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Post by yeoldetangerine on Mar 31, 2011 17:07:19 GMT 1
Just come across the fullest explanation that I have found yet. Looks like they want to start it softly softly, hoping, I guess, to get the big sugar daddy and indebted clubs to look at it without reaching for their lawyers. www.bbc.co.uk/news/business-12908466
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Post by yenilira on Mar 31, 2011 18:49:24 GMT 1
...hoping to saved this topic until the close season when we don't have much to berate our fertile minds.............. but there you go....... In a nutshell, all clubs will have to prove they aren't spending more than they earning by 2014 or face being banned from European competition, i.e. a club must not spend more than 70% of its turnover on wages. . For example, Wigan's wages bill takes them above the UEFA limit, as their salaries take up approx. 91% of turnover, and Whelan's going to find it difficult to underwrite their future losses. And that's an 'unfashionable' club. On the other side of the coin, Blackpool with the lowest wage outlay in the Prem (at £5-6million) and our 'financial success' is exactly the sort of thing Platini likes to encourage thru the above FFP. Then we have the likes of Chelsea with wages expenditure just below that threshold. Newcastle really have some problems, as, if you will remember, they shed quite a bit when they went down to the 'fizzy pop league' and now its shot back up to 83%. With Man. United, it's the debt levels which will be the drawback, despite only having a wage bill of only 44% of turnover. I'm not sure what Citeh have spent, something around £133million? on wages, but I know that their accounts for 2010 don't include the likes of Milner, Balotelli, Dzeko, Boateng, Silva, or £220,000 pw Yaya Toure, so these will be shown on this year's figures. Also, they are the only Prem club whose wage bill is higher than overall turnover. Wolves are another club over the 'magical 70' mark - 92%. Where the FFP really comes into being, is that we should see transfer fees and wages drop dramatically, which is no bad thing. YL.
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Post by Tangerine Sherlock on Apr 3, 2011 5:10:41 GMT 1
I read a piece in the paper about this yesterday and looks like they have just made a right hash of it as it will still be a advantage to the big 4/6 clubs while the smaller clubs in the premiership will in fact struggle.
salary cap is the only way to stop what is going on at the moment
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