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

Is there any sports where it has worked with spending controls making the competition more even? Formula one has introduced a cost cap which has teams like Sauber having a similar budget to Mercedes to develop their cars. Sounds good in principle but in practice Red Bull are dominating the field. Where maybe pre 2021 Mercedes and Ferrari could have thrown money at it to catch up, they can’t and have to wait till new car regulations coming into place in 2026 to see if it shakes up the order in any way.
 
Can someone clarify what the PL mean by "bottom of the league club" when it comes to working out what everyone can spend?
Do they mean the team that finishes the league at the bottom sets the cap for next season or do they mean the bottom team when you put clubs in order of TV revenue? Because they aren't the same thing...

If it's via league position then you *could* in theory see some match fixing going on at the later stages of season to try and manipulate which club comes bottom for more spending power the season after...
 
BlueRain said:
Can someone clarify what the PL mean by "bottom of the league club" when it comes to working out what everyone can spend?
Do they mean the team that finishes the league at the bottom sets the cap for next season or do they mean the bottom team when you put clubs in order of TV revenue? Because they aren't the same thing...

If it's via league position then you *could* in theory see some match fixing going on at the later stages of season to try and manipulate which club comes bottom for more spending power the season after...
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The bottom club gets the least amount of TV revenue so it's both!
 
As long as the spending cap is fixed and the penalties for failure are clear then I don't mind it. Whilst I would prefer our expenditure being linked to our revenue, that also gives an opportunity for our rivals to spend more. We're in a good position to cope with the people we have at the club, but it would make things a lot harder for others.

It's still a vast amount of money, and will ensure we can still be competitive but our owners want more and more and more and will clearly remain opposed to it.

Depending when it comes in, it potentially impacts this summer's business because everyone will need to ensure they're heading into this from a position of compliance. If you're a club that already spends a small sum on players and wages or have a young squad with only one or two additions needed, you're in a better place than those needing an overhaul.
 
supercity88 said:
As long as the spending cap is fixed and the penalties for failure are clear then I don't mind it. Whilst I would prefer our expenditure being linked to our revenue, that also gives an opportunity for our rivals to spend more. We're in a good position to cope with the people we have at the club, but it would make things a lot harder for others.

It's still a vast amount of money, and will ensure we can still be competitive but our owners want more and more and more and will clearly remain opposed to it.

Depending when it comes in, it potentially impacts this summer's business because everyone will need to ensure they're heading into this from a position of compliance. If you're a club that already spends a small sum on players and wages or have a young squad with only one or two additions needed, you're in a better place than those needing an overhaul.
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rags are shafted then
 
BlueRain said:
Do they? Sorry didn't know that - I thought it was done on number of times on TV or something... every day is a school day :)
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It's split 50% is paid evenly across all clubs. 25% is a payment based on TV games (hosting costs) and 25% is a merit payment based on league position.

I'm perhaps wrong in saying the bottom placed club would always be bottom on that basis. It may just have fallen that way with Southampton.

The mighty Leeds with their incredible fans would probably feature on TV more and perhaps earn more than a team above them if they finished bottom.

In that case it would be the lowest sum in TV revenue rather than lowest league position from what I understand.
 
marco said:
rags are shafted then
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Which is where my positivity is coming from on this, and why they voted against it. We've got a "bring it on" attitude, where we don't care if it enables our rivals to spend more we want the opportunity to continue to grow the club and become richer and richer and have the ability to spend more as a result. So it's competition related. Villa obviously are on the up too and probably have plans to spend more, grow revenues more and don't want to be stifled by a different system at this time in their ascendency.

Chelsea are fucked either way so just sitting back and seeing what happens.

There's a long way to go still. If the research comes back and suggests a threat to the financial growth of clubs then the majority will oppose it.

We saw with FFP how clubs went along with it, thinking it would preserve their position in the prem and actually in hindsight they'd have gone against it. Everton being a prime example.
 
halfcenturyup said:
I suppose it depends what the point of the rules is: if it is really about increasing competition in the PL, I really don't see a point in anchoring squad spend. The PL wants to increase competition, let clubs spend what they want as long as it isn't debt based and there is some proactive control over equity investment and community assets. The top clubs are hamstrung by the UEFA FFP anyway, so what is the point of the 85% rule if you want "smaller" clubs to catch up?

It seems to me there is no strong strategic guidance from the PL and the rules lurch from one idea to another without any firm principle based on what a few clubs feel strongly about. Let's hear what the PL actually want to achieve and then we can judge the new rules. It's all a bit camel/horse at the minute: they want the league to be more competitive but they don't want the smaller clubs to be able to challenge. So what is the fucking point? Typical Masters bullshit.
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This is exactly the point. You have to start with the 'What', which is the objective you're trying to achieve. Then you work out the 'How'. But it seems the PL really doesn't understand what it's trying to achieve.
 
Does this mean that, over time clubs like Real are able to spend more to entice players as it doesn't matter what UEFA's rules are as, primarily, PL is the bed and butter rules we need to adhere to (accepting that CL rule is higher atm)?
What I'm saying is, if Real have a bigger revenue and are able to spend 85% of it, surely they can spend more? If true this would lead to an erosion of top talent in PL clubs.
 
feedmpenzaandhewillscore said:
Is there any sports where it has worked with spending controls making the competition more even? Formula one has introduced a cost cap which has teams like Sauber having a similar budget to Mercedes to develop their cars. Sounds good in principle but in practice Red Bull are dominating the field. Where maybe pre 2021 Mercedes and Ferrari could have thrown money at it to catch up, they can’t and have to wait till new car regulations coming into place in 2026 to see if it shakes up the order in any way.
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If it wasn't for spending controls then NFL & MLB twould be dominated by Dallas Cowboys and New York Yankees respectively, both of whom have the biggest revenues in those sports.
 
Prestwich_Blue said:
If it wasn't for spending controls then NFL & MLB twould be dominated by Dallas Cowboys and New York Yankees respectively, both of whom have the biggest revenues in those sports.
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Not to mention the worst team gets the pick of the best players to keep it competitive and equal income from Tv. It’s all very socialist. Wouldn’t work in football though.
 
The Premier League has built a fantastic product, the Hateful 8 were smarting at us being top dogs. They’ve tried everything to stop us, now, in desperation they’re using their last joker card.

They’re prepared to make these changes and sacrifice the League’s success just to stop us. The fact we voted against these changes should tell everyone all they need to know, the best run club in all the world 100% know why these changes are being mooted.

Once the League is fucked, they’ll go back on these changes and introduce different rules, hopefully we stand our ground.

It’s so obvious, even Stevie Wonder would see what’s happening here.
 
Are the PL really that out of touch? Theyd sabotage their own league. With this spending cap. A European team will be able to offer a player and club more in terms of fee and wages. Which in turn weakens the PL as players will chose other leagues
 
supercity88 said:
Which is where my positivity is coming from on this, and why they voted against it. We've got a "bring it on" attitude, where we don't care if it enables our rivals to spend more we want the opportunity to continue to grow the club and become richer and richer and have the ability to spend more as a result. So it's competition related. Villa obviously are on the up too and probably have plans to spend more, grow revenues more and don't want to be stifled by a different system at this time in their ascendency.

Chelsea are fucked either way so just sitting back and seeing what happens.

There's a long way to go still. If the research comes back and suggests a threat to the financial growth of clubs then the majority will oppose it.

We saw with FFP how clubs went along with it, thinking it would preserve their position in the prem and actually in hindsight they'd have gone against it. Everton being a prime example.
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It seems that whichever set of rules are implemented, City are best placed to deal with them in the long run. The other thing that stands out is the short sighted nature of these regulations, and any others for that matter, seem to limit the development potential of most of the clubs that are voting for them. It's almost like self inflicted collateral damage, unless I'm looking at this from the wrong angle. Therefore the only other option to restrict a specific club is a besmirchment campaign, like the one we are witnessing against our club now with alleged PL breaches.
 
Roachy said:
It seems that whichever set of rules are implemented, City are best placed to deal with them in the long run. The other thing that stands out is the short sighted nature of these regulations, and any others for that matter, seem to limit the development potential of most of the clubs that are voting for them. It's almost like self inflicted collateral damage, unless I'm looking at this from the wrong angle. Therefore the only other option to restrict a specific club is a besmirchment campaign, like the one we are witnessing against our club now with alleged PL breaches.
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There's a lot of pressure from external sources - the EFL, the political sphere etc for the PL to better regulate clubs and their spending. The idea initially was to prevent clubs going bust, but that was just a cover for essentially protecting the historic elite. Now it's all an obsession over profit and loss but doesn't perhaps provide enough mitigation for clubs going up and down the leagues or having external issues and it's creating uncertainty over the actual league table and what it might look like once punishments/appeals have been dealt with.

You've got the wider pyramid struggling to make ends meet whilst the PL clubs, particularly at the top, are pulling further and further away.

The caps elsewhere in Europe and with UEFA are stricter so the PL shouldn't decline. But it depends whether the product remains as attractive. If things are impacted and revenues drop so will the amount the clubs can spend and it will lead to a decline in the future. Right now that's not a risk, but we'll see how long it lasts.

In rugby it's not had any benefit. You've even got English players who sacrifice an international career to go and make money abroad. Similarly with cricket. Again, not a risk currently in England but again perhaps in the future.
 
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