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(taken from www.sportal.co.uk)
Europe's elite G14 clubs yesterday announced a restriction on the amount each side can spend on players' wages.
From the start of the 2005-06 season, the 18 clubs in the group - including the Gunners, Manchester United and Liverpool - will be limited to spending a maximum of 70 percent of their turnover on player wages.
The agreement is the first time any form of salary cap has been imposed in European professional football since the abolition of the old maximum wage at the start of the 1960s.
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Thoughts on this? Personally, I don't think it is a good thing. A club should be responsible entirely for their own finances. Whatever risks they feel are justified, they should be allowed to take. If they subsequently get into debt, that is their own fault.
In any case, it can be worked around by putting some percentage of a players wages into the commercial department as image rights, or by gifts such as houses and cars, or even shares in the club.
Europe's elite G14 clubs yesterday announced a restriction on the amount each side can spend on players' wages.
From the start of the 2005-06 season, the 18 clubs in the group - including the Gunners, Manchester United and Liverpool - will be limited to spending a maximum of 70 percent of their turnover on player wages.
The agreement is the first time any form of salary cap has been imposed in European professional football since the abolition of the old maximum wage at the start of the 1960s.
---------------
Thoughts on this? Personally, I don't think it is a good thing. A club should be responsible entirely for their own finances. Whatever risks they feel are justified, they should be allowed to take. If they subsequently get into debt, that is their own fault.
In any case, it can be worked around by putting some percentage of a players wages into the commercial department as image rights, or by gifts such as houses and cars, or even shares in the club.
Wages are getting out of hand and it's good that there something being done about it finally -- this solution should have been thought of a long time ago because theres a lot of players of silly wages at this moment in time.
I think Arsenal's squad is big enough for them not to have to worry about it.
Arsenal are already on around 65% though, so it could be a worry for them.
Rooney should be paid more than Beckham and it should be down to the FA to pay Rooney as Everton are Skint.
Everton for the Worthless Cup and Rooney for Prime Minister!
Everton for the Worthless Cup and Rooney for Prime Minister!
Ah, shoudnt have too much of an effect on Man Utd.
Players wages accounted for 48% of turnover last season, but that is up from 39% the season before.
http://news.bbc.co.uk/1/low/business/2287843.stm
Players wages accounted for 48% of turnover last season, but that is up from 39% the season before.
http://news.bbc.co.uk/1/low/business/2287843.stm
I agree with Insane Bartender, as Clubs get too carried away on buying players, and they will be in a very bad financial situation if they get relegated.
This is a measure that could well save football from ruin if heeded. Far too many clubs spend too much on wages, and year on year report huge losses. This should exist at least as a strongly recommended guideline.
An excellent step in the right direction.
An excellent step in the right direction.
(taken from www.sportal.co.uk)
Europe's elite G14 clubs yesterday announced a restriction on the amount each side can spend on players' wages.
From the start of the 2005-06 season, the 18 clubs in the group - including the Gunners, Manchester United and Liverpool - will be limited to spending a maximum of 70 percent of their turnover on player wages.
The agreement is the first time any form of salary cap has been imposed in European professional football since the abolition of the old maximum wage at the start of the 1960s.
---------------
Thoughts on this? Personally, I don't think it is a good thing. A club should be responsible entirely for their own finances. Whatever risks they feel are justified, they should be allowed to take. If they subsequently get into debt, that is their own fault.
In any case, it can be worked around by putting some percentage of a players wages into the commercial department as image rights, or by gifts such as houses and cars, or even shares in the club.
Europe's elite G14 clubs yesterday announced a restriction on the amount each side can spend on players' wages.
From the start of the 2005-06 season, the 18 clubs in the group - including the Gunners, Manchester United and Liverpool - will be limited to spending a maximum of 70 percent of their turnover on player wages.
The agreement is the first time any form of salary cap has been imposed in European professional football since the abolition of the old maximum wage at the start of the 1960s.
---------------
Thoughts on this? Personally, I don't think it is a good thing. A club should be responsible entirely for their own finances. Whatever risks they feel are justified, they should be allowed to take. If they subsequently get into debt, that is their own fault.
In any case, it can be worked around by putting some percentage of a players wages into the commercial department as image rights, or by gifts such as houses and cars, or even shares in the club.