How Would YOU Design Football Finance Law?

[yankblue]

For starters I would fine Liverpool and United into oblivion. Cause fuck'em, that's why

 

[Giovinco]

May not be a popular opinion but I would just leave it down to market forces and the free market.

 

[BlueAnorak]

The only one that would work is a wage cap like in NFL.
The trouble is all the big clubs, mostly red cartel and big London clubs, would object because of their sense of entitlement.
That would mean any Joe could rock up and buy a team and pump in a shedload of cash and complete.
That wouldn't be fair apparantly.

 

[chris85mcfc]

Simple. - no debt

But every business has debt, and will use it to their advantage.

There's nothing wrong with a certain amount of debt as long as the interest cover is over a certain amount.

You could have covenants in place to restrict the amount of debt, but to assume no debt is just fanciful.

 

[mexico1970]

The only one that would work is a wage cap like in NFL.
The trouble is all the big clubs, mostly red cartel and big London clubs, would object because of their sense of entitlement.

I don't believe they care too much about winning, as long as that cash keeps rolling they'll run with it.

Wage caps would mean they would keep more of the money that rolls in.

 

[CC1]

But every business has debt, and will use it to their advantage.

There's nothing wrong with a certain amount of debt as long as the interest cover is over a certain amount.

Can’t go down that road with PL. They’re too happy to be flexible only when it suits. Rules have to be black & white moving forward. Where do you draw the line?

 

[M23 Citizen]

At the other end of the scale, I don’t think clubs should have points deductions or fines for going into administration (it’s the fans, players and lowest paid employees who are punished most there). It should be the owners themselves that are punished as individuals or the companies that they own shares through.

 

[bennyboy]

Go for the rags big time over their debt.

 

[BrianW]

There is a limit on debt and a rolling requirement to bring it down to an agreed-upon level within five years.

There are no restrictions on owner investment as long as it is in equity, not loans.

 

[Kompany Car]

Agree a maximum spending threshold which if exceeded you pay a 50% tax for any spending above it, the proceeds of which are redistributed to everyone outside the top 6.

For newly promoted clubs no limit for the first 2 yrs.

It doesn’t stop investment but does penalise excessive spending. It’s also redistributive to clubs with lower incomes, levelling the playing field. It gets rid of some of the “old money clubs” advantage.