Takeover

[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.

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.

Let's play devils advocate here.
A team get relegated and they have a Vardy and a Winks who are earning £250k a week between them. That's the same as a squad of 25 on £10k/wk
Nobody can compete now, so how would they be able to then. Who comes up with these stupid ideas without thinking about the details.
Great idea in a fantasy world