Wage cap rules

Wage cap rules

Postby feelingguilty » Sun Jan 18, 2009 3:34 pm

The article on the actual rules makes really interesting reading and is an impossible dilema for the directors.

In July - do they predict a cup run and good gates? If they do revenue is higher, more wages can be paid and a cup run and gates are more likely as more wages should attract better players- BUT then in December if these good gates and cup run dont happen properly in a mess.

Really hard and what clubs predict for second half of season has a massive impact. We could predict gates will increase to last years levels, therefore get embargo lifted, get better players in and they might!!!

Who says prediction is fair? - the more ambitious the prediction the more wages can be paid. Clearly not sustainable long term as finances would not allow. Why havent teams like Luton got a problem - as surely they must be predicting relegation. If not who decides whether thats right?

Way to judgemental and open to abuse for my liking
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Re: Wage cap rules

Postby The Red Knight » Sun Jan 18, 2009 4:17 pm

feelingguilty wrote:In July - do they predict a cup run and good gates? If they do revenue is higher, more wages can be paid and a cup run and gates are more likely as more wages should attract better players- BUT then in December if these good gates and cup run dont happen properly in a mess.

No. You budget for the worst case scenario (low crowds and going out of every cup competition at the first round) as this is all you can gurantee.

Any extra money you make is a bonus.

This is the proper way to run a football club.

Spending money you potentially could make from big crowds and long cup runs is how the likes of Leeds get into the situation they currently find themselves in.
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Re: Wage cap rules

Postby George Dawes » Sun Jan 18, 2009 4:18 pm

totally agree with whats said above, just use common sense...
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Re: Wage cap rules

Postby feelingguilty » Sun Jan 18, 2009 4:49 pm

I agree using common sense is completely the right thing to do (and I suspect we do) - my point was does everybody else?

If everybody used this common sense approach - why so many with financial difficulties?

The point I was trying to make is that clubs who do not make common sense projections can pay higher wages than those that do.
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Re: Wage cap rules

Postby maccawozzagod » Sun Jan 18, 2009 5:25 pm

I'm not as 'au fait' with the rules as most of you might be by now, but I thought that the wage cap was set against your previous years audited figures rather than this years projected one?

Surely your budget (which is not affected by any capping) is set against what you expect to make?

eg Last year we had a turnover of £1m therefore 60% of that (600k or £50k a month) can be spent on wages.

This year we forecast that we will make £1.5m turnover therefore we can spend a million on a new defender (wages would have to be within the £50k a month).

Wages aren't important at Stanley as they on pay as you play contracts ie if you play you owe us a tenner!
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Re: Wage cap rules

Postby Harry » Sun Jan 18, 2009 7:56 pm

It said in Neil Marsden's column yesterday that your budget is compared with last year's figures, for accurate comparison and budgeting. Our average attendance was 2800, which Rod Taylor appealed to the fans to get it above 3000 this year and is presumably what they board have budgeted for.

We got to the northern final of the JPT, and got to the 3rd round in the league cup (something that, especially after the Forest game, the board could have switched with the FA Cup after last season's poor performance). It's acknowledged, even by David Robinson if I remember rightly in the programme, that we lost significant players but in my opinion the board predicted that we would match or improve on last season, being a tad optimistic whilst maybe not considering negative factors ie 'second season syndrome' or the aforementioned loss of arguably our 3 best players as much as they should have done.
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Re: Wage cap rules

Postby Aal » Sun Jan 18, 2009 8:02 pm

Attendances always fall for a second season club..even if they do better on the pitch. There's been a big drop in away fans most of the games I've seen (except Rochdale) and most of the glory hunters have gone back to what they used to do on Saturday afternoons.

Mind you after the horrendously windy journey home on the bike yesterday, after an incredibly uninspiring game, I may join them!!
Better to have loved and lost than never to have loved at all
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Re: Wage cap rules

Postby George Dawes » Sun Jan 18, 2009 8:06 pm

TBH when people go on about glory hunters & getting more local intrest etc, 85% of the lads i know round here, would just rather save £15 and watch football in the PUB.


and follow Morecambe on sky sports news
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