Living within our means (1 Viewer)

Bennets Afro · Jun 23, 2011

How is the financial fair play gonna work?

We can only spend profit made??? If so, then some severe cost cutting is gonna happen not just to us but to most clubs. Parachute payments will give an unfair advantage to relegated teams and the richer clubs will get richer and the poorer clubs will struggle. We are never going to be able to compete!!!!

Would you be able to accept investment from outside investors as this isn't profit made???

I expect a few clubs to go under in the next few years

TheRoyalScam · Jun 24, 2011

I think you're only allowed to spend a certain percentage of your turnover on wages, not yourprofit - 90% or more clubs wouldn't have a squad if what you said was true.

Nonleagueherewecome · Jun 24, 2011

It's gonna be a whole new ballgame alright. I think the idea is that it brings more financial security rather than less. You can't spend what you haven't got. Since we haven't got anything (and don't spend it), it shouldn't make too much difference to us!

If anything, the likes of Cardiff will no longer be able to get away with the sort of thing they've done in the past few years-spending millions they simply can't afford in a gamble of reaching the Premiership. It failed, and look at the mess they're in now. See Preston for last years model, Charlton, Bradford, etc.

If it means the averages wages paid to mediocre championship footballers comes down a bit, I'm all for it. A lot of them are out of touch with reality.

Not Keogh though-he came into my workplace today to do something very mundane and boring and was a top bloke all round. But then that doesn't surprise me-as someone from the lower divisions he's in touch with reality and probably not paid that much compared to many at this level. I'd rather have 11 Keogh's busting a gut for the club-and being consummate professionals off the pitch-than one King on megabucks who doesn't have a clue about reality for the average fan.

TheRoyalScam · Jun 24, 2011

Nonleagueherewecome said:
It's gonna be a whole new ballgame alright. I think the idea is that it brings more financial security rather than less. You can't spend what you haven't got. Since we haven't got anything (and don't spend it), it shouldn't make too much difference to us!

If anything, the likes of Cardiff will no longer be able to get away with the sort of thing they've done in the past few years-spending millions they simply can't afford in a gamble of reaching the Premiership. It failed, and look at the mess they're in now. See Preston for last years model, Charlton, Bradford, etc.

If it means the averages wages paid to mediocre championship footballers comes down a bit, I'm all for it. A lot of them are out of touch with reality.

Not Keogh though-he came into my workplace today to do something very mundane and boring and was a top bloke all round. But then that doesn't surprise me-as someone from the lower divisions he's in touch with reality and probably not paid that much compared to many at this level. I'd rather have 11 Keogh's busting a gut for the club-and being consummate professionals off the pitch-than one King on megabucks who doesn't have a clue about reality for the average fan.

Keogh was my player of the season - played every minute of every league match and successfully made the step up to the Championship. I was also swayed by the fact that he's a decent human being, and not a woman-beating recidivist low-life criminal thug.

egastap · Jun 24, 2011

TheRoyalScam said:
Keogh was my player of the season - played every minute of every league match and successfully made the step up to the Championship. I was also swayed by the fact that he's a decent human being, and not a woman-beating recidivist low-life criminal thug.

Recidivist....I like that RoyalScam. Could be a 'word for the day'.

Bennets Afro · Jun 24, 2011

So if it's 90% of your turnover, you can still get in debt then I presume? And can you still spend outside investment if it happened?

Hcut PUSB · Jun 24, 2011

Bennets Afro said:
So if it's 90% of your turnover, you can still get in debt then I presume? And can you still spend outside investment if it happened?

There was talk of a wage cap as well if I remember rightly ala league two, I believe that is still being dicussed with by the FA. It will def stop the high wage demands and allow clubs to play on a more even footing as there will be more cash to invest in the acadmies and development from the bottom up should become a reality rather that the utopian dream.

Ernie Machin · Jun 24, 2011

The Premier League clubs won't sign up for it, but it's a start. Manchester City spent 107% of their income on wages for 2009-2010 (probably higher this year), completely ridiculous. The bubble has burst in the lower leagues, this is the only way I can see the game surviving long term. Had this happened a few years ago, the Sky Blues might not be in the mess we are now.

oldskyblue58 · Jun 24, 2011

blimey something we beat Man City on .........

Our staff costs to 31/05/10 were £10.3m and income was £9.3m ........... very nearly 111% of income ! year before was 118%

no wonder we are in a mess

Covstu · Jun 24, 2011

This can be good but again could also kill lower clubs where their turnovers are vertually non exisitant, if it is a set ^percentage of that turnover they would have no money to spend. I think there should be a maximum cap on the amount you can pay because football is spiralling out of control and clubs like barca, man city and chelsea and not helping this and are a law upon themselves.

rob9872 · Jun 24, 2011

The problem imo with wage caps is that everyone earns the maximum and there is no reward for greatness, so potentially some have nothing to aspire to and performances dip.

I have no problem with Messi earning £250k p/w but when that means that some players in the Championship are on upwards of £30k the balance is wrong. Difficult to change now with so much money in the game, but it could be carnage if it dries up and it surely must at some point.

Bennets Afro · Jun 24, 2011

I quite thinks it's a good idea too. Need to start getting some additional income, so we stand even a small chance of promotion unless we fluke it, but I can't see that as all saleable assists get sold each year

Bennets Afro · Jun 24, 2011

Hopefully it will put a lot of emphasis on the academy. Developing and bring through good young talent

hackneyfox · Jun 24, 2011

Bennets Afro said:
So if it's 90% of your turnover, you can still get in debt then I presume? And can you still spend outside investment if it happened?

He didn't say 90% of turnover.

I believe the figure is 60% of turnover.

The relegated clubs from the premier will storm this division every year.

CovLis86 · Jun 24, 2011

I dont think i fully understand the ins and outs of this plan.
But something needs to be done drastically to the state of English football, because its onyl going to get worse and worse over time, and it infuriates me to watch teams like Cardiff get away with what they do, and yet by all accounts we are in a worse financial mess than them, just because they class their debt in a different way. Its completely unfair, and same goes to the premiership - If Manchester United are in hundreds of millions pounds of debt, how on earth have they been allowed to spend about 40million in the last 2 weeks on 2 players?!

oldskyblue58 · Jun 24, 2011

Championship clubs are set to introduce their own financial fair play system where teams can only spend what they earn.

The Football League chairman Greg Clarke has revealed that the Championship clubs have voted in principle to mirror the UEFA system that will affect clubs in European competition from 2014.
The system will be proposed at the Football League’s AGM in Cyprus today, where it will also be put forward that League One clubs move towards the introduction of the salary cap currently in force in League Two, where teams can spend a maximum of 60 per cent of their turnover on wages.
The fair play rule would mean Coventry City would have to slash costs – almost certainly including their playing budget – as they have been losing half a million pounds a month.

It could create a problem for clubs trying to compete against the spending power of sides relegated from the Premier League with massive parachute payments – in the way Birmingham City appear to have outbid the Sky Blues for Marlon King’s services.

Clarke said: “The Championship clubs voted to look at financial fair play and in principle decided that was the road they wanted to go down.

“I think it’s essential, and the energy to solve this is coming from the clubs themselves.
“It’s a perfect storm in that a lot of things have come together to make this happen, including of course the level of debt in the – £700 million in the Football League, most of that in the Championship – and big losses being racked up by the clubs

Clarke said if the proposal was passed the next six months would be spent on developing a system and ensuring it was fair and transparent.
He admitted that there had been some opposition to the move but a strong majority had been in favour

It is understood that Leeds chairman Ken Bates is among those backing the system.
“These things are never unanimous and a couple of the clubs would rather not have constraints on how much money they can spend,” added Clarke.
“I would hope this could lead to a return to the days when local communities could own the clubs rather than rely on offshore benefactors.
“There is also a proposal for League One clubs to shadow the League Two system in the coming season with a view to their adopting it the season afterwards.”
The proposed spending constraints also reflect concern over income – the League’s new £195m domestic TV deal is a 26 per cent drop on the previous one.
Clarke added: “Football finances are difficult and the UK television deal is less than the last one and there are no signs that the economy is going to recover quickly.”
Parachute payments to clubs relegated from the Premier League have gone up and clubs can earn up to a maximum of £48m over four years.
There have been fears that could have a distorting effect and lead to yo-yo clubs but Clarke said there had been little evidence of that so far.
He said: “Largely the parachute payments are absorbed by the club paying their debts and players.
"Last year three clubs came down and did not make the play-offs. This year we have two financially-distressed clubs relegated in West Ham and Birmingham

As reported in CT and on BBC etc

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