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League 1 and 2 to introduce salary caps

Clubs in League 1 and League 2 have voted on favour of introducing a salary cap. This will be £2.5 million in league 1 and £1.5 million in league 2. Clubs will also cap squad size and only be allowed a 20 man squad (players under the age of 21 will be exempt from counting towards the squad cao).

https://www.theguardian.com/football/2020/aug/07/league-one-and-league-two-clubs-pass-vote-to-bring-in-salary-cap

Thoughts? Will this extend up the pyramid?

posted on 7/8/20

comment by There'sOnlyOneRed's (U1721)
posted 32 minutes ago
I think it would be better if the cap was a maximum salary for a player, rather than an overall cap. Although this would need to be across Europe as it would put the league at a disadvantage if they weren't on board with it.
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Thats an interesting point i hadnt considered.

One concern I can see is what happens to Championship clubs who get relegated? If they are already contracted into paying higher sums then what can they do?

posted on 7/8/20

comment by welshpoolfan (U7693)
posted 3 minutes ago
comment by There'sOnlyOneRed's (U1721)
posted 32 minutes ago
I think it would be better if the cap was a maximum salary for a player, rather than an overall cap. Although this would need to be across Europe as it would put the league at a disadvantage if they weren't on board with it.
----------------------------------------------------------------------

Thats an interesting point i hadnt considered.

One concern I can see is what happens to Championship clubs who get relegated? If they are already contracted into paying higher sums then what can they do?
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That's a major flaw in the arrangement. Presumably they would have to sell their high earners. This would then likely put them on at least the same level as the others in the division and make it difficult for them to bounce straight back up. Or perhaps there's a transition season?

It's more complicated than it sounds.

comment by Rain (U22339)

posted on 7/8/20

comment by welshpoolfan (U7693)
posted 8 minutes ago
comment by There'sOnlyOneRed's (U1721)
posted 32 minutes ago
I think it would be better if the cap was a maximum salary for a player, rather than an overall cap. Although this would need to be across Europe as it would put the league at a disadvantage if they weren't on board with it.
----------------------------------------------------------------------

Thats an interesting point i hadnt considered.

One concern I can see is what happens to Championship clubs who get relegated? If they are already contracted into paying higher sums then what can they do?
----------------------------------------------------------------------

Clauses in contracts I presume.

posted on 7/8/20

I look forward to more and more elaborate cases of players and their wives/parents also turning up as scouts, gardeners or non-specific experts in their clubs accounts.

posted on 7/8/20

It's good that something is being done and I think it will work well in these lower leagues, but the issue with the Premier League is that it would really need to be across Europe in order to work.

Salary caps work in America but that's largely because there's no option to move abroad and earn more, as I understand it.

posted on 7/8/20

comment by Winston (U16525)
posted 7 minutes ago
It's good that something is being done and I think it will work well in these lower leagues, but the issue with the Premier League is that it would really need to be across Europe in order to work.

Salary caps work in America but that's largely because there's no option to move abroad and earn more, as I understand it.
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Agree with this. Unless there is a europe wide cap then ot won't work.

posted on 7/8/20

Will this extend up the pyramid?
———
Not a chance. Nor should it. Better that players get paid well rather than owners taking all the profits for doing nothing.

posted on 7/8/20

comment by Imran The King Khan (U10026)
posted 20 minutes ago
Will this extend up the pyramid?
———
Not a chance. Nor should it. Better that players get paid well rather than owners taking all the profits for doing nothing.
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Football is probably one of the only industries where people don't want to see the 'ground floor workers' make the most money. Most other industries you'll see people saying 'Look at those fat cat owners enjoying the wealth while those doing the work get a pittance'

posted on 7/8/20

Yeah it probably is. People seem to underestimate the value of footballers to the industry. Capping their wages makes no sense to me. It’s not like the money will make its way back to the fans.

posted on 7/8/20

I saw a graph on Twitter (so may not be accurate tbf) that said that Sunderland have the best wage to turnover ration in League One right now, but also have the largest wage bill, which they will need to cut by half.

Seems a bit mad to me.

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