SFA considering salary cap

[craig 5,199]

The Scottish Football Association are discussing a salary cap where clubs would only be allowed to spend 65% of their income on wages, Gordon Smith has confirmed.

 

The model being considered follows the reforms in Ireland and would attempt to tackle the problems of clubs spending beyond their means, something UEFA president Michel Platini is also keen to combat.

 

In an interview with FC Business magazine, SFA chief executive Smith said: "I have been talking internally about what happens in Ireland where clubs can only spend 65% of their income on wages.

 

"If we carry on like we are now, I'll be pushing for this and additional reforms in relation to the license to play in our leagues. How can the SFA sit back and watch clubs destroy themselves? And there's a few close to doing that.

 

"Michel Platini has it right on one level that spending through debt is a form of cheating.

 

"But for us here in Scotland it's about ensuring that we retain the clubs we have and they have more money to help build the game as a whole.

 

"Our review on youth development would be pretty useless if there are less professional or league clubs for young Scottish players to play in, wouldn't it?"

 

Finance in Scottish football was complicated by Setanta's UK operation going out of business this summer and Clydesdale Bank Premier League clubs being forced to accept a vastly-reduced broadcast deal with Sky and ESPN.

 

Smith added: "It's not a good idea to be reliant on the TV money, clubs have to be more prudent."

 

 

 

Personally I have to say that with where football has went in the recent past that I would welcome a salary cap. I also think that the introduction of a salary cap helps us seeing as we have taken great strides this pre-season in reducing our salaries !

[Big Spliff 0]

I imagine a lot of smaller clubs will be way over the 65%? Seems a bit daft looking at a Irish model though - smacks of that fat idiot Salmond

[Super_Ally 0]

Can't compete in Europe as it is!

[br1ndy 0]

Way to go SFA... find ways of making the gap bigger

 

Fuds!

[Gazza_8 233]

Is there no end to the SFAs stupidty?

 

Soon we'll be entering the CL at the 1st qualifying round.

[Bluedell 5,612]

So celtic do their retail inhouse and get �£20m of income. We do it through JJB and get �£4.5m.

 

Both clubs are equally profitable on this but Celtic get to pay �£13m salaries on this whereas we get to pay around �£3m.

 

Yeah, great idea, Gordon.

[craig 5,199]

Dont be surprised if Platini adopts this across the UEFA jurisdictions.

 

Are we all conveniently ignoring that this could be a GOOD thing for Rangers given our financial predicament or are we quite happy for the club to have 85% or more of the income being spent on wages ? That could quite possibly put us out of business.

 

I would argue that the clubs have a responsibility themselves to work within decent financial constraints but if it is mandated by the SFA then it becomes requirement and should prevent some of the "boom and bust" we have seen in recent years.

 

We were paying shed loads of money when we had the likes of Albertz, Laudrup, Gazza etc - Eck had to undergo a cost-cutting exercise so we saw the down-sizing - then we had last year's massive spend and here we are this year again having to get rid of players to reduce the wages.

 

I think it makes sense. Otherwise many, many more Scottish teams will go to the wall. Just look at some of the SPL teams as it is - some of them have to be close to administration. Would that help the game in Scotland if we lost 2 or 3 of our top clubs ?

[craig 5,199]

So celtic do their retail inhouse and get �£20m of income. We do it through JJB and get �£4.5m.

 

Both clubs are equally profitable on this but Celtic get to pay �£13m salaries on this whereas we get to pay around �£3m.

 

Yeah, great idea, Gordon.

 

The devil is in the details though, right ?

 

Smith is an accountant is he not ? He would recognise the difference in that and would surely attempt to make that equitable (problem being is that grossing up our numbers would be somewhat aribtrary).

 

Even if not, the Finance dept at Ibrox should be making that same argument.

[Bluedell 5,612]

Still don't see it working. There'd be ways around it.

 

For example we only have �£5K/week left to bring in Rothen, but he needs 20K to come. We pay him �£5K/week and SDM employs his wife to work for MIH at �£15K/week. Simples.

 

There's loads of other problems with it as well.

How do work in bonuses?

Why not take into account other expenses (one club's stadium expenses may be 5% of income whereas another's may be 40%)?

What if a club get's in cash from a share issue?

etc etc.

 

Sorry but I think it's a crap idea.

[Big Spliff 0]

Mixed feelings on this. The motivation (to ensure we keep our clubs) is fine, although there are too many clubs.

 

But buying players with debt is a "form of cheating"? FFS

 

There will be so much opposition to this it'll fall on its arse in no time.