Championship wage cap to be implemented

http://www.independent.co.uk/sport/...oduce-financial-fair-play-system-2294639.html

Looks like the cap will be at 60% of turnover. We currently spend 50%, so it's all good. Stops clubs like Leicester and Middlesborough trying to buy their way out of the division to some extent. It's time for the authorities to get tough on debt and overspending and I for one welcome this move.

 

dont forget that juicy lot in wales!! bellamy for me ruined the championship last year!! they wanted the glory thinking they didnt have to compete.

 

You'd hope they enforce it strictly as well with points deductions for teams spending beyond their means. I like the sound of this Greg Clarke guy:

Let's hope his plans come to fruition and work out, then, you never know, the Premiership might even follow and have some sanity restored to it.

 

Would benefit us in relation to Cardiff etc. aswell. Hopefully it will also stop players turning us down because they can get better wages elsewhere.

 

going up through league 1 has opened my eyes in terms of finance! your on a budget and youve to stick with it! Infact the days of spending 7-10-15 mill for us are such a distant for me that when i see a sum of 1-2 mill for a fee linked to leeds united i tend to think wow. he much!!!

Mad i tell you!!

 

The days of saying wow i wanna play for leeds united has seriously long gone!! Soon as the green is pitched to them, then its seee ya

 

Wage cap to 60% turnover basically = Leeds United success. Makes me happy but at the same time kind of sad, I'd quite like to be the "financial underdog" with no outside investment completely overturning the "big boys" with megabucks, showing them how it's done. Oh well, I'll take winning the league by rules that basically dictate we are the most powerful club in the league.

 

They say they'll need a six month period to evaluate it so I guess it won't take effect until the season after next. It should definitely be third time lucky if we don't get promoted this time round.

 

Exactly, if we don't beat the "financially superior" opposition this time (which I totally expect we will, I see no reason we won't get auto this season) then after that we will be the most powerful club in the league, should this take effect. Then we'll get back to the PL, and we'll be playing with the big boys again, stirring up s**t and causing havoc. Good times

 

While I would love for that to be true I don't exactly see it. Will people want to play for Leeds knowing all of the grief and hassle that goes with it? The crap that you have to put up with from a Chairman that loves the sound of his own voice? Probably not.

 

how does the Paracute payments ruling fit into it all then? I mean if you have someone on a 3 year deal & are relagated from the prem theres a good chance your turnover wont be covering your there wages but theres still a contract to honour? Am i missing the point here or have they yet to iron these kind of details out?

 

The clubs comming down from the premiership will still have an advantage over long established championship sides as the parachute payments will be taken as part of revenue turnover .
A good example would be Blackpool who will struggle to get 12,000 in the championship but will have a larger revenue turnover than Leeds with crowds of 27000 as a result of these payments.

 

Wasn't Leeds revenue turnover for the last financial year something like £23 million? That would mean you're saying Blackpool probably have a higher turnover than £7 million without the parachute payment, with awful turnouts at probably meagre ticket prices, as well as very little merchandise sales.

 

I think that's what the six month evaluation period's there for. I'd hope they deduct points proportionate to how much higher than 60% the offending parties spend.

Parachute payments are £5m a year. Like Clarke says on the link in my OP, they don't make that much difference anyway, the clubs tend to use them just to pay off debt, they aren't having the terrible effect we all thought they would. Not saying I'm a fan of them but £5m won't bolster turnover that significantly.

 

It's actually £16 mill for the first 2 seasons and £8 mill for the second 2 seasons.

 

Shiiiiiit, I thought it was £15m in three installments of £5m. We'll see how the FL deal with it anyway, it shouldn't make make or break any team's chances of promotion as most of the relegated clubs are way above the 60% threshold so it's hardly carte blanche for them to keep getting £30kpw players.

 

They'll have to be extremely careful with their finances, especially the smaller clubs. I'd imagine smaller clubs like Blackpool merely end up on a somewhat level playing field with Leeds with parachute payments, although the bigger clubs will obviously have a significant advantage.

 

Yorkshire Evening Post states a number of championship clubs wage bill are higher than there income, They are proposing a salary cap for league 1, what i didn't realise is that league 2 already have a salary according to the article. The Prem already faces a cap of sorts for Champions league club, not sure when it comes into force, next couple of years i think.

They should bring it in for ALL football clubs. SOONER THE BETTER, then greedy footballers wont be able to hold clubs to ransom.

 

interesting points raised there lads i guess we will just have to wait and see

 

Clubs will get around it somehow they will be looking for a loop hole I beleive the taxmans going after clubs who pay a large percentage of a players wage as image rights in off shore accounts to get arround paying tax in the uk. The FL will have to ensure that these so called rights are part of the wage bill when applying the new rules ..