's here and on the upside clubs can't 'buy success' - I hate that. You have to have your shit in order in a footballing sense and can't simply buy the best players and mask the mediocrity of your manager or coaching.

I think in the immediate future this should make it more likely that clubs at bottom end can a) survive and b) possibly prosper on basis of good management which objectively makes the league more interesting.

As an aside, I wonder if this will make managers more of a big commodity in the market? I don't think the cap applies to non playing staff does it?

If an owner can't buy success in the form of players, it would make sense to get the best coaching team you possibly could in place. We've seen managers disempowered for years and I wonder if we'll see the return of them as 'the most important person in the club' as a result.

I'd say ultimately to make FFP work would be to have every single club with an independent board member and having to undergo constant scrutiny with a % of turnover (limited to certain income streams to avoid shenanigans that puts club at risk) - there's just so many clubs who have played fast and loose with it to date.
 
LA1 Seasider said:
A well run Blackpool FC over the next few years will make considerably more money than the last set of accounts suggests. Ticket Revenue, Commercial Revenue, Merchandising, Sponsorship all likely to increase. The income from the Hotel, Restaurant and conferencing facilities likely to increase, similarly so for the Spa and Gym. Then take out the money pissed up the wall by the Oystons on fleets of cars for themselves, loans to themselves, Bison 🤷‍♂️ and countless other expenses that almost certainly weren’t justified or necessarily accurate (allegedly) then our income only increases.
Naturally this is in ‘normal’ circumstances and Covid will have a big impact on all of this but these new rules aren’t Covid specific. They need to work fairly when we return to wherever the new normal looks like.
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No,quite, but I think the precise level of the cap IS covid specific.
 
Seainsea said:
I can see this leading to a breakaway Premier League B with entry not entirely being decided by League position but also by "invitation" with the main factors being fan base/stadium capacity and financial resources.
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there is every possibility. This cap is a wolf in sheep’s clothing for the lower leagues.
 
:-( On the upside, that's Fleetwood out...

I'm not totally convinced of the 'breakaway' argument. What do the second tier clubs gain? Is there a significant market for their TV rights as a separate entity? ITV digital would suggest not. They already get quite a lot of the pie from the TV deals, both in terms of cost per game and solidarity payments.

The market value of the EPL isn't really in sides like Norwich and Derby, it's in the clubs like Chelsea, Utd, City etc - I'm not sure why the EPL would want a second tier particularly or would welcome sharing additional revenue with a notional EPL B. The viewing figures for non 'big 6' Premier league games on Sky and games other than the absolute top tier championship sides are poor and even poorer globally.

If they're not getting more money, why would they do it? (other than to insulate themselves from relegation - and I'm not sure that's entirely enough of an argument to do it because you'd lose a further set of value for the product in the TV marketplace as the league would lose 50% of it's jeopardy and drama)

I think I'm saying, good luck to Sunderland etc if they go that way, I just can't see it being paved with riches. Those already in the championship have no particular impetus to do it and those outside it are very few in number. It's not I don't think they'd want to, it's just I don't see why the EPL would welcome it.

I could be missing something!

Seainsea said:
I can see this leading to a breakaway Premier League B with entry not entirely being decided by League position but also by "invitation" with the main factors being fan base/stadium capacity and financial resources.
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I have sent this to the fans forum question to BST.

Now that Leagues 1 and 2 have voted for a salary cap, have they put themselves virtually out of reach from getting promotion to The Championship?
This is because the relegated clubs from The Championship will be given time to adjust to the cap, probably meaning that if Blackpool try to sign a player wanted, for example, by Hull, they can offer the player much more than the maximum wage that we're allowed to. As it stood, the better players left clubs relegated to League1, jumped ship, but there's no need for them to now. Ultimately, it's almost certain that the 3 relegated clubs from The Championship will go straight back up. As the contracts for players already signed on come to an end the gulf between us and The Championship will grow even more.
 
It's not as simple as that though, is it? If it was just about that, we'd have promoted Sunderland, Pompey and Bolton last season - and maybe relegated Wycombe and Fleetwood.

Looking at the three clubs who have come down :

Hull : in absolute disarray, owners at war with the supporters, probably the worst side in the EFL on current form (I'm guessing)

Wigan : very unlucky, all things being equal would be hot favourites, but in administration, struggling to come out of it and may have a firesale to come

Charlton : another club with massive off the field problems, I think they also have a very young squad. Could be anything.

Context counts for a lot. It isn't just about money.
 
Henshman said:
I have sent this to the fans forum question to BST.

Now that Leagues 1 and 2 have voted for a salary cap, have they put themselves virtually out of reach from getting promotion to The Championship?
This is because the relegated clubs from The Championship will be given time to adjust to the cap, probably meaning that if Blackpool try to sign a player wanted, for example, by Hull, they can offer the player much more than the maximum wage that we're allowed to. As it stood, the better players left clubs relegated to League1, jumped ship, but there's no need for them to now. Ultimately, it's almost certain that the 3 relegated clubs from The Championship will go straight back up. As the contracts for players already signed on come to an end the gulf between us and The Championship will grow even more.
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No, they can’t. The exemption applies only to players already under contract
 
Henshman said:
I have sent this to the fans forum question to BST.

Now that Leagues 1 and 2 have voted for a salary cap, have they put themselves virtually out of reach from getting promotion to The Championship?
This is because the relegated clubs from The Championship will be given time to adjust to the cap, probably meaning that if Blackpool try to sign a player wanted, for example, by Hull, they can offer the player much more than the maximum wage that we're allowed to. As it stood, the better players left clubs relegated to League1, jumped ship, but there's no need for them to now. Ultimately, it's almost certain that the 3 relegated clubs from The Championship will go straight back up. As the contracts for players already signed on come to an end the gulf between us and The Championship will grow even more.
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No, I don't think hull can offer a larger wage can they? It's existing contracts that they have an adjustment for.

It means that they might be paying a player 10k a week under an existing contract with a year or more to run and not have to adjust his wage down as he'll be treated as ' divisional average' but they can't go and buy new players on higher wages.

It's certainly an advantage but not as I understand it, an advantage on negotiating new contracts.

That's my understanding anyway.
 
My understanding is this:

Any player who is already under contract is counted as either: the sum they earn or 1/20 of the salary cap

So if you come down and have 18 players in contract, all of whom earn more than 1/20 of the salary cap, the u have 2/20 of the salary cap to spend. Probably no more than most L1 clubs have ...

... and if u have players whose contracts need renewing, that also has to be within the cap ...
 
Pretty sure I heard the average wage for a L2 player will still be £58k - nice work if you can get it!
 
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