Peter Parker
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Richard Walker
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Post by Peter Parker on Aug 7, 2020 12:45:37 GMT
£2.5m in League One
£1.5m in League Two
Effective immediately
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Rex
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Post by Rex on Aug 7, 2020 12:47:46 GMT
£2.5m in League One £1.5m in League Two Effective immediately Yeah, that'll work
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Peter Parker
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Richard Walker
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Post by Peter Parker on Aug 7, 2020 12:51:57 GMT
Discussions continue with Championship Clubs in respect to amendments to their own financial controls. League One and Two Clubs are also going to continue discussions towards the introduction of additional measures aimed at addressing Club financial sustainability.
When calculating total salary spending, the ‘cap’ includes:
· Basic Wages; · Taxes; · Bonuses; · Image rights; · Agents’ fees and; · Other fees and expenses paid directly or indirectly to all registered players.
Payments directly linked to a Club’s progression in cup competitions or promotion are excluded from the Cap, while any income generated from players going out on loan is deducted from the Club’s Salary Cap calculation.
Transition arrangements have been incorporated in respect of a Club’s squad salary cap calculation with the key element of these aimed at addressing committed contracts and relegated Clubs. Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire.
An ‘overrun’ concept is also included if a Club’s total squad salary payments exceed the Cap by up to 5%, whereby dependent on the percentage level of the overrun, a financial penalty would be payable for every £1 in excess. Clubs exceeding the ‘overrun’ would be referred to an Independent Disciplinary Commission, although the EFL will monitor the Cap on a real-time basis throughout the season as is the current position with SCMP measures across the two divisions. Where breaches do occur, sanction guidelines are in place to be considered as appropriate by an independent Disciplinary Commission.
EFL CEO, David Baldwin said: “The term ‘salary cap’ is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL Regulations. The financial impact of Covid-19 will be profound for EFL Clubs and today’s vote will help ensure Clubs cannot extend themselves to the point that could cause financial instability.
“Over the last two weeks the discussions amongst Clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus today and I am pleased that the Clubs have determined to adopt the new approach. We will now work with all Clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL.”
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basel
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Post by basel on Aug 7, 2020 13:09:18 GMT
Points deduction for rule breakers I assume.
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bluetornados
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Post by bluetornados on Aug 7, 2020 14:00:34 GMT
Clubs in League One and League Two have voted in favour of introducing a salary cap, taking effect immediately.
Limits have been set at £2.5m and £1.5m for the respective divisions.
Wages, bonuses, taxes and image rights, plus agents' and other relevant fees, will be included within the cap but bonuses gained from promotion or progression in cups will be exempt.
Clubs will be fined or face further sanctions if they exceed the spending limits.
A statement from the English Football League (EFL) said: "The decision follows extensive and comprehensive consultation with all clubs in respect of addressing sustainability and wage inflation issues across the EFL, which were initiated prior to the suspension of football in March following the Covid-19 outbreak and have continued during the course of the summer.
"Those discussions culminated in today's divisional vote, with representatives of League One and League Two clubs opting to implement the new measures in place of the existing salary cost management protocols."
The statement added that clubs in the third and fourth tiers are talking about "additional measures aimed at addressing club financial sustainability", while Championship clubs are continuing discussions "in respect to amendments to their own financial controls".
Before Friday's vote, the Professional Footballers' Association (PFA) said it had "concerns that the proposed cap is being rushed through, without proper consideration or consultation".
Talks 'healthy and constructive' EFL chief executive David Baldwin added: "The term 'salary cap' is an emotive one, creating the impression of a restrictive measure but we are clear in our view that this is neither the objective nor the likely effect of these changes to EFL regulations.
"The financial impact of Covid-19 will be profound for EFL clubs and today's vote will help ensure clubs cannot extend themselves to the point that could cause financial instability.
"Over the last two weeks the discussions amongst clubs in both Leagues One and Two have been healthy and constructive, allowing us to reach a clear consensus and I am pleased that the clubs have determined to adopt the new approach.
"We will now work with all clubs, the PFA and, where appropriate, other stakeholders to implement the new rules and continue our efforts to bring long-term sustainability to the EFL."
What happens if a club exceeds the cap? If a club is over the salary cap by up to 5%, they will face a financial penalty for every £1 by which they exceed the limit.
Any club exceeding the 'overrun' will be referred to an independent disciplinary commission for further sanction.
And what about clubs moving between divisions? The EFL says "transition agreements" have been incorporated for relegated clubs and players on longer-term contracts.
Their statement added: "Any contract entered into on or prior to the vote will be capped at an agreed divisional average until that contract expires.
"Moving forwards, clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the club's relegation until those contracts expire."
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Rex
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Post by Rex on Aug 7, 2020 14:04:51 GMT
Points deduction for rule breakers I assume. Obviously, although a decent lawyer will find a way around it.
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GasMacc1
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Post by GasMacc1 on Aug 7, 2020 14:26:32 GMT
It would be useful to compare Rovers’ total player wages in recent years with that £2.5m cap.
The only figures I have to hand are:
Rovers Total Wages 2017 (not just players): £5.047m. Agent’s fees paid by Rovers 2018-19: £0.14m
And another thing.
“Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire”.
I’m trying to disentangle this paragraph. Let’s say the divisional average contract is £100k. It means that if we’ve agreed a contract with a player before today for £150k per annum, it would only count £100k per annum towards the club’s limit.
I thought initially that this rule would favour the relegated teams (Charlton, Hull and Wigan, at the time of writing). Maybe Rovers have a slight advantage, though, in that we’ve brought in six players early!
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basel
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Post by basel on Aug 7, 2020 14:56:50 GMT
Points deduction for rule breakers I assume. Obviously, although a decent lawyer will find a way around it. Apparently Ipswich,Sunderland and Peterborough voted against. They can afford OJ Simpsons team.
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Deleted
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Post by Deleted on Aug 7, 2020 15:04:49 GMT
Points deduction for rule breakers I assume. Unless you are from Manchester, and play in blue, in which case just do whatever you like and demand an apology if you get caught breaking the rules.
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Delsy
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Post by Delsy on Aug 7, 2020 15:06:35 GMT
Obviously, although a decent lawyer will find a way around it. Apparently Ipswich,Sunderland and Peterborough voted against. They can afford OJ Simpsons team. Sunderland were pants last season and fully deserving of their Div Three status.
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Post by o2o2bo2ba on Aug 7, 2020 15:19:42 GMT
Points deduction for rule breakers I assume. Unless you are from Manchester, and play in blue, in which case just do whatever you like and demand an apology if you get caught breaking the rules. Exactly! One set of rules get your points deduction this season and relegated, another breaks different rules and is applied to next season. The whole thing's a joke.
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Deleted
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Post by Deleted on Aug 7, 2020 15:51:26 GMT
Unless you are from Manchester, and play in blue, in which case just do whatever you like and demand an apology if you get caught breaking the rules. Exactly! One set of rules get your points deduction this season and relegated, another breaks different rules and is applied to next season. The whole thing's a joke. It's just a messed up system when 1982 are losing more every year than the total debt that caused Bury to cease to exist.
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warehamgas
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Post by warehamgas on Aug 7, 2020 15:52:15 GMT
Well the clubs voted for it and it’s now up to them to make it work. Im against it but if the clubs want it then it’s up to them to make it work but I am highly sceptical that all clubs will try to make it work. I would have preferred the EFL making their current rules, which I think are still there, regarding salaries as a % of income and FFP as being better. Making more rules isn’t always better, policing existing ones may be. I’m sure Rochdale and Accrington and others, including us as we voted for it, will abide by it but the bigger clubs ....? Not so sure. The rules and regulations around the salary cap sound complicated so that will enable different interpretations of what they mean. Over the next week expect club legal people to be looking at the details to identify the areas where clubs can get around it. I’m sure that many players in clubs where the owners are wealthy to be taking up second contracts as “advisors”, even gardeners, possibly chauffeurs etc without working in such roles of course. And if anyone thinks the EFL will be able to police this they must be living in cloud cuckoo land. Unfortunately experience shows when it comes to overseeing clubs financial affairs the EFL are worse than useless. Come the end of the season there will be multiple charges against clubs, appeals by clubs where they are found guilty and no one will have any certainty about who’s been promoted or relegated until months later, if then. It will become an administrative VAR system, we wait an age to know what the heck is happening. Crazy! Though undoubtedly well-meaning, it feels like the lunatics have truly taken over the asylum. UTG!
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