How can this every happen in practice though? It can’t. Unless salary caps are brought it.
You can say you absolutely cannot spend more than you earn...based on last years earnings. Well when people get relegated they can still get themselves in a mess can’t they. You could chop their expenditure allowance when they get relegated...but then it’s a downward spiral isn’t it? And muppets on here are constantly screaming for the owners to “invest”.
I just don’t know what you think the EFL can or should do? What the fuck is a fit and proper owners test really? They aren’t psychic it’s not minority report
I've thought about this before and it can be done without salary capping. My proposal would work better with squad caps, but it's not entirely necessary.
You take the fixed/guaranteed revenue from TV/sponsors etc and every member of the squad gets a 'basic wage' from the FPP percentage of that (if they want they can do a 1st team/reserve/youth like pay grades in 'normal' jobs).
This is then supplemented by a season end 'bonus' based on the variable revenues like matchday revenues and ticket sales. This can then be divided up based on minutes played. (If a player is injured there could be a problem, but which could be negated somewhat by saying any signed off by the physio/doctor as injured gets 2x basic wage or whatever, like sick pay).
This system has so many advantages:
It prevents a club spending beyond their means (money for the end of season bonus would be 'ringfenced')
It makes a league more competitive as most players will be on roughly the same basic wage, but it'd stop decent players being hoovered up by the big teams to sit on the bench as they'd earn much less than if they were a first choice elsewhere, so the talent is spread out more evenly.
The good players that play the most would still be the top earners so no problem of the top players not earning more than lesser squad members
No limit on salaries other than what income the club can generate.
Mutual incentive for players and fans.
-Fans can't complain if players don't join as they're partially directly responsible for the pay the club can offer. More fans turn up = more revenue = higher wages that can be paid = more attractive club to better players = improved team.
-Players play well and team wins = more fans want to come = more revenue = players get paid more.
Big teams can't complain because as they raise more revenue in sponsors/advertising/prize money etc they can still pay more than other clubs. If they lose that advantage it's down to their own mismanagement.