Squad Ratio Rules?

[Grappler]

Theres another vote which might be an issue for the spendageddon at S6


League One clubs, in contrast, are voting on whether to have greater alignment with League Two by reducing permitted spending under the salary cost management protocol (SCMP) from 60% to 50% of turnover.

"...Clubs relegated from the Championship will be permitted to spend 65% of Turnover on wages during their first season in League One, reduced from 75% under the current rules..."

 

[Old Programme seller]

You have exponentially more income in the Premier League and can afford higher wages. Don't try and tell me "but what if you get relegated and stuck with the wages" - that is what parachute payments are for, to try and allow teams to be competitive when they promote and give them two year's leeway to clear players off the books as needed.

Yep promoted clubs are given more money but compared to the top 5 clubs it’s insignificant

 

[jt64]

Yep promoted clubs are given more money but compared to the top 5 clubs it’s insignificant

The initial plan for promoted teams is not to beat the top 5 clubs. It's to beat the bottom five clubs.

 

[Old Programme seller]

But financially the promoted club is a bottom 3 club and you can’t beat yourself

 

[Need4speed]

To say our rumoured wage budget (including Tom Davies, Mee and Ings) is £31.55 million for the year, those 3 combined rumoured to be £4.36million a year that takes us down to around £27million in wages Hamer's salary is in the region of £1.5mill a year and then any fee we get for him will about balance the books to the new target. To bring anyone new through the door we need to be either having a slight owners cash injection or sell someone else to fund other transfers. Peck's salary won't be breaking the bank but income raised through either offloading him would allow us to bring in potentially a couple of signings. Not forgetting that "frees" have agent fees and signing on bonuses that need to be included. That being said, I don't think we will be in that bad of a position and that target isn't unachievable, if we can get Marsh fit, we could get a small fee there which could be enough for a loan inbound to cover wages. It is going to be playing a trading game but as long as we have assets coming through the academy that can assist the first team for a short while before being sold on for a fee we will tick over ok.

I think one good thing is that all clubs are going to be thinking that agents fees is an area we need to cut. also pemiership clubs are going to find that clubs can't afford to pay the wages of loan players, if they want players to develop they will have to pay their wages. Then it will be about where they see their players having the best opportunity to do this.

 

[loyalblade95]

Apparently clubs have been shadowing SCR rules over the last year so know what to expect . Not a bad thing if you have decent revenue and saleable players although profits from sales are smoothed over a 3 year period .

Spending 85% of revenue on squad costs sounds pretty sensible tbh.

Plus, these rules are basically the same as the current UEFA spending rules for European competitions, only theirs are capped at 70% instead of 85%.

 

[CityInPeace]

I think you might see some creative accounting or some interesting sponsorship deals to navigate round these rules. Some will certainly attempt it

Creative accounting, which loopholes? Loads and loads are shut now.

Interesting sponsorship, yeah more likely, EFL/CFRU will check this stuff quite quickly tho.

What I can't work out is what exactly is Revenue- eg a Trade Show, a Concert, non-Matchday stuff on the footprint of the Stadium- how is that all calculated.