see the problem with the luxury tax is that it is the complete antithesis of what ffp was supposedly designed for which was to stop clubs going into debt, spending above their means and going bust, what they are saying is you can spend whatever you want as long as we get paid too, thats not gonna stop anyone from spending, its just going to mean the pl gets more unearned money and clubs get deeper in debt and continually rob peter to pay paul until as always the whole thing implodes
i think it would have to be because how do you then determine if the club can indeed afford it, how do they decide what the ceiling is for how much you can spend because the wage spend is so disparate throughout the clubs that some clubs could immediately be on the wrong side of it.It shouldn't in theory. You *should* only spend it if the club can afford it (which may mean it can be subsidised by the owner, I don't know).
Then the tax gets spread amongst the teams who maybe can't afford it, so the money stays in the game and helps those who need it.
In theory anyway.
i think it would have to be because how do you then determine if the club can indeed afford it, how do they decide what the ceiling is for how much you can spend because the wage spend is so disparate throughout the clubs that some clubs could immediately be on the wrong side of it.
If the money is spread around clubs then thats a good thing but i dont think it will stop clubs spending beyond their means except now they will be aiming to service debt while paying the pl to boot.
All this desperate legislative flailing about from the PL is proving is that proper independent regulation is needed. Even if they manage to come up with a decent proposal it's not right for the PL to be judge, jury and executioner as it were - they are viewed at least as too partisan.
fair enough seems another way of making the league more american, no shock there.The ceiling is already being set with the new FFP/PSR rules where spending (on players and wages and some other stuff) can't be more than 70% of revenue.
So that's where the limit is. You pay tax into a big pot for every £1 you spend over your limit.
In American sports all the tax money is then pooled and given out to the teams that are under their limit - but that doesn't have to be set in stone.
The main point of the new proposal is that it makes it possible to overspend short term, but makes it unsustaiable long term by being expensive, and you get diminishing returns the more you overspend because more and more of your "extra" money is going to tax instead of your squad.
As soon as they seek to regulate debt to the extent of spending I might believe it's sincere.The ceiling is already being set with the new FFP/PSR rules where spending (on players and wages and some other stuff) can't be more than 70% of revenue.
So that's where the limit is. You pay tax into a big pot for every £1 you spend over your limit.
In American sports all the tax money is then pooled and given out to the teams that are under their limit - but that doesn't have to be set in stone.
The main point of the new proposal is that it makes it possible to overspend short term, but makes it unsustaiable long term by being expensive, and you get diminishing returns the more you overspend because more and more of your "extra" money is going to tax instead of your squad.
i think it would have to be because how do you then determine if the club can indeed afford it, how do they decide what the ceiling is for how much you can spend because the wage spend is so disparate throughout the clubs that some clubs could immediately be on the wrong side of it.
If the money is spread around clubs then thats a good thing but i dont think it will stop clubs spending beyond their means except now they will be aiming to service debt while paying the pl to boot.
Because it has brought about a cartel rather than a co-opWhy isn't it right for the 20 clubs to vote on rules that govern them? That's what they've been doing for 30 years and in that time the Premier League has gone from strength to strength, become one of the country's biggest cultural exports, generates billions for the economy and is the best football league in the world.
What exactly do you think getting this current government involved is going to improve?