Takeover

[Pragmatist]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

[Remi_Moses]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

How the hell will a £10k / wk wages cap help anything.
It will just widen the gap between the prem and champ.
Applied reminomics says championship incomes must rise £20m a year not restrict the value of the players within the championship. 
Economic sense isn't always the best solution.

[Fulham Fallout]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

How the hell will a £10k / wk wages cap help anything.
It will just widen the gap between the prem and champ.
Applied reminomics says championship incomes must rise £20m a year not restrict the value of the players within the championship. 
Economic sense isn't always the best solution.

A limit on players salaries is coming in to force.  Salaries will not be allowed to exceed 70% of income. 

Why will it widen the gap between the Prem and Champ?  If every clubs does this, then players will have to accept the salaries in the champ or try and find a club abroad who is prepared to pay more.
All the champ players won’t be able to move to a Prem club.

[Derek Hardballs]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

That is akin to asking clubs to impose a salary cap on themselves… the gap between the Prem and Championship will be become impossible to bridge under those constraints. At best you will have six or so clubs yo-yoing due to parachute payments whilst the other clubs watch on in frustration. At some point there will be a legal challenge to the FFP rules as they are anti-competitive. I appreciate why they were created but at the same time they are going to create an unbridgeable divide between the leagues that will see a Prem 2 become more and more of a possibility. I dread to think where that would leave us if we weren’t part of it.

[Fulham Fallout]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

That is akin to asking clubs to impose a salary cap on themselves… the gap between the Prem and Championship will be become impossible to bridge under those constraints. At best you will have six or so clubs yo-yoing due to parachute payments whilst the other clubs watch on in frustration. At some point there will be a legal challenge to the FFP rules as they are anti-competitive. I appreciate why they were created but at the same time they are going to create an unbridgeable divide between the leagues that will see a Prem 2 become more and more of a possibility. I dread to think where that would leave us if we weren’t part of it.

As the rules become tighter on owners pumping money in to clubs….  How is the salary cap going to change the situation we have today, with yo-yo club having parachute payments? 

There are only a certain amount of players and the Prem clubs can’t have them all due to squad size restrictions 

Players have had it too good for too long and reducing salaries has been long overdue IMO.

[Wednesburybaggie]

A salary cap is way overdue. Like in the NFL, clubs should have an overall cap on salaries. Let the club decide which player gets which salary. A different cap for each division would gave to be implemented. There should also be a little leeway for clubs to write promotional bonuses into contracts too.

[Pragmatist]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

That is akin to asking clubs to impose a salary cap on themselves… the gap between the Prem and Championship will be become impossible to bridge under those constraints. At best you will have six or so clubs yo-yoing due to parachute payments whilst the other clubs watch on in frustration. At some point there will be a legal challenge to the FFP rules as they are anti-competitive. I appreciate why they were created but at the same time they are going to create an unbridgeable divide between the leagues that will see a Prem 2 become more and more of a possibility. I dread to think where that would leave us if we weren’t part of it.

You are right that it will probably lead to a Prem 2, but I cannot see any reason why we wouldn’t be a part of it. 

Solving the effect of parachute payments is definitely a conundrum.  They are essential, but the knock-on consequences are an issue.  A reduced PL1 of 18 teams (which will assist re expanded European competitions) and a PL2 of 20 teams (not 24), plus extra funding for PL2 would all help, but the bigger, richer clubs in PL1 will still dominate, as will those PL2 clubs with parachute funding.  One suggestion has been to introduce more strings to be attached to what parachute funding must be used for,  and still impose a salary cap on them (albeit a higher one as they come down with a higher wage bill), but one of the strings could well be compulsory relegation wage cuts.  Only downside of that is that it will make harder in PL1 for lower-half clubs to sign players faced with such potential wage cuts, but they’d all be in the same boat, but it would certainly reduce the advantage of parachute payments to relegated clubs.

[Derek Hardballs]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

That is akin to asking clubs to impose a salary cap on themselves… the gap between the Prem and Championship will be become impossible to bridge under those constraints. At best you will have six or so clubs yo-yoing due to parachute payments whilst the other clubs watch on in frustration. At some point there will be a legal challenge to the FFP rules as they are anti-competitive. I appreciate why they were created but at the same time they are going to create an unbridgeable divide between the leagues that will see a Prem 2 become more and more of a possibility. I dread to think where that would leave us if we weren’t part of it.

You are right that it will probably lead to a Prem 2, but I cannot see any reason why we wouldn’t be a part of it. 

Solving the effect of parachute payments is definitely a conundrum.  They are essential, but the knock-on consequences are an issue.  A reduced PL1 of 18 teams (which will assist re expanded European competitions) and a PL2 of 20 teams (not 24), plus extra funding for PL2 would all help, but the bigger, richer clubs in PL1 will still dominate, as will those PL2 clubs with parachute funding.  One suggestion has been to introduce more strings to be attached to what parachute funding must be used for,  and still impose a salary cap on them (albeit a higher one as they come down with a higher wage bill), but one of the strings could well be compulsory relegation wage cuts.  Only downside of that is that it will make harder in PL1 for lower-half clubs to sign players faced with such potential wage cuts, but they’d all be in the same boat, but it would certainly reduce the advantage of parachute payments to relegated clubs.

Really interesting post Prag, it’s clear that the medium to long term will see quite a lot of changes due ro FFP rules some unseen as yet I’m sure. Not sure I share your optimism for where we will be, it very much depends on what happens over the next six months I suspect.

[Kit Kat Chunky]

It will end up like Scotland. A few competitive teams and a load of also-rans.

FFP creates its own salary cap. I wonder what Ipswich's budget is?

[Pragmatist]

Welcome to stagnation or relegation if that salary cap is confirmed.

The Championship is going to have to become sustainable.  It’s impossible for every club to be losing £20m+ a year.  It will become the new norm.

That is akin to asking clubs to impose a salary cap on themselves… the gap between the Prem and Championship will be become impossible to bridge under those constraints. At best you will have six or so clubs yo-yoing due to parachute payments whilst the other clubs watch on in frustration. At some point there will be a legal challenge to the FFP rules as they are anti-competitive. I appreciate why they were created but at the same time they are going to create an unbridgeable divide between the leagues that will see a Prem 2 become more and more of a possibility. I dread to think where that would leave us if we weren’t part of it.

You are right that it will probably lead to a Prem 2, but I cannot see any reason why we wouldn’t be a part of it. 

Solving the effect of parachute payments is definitely a conundrum.  They are essential, but the knock-on consequences are an issue.  A reduced PL1 of 18 teams (which will assist re expanded European competitions) and a PL2 of 20 teams (not 24), plus extra funding for PL2 would all help, but the bigger, richer clubs in PL1 will still dominate, as will those PL2 clubs with parachute funding.  One suggestion has been to introduce more strings to be attached to what parachute funding must be used for,  and still impose a salary cap on them (albeit a higher one as they come down with a higher wage bill), but one of the strings could well be compulsory relegation wage cuts.  Only downside of that is that it will make harder in PL1 for lower-half clubs to sign players faced with such potential wage cuts, but they’d all be in the same boat, but it would certainly reduce the advantage of parachute payments to relegated clubs.

Really interesting post Prag, it’s clear that the medium to long term will see quite a lot of changes due ro FFP rules some unseen as yet I’m sure. Not sure I share your optimism for where we will be, it very much depends on what happens over the next six months I suspect.

The reality is that we are only where we are currently because of the advantage of having had parachute payments which have enabled us to be a big fish in this pond (until now).

It’s clearer than ever that smart recruitment, exploiting the academy and smart selling are critical going forward.