New PL financial controls | Clubs agree squad spending cap 'in principle'

[The Stockport Iniesta]

We will have to see what the cap is, but at first glance a 4.5x cap would mean City would have to cut spending, while virtually all the other clubs can increase their spending. A 5x cap would mean City basically having to stand still financially but virtually every other club can increase spending even further?

Also how are we supposed to factor bonus payments into the equation if we are successful? Large bonus payments could take us over the cap, so we would need to leave a large amount of wiggle room, or cut bonus payments for success substantially in future contracts?

 

[The Stockport Iniesta]

United voted against it as well, applying the same rationale what does that tell you?

It tells me it affects clubs with the largest incomes negatively.

 

[waspish]

Do you think the club was right to increase season ticket prices every year?

If not, then you are, like me, living in a world where not everything the board of MCFC does is right purely because they do it.

So why would you assume the rules must be wrong because City voted against them?

Form your own opinion on something, don’t just blindly assume half a dozen people you’ve probably never met are making the right choices by default because they’re wearing City lapel pin.

Because the evidence of the continual changes to the rules since they came in in 2013/14 tell us the reason. Remember when they first came in there was a rule to curb wages! We know it was taken out by Gill no one in the media reported it or was told why it was taken out!

 

[domalino]

Because the evidence of the continual changes to the rules since they came in in 2013/14 tell us the reason.

There were zero changes to the rules from 2010-2023. It’s been the same basic FFP model allowing 30m losses per season all the way through.

 

[jrb]

“We don’t know the ins and outs of what the spend cap will include but our understanding is that the amount that is allowed to be spent is likely to be on player wages, amortisation and agent fees,” said Davis.

“That will be a fixed total based on the lowest amount of broadcasting money received in the Premier League, so whatever is earned by the 20th club. Over the last few years that has basically meant approximately £100m-worth of broadcasting income, that is what the likes of Sheffield United will earn.

“The spend cap will be a hard multiple, and the rumoured amount is five times that amount, which would basically mean a spend cap of approximately £500m.

“From a good perspective, that will open up the likes of Aston Villa and Newcastle to spend more than what they currently have because under the current regulations it is tied to their own revenues.

“It would also mean under a new regulation, teams like Nottingham Forest could spend what they want to spend, or claim they need to spend, to stay competitive.

“A potential negative is that spending will increase in the Premier League to potentially unsustainable levels.

"The danger is that by saying you are able to spend more, it could be interpreted as you must spend more to remain competitive. We could potentially see more and more clubs pushing to breaking point.”

Premier League spending cap: Clubs vote in favour of developing plans

Premier League clubs vote in favour of developing plans to introduce a spending cap in England's top flight.

www.bbc.co.uk

 

[domalino]

From a good perspective, that will open up the likes of Aston Villa and Newcastle to spend more than what they currently have because under the current regulations it is tied to their own revenues.

I’m pretty sure one of these 2 journalists is confused because they think it allows Villa to spend the same as United, and that’s not what anyone else has reported

The 85% limit on each clubs spending is already voted through. This is a separate cap linking the max spending of the richest club to the revenue of the poorest club in order to stop the gap from top to bottom growing too big.

Maybe they are right but none of their colleagues across the profession are suggesting having a hard cap of 550m will allow Villa to spend 550m and ignore the existing PSR rules.

 

[WestGorton]

Utter joke. You make the most money but you can't spend it. FTP. PAS. This. What other business doesn't let you invest in your own company?

 

[Sir peace frog]

Thanks, im glad you agree with me for once.

our owner has invested in the club,took him 10/15 years to increase the value of the club from 300m to billions,we have got into the position where we can buy who we need within reason to improve our chance to win things earning more money and carry on investing,but you think its a good idea to throw that away,and base his investment on what sheff united earn x whatever

you mr @domalino are one of my favourite posters on bluemoon, always seem to have a well informed view, however i cant help think that if the general consensus was it was a great idea you would have a very well informed argument against it

 

[Iassel]

It tells me it affects clubs with the largest incomes negatively.

Or that the clubs with the largest revenue (inc City) are quite happy to have a closed shop.

 

[domalino]

our owner has invested in the club,took him 10/15 years to increase the value of the club from 300m to billions,we have got into the position where we can buy who we need within reason to improve our chance to win things earning more money and carry on investing,but you think its a good idea to throw that away,and base his investment on what sheff united earn x whatever

Do you think a league where the bottom clubs have budgets of 20m and the top clubs spend 900m every year would be a fun league to watch?

I think it would be shit. It already exists and is called Ligue 1.

Turns out having the best teams in a league spending 40x the bottom teams just makes the football shit, and when the financial disparity is closer, the games are more competitive.

So this proposal tethers the top and bottom together so they never get too far apart. If the big clubs want to keep increasing spending by 10% a year, then they can! As long as the league as a whole is growing too, so TV payments and central income is growing.