Stay away fans impacting wages?

fosters headband said:

Perhaps some more knowledgable fan can answer my question.
Is it possible that the fall in numbers at home games is now having an impact on the saleries the club can offer.
Not due to the obvious reason that they are getting less income due to falling gates, but didn't the FA introduce a rule that the total saleries paid could only be a percentage of the income?
I seem to remember that this rule was introduced to stop clubs paying wages they could not afford?
Perhaps two full tanks of petrol is a way of getting around this rule.

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Beach Hut said:

Not sure about the % of income bit a Chelsea must surely be paying way over income as they post a loss per annum.

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fosters headband said:

So the way I understand that Storer, the answer to my question is yes.
The more fans that stay away from the Albion the less the club can pay the players or face a fine or points deduction.
Also that means if the turnover has dropped since say Hammond last had a contract he could face a pay reduction due to our turnover dropping in his next contract offer?

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El Presidente said:

1. The Albion are at the limit of their overdraft, so yes, fewer bums on seats = less lucrative wages for players. But that is true of all businesses, not just football clubs.

2. There won't be a fine or points deduction unless we are relegated to League 2.

3. Hammond could be offered different terms to his last contract, but the Albion are in a similar position to all other clubs in this regard.

Business is simple, inputs >= outputs is the golden rule.

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fosters headband said:

Yes but all these fans who say they will only support the team away, are in fact weakening the ability of the club, to pay players what they could get easily at another club. Our average attendance must be nearly 1500 down since Hammond had his last contract. That must be a hell of a lot of money over a season.

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2. There won't be a fine or points deduction unless we are relegated to League 2. [/QUOTE said:

El-Pres is that a change to the proposal that Storer68 posted? As I cant see where it says that there.

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Storer68 said:

League to extend salary cap
The Football League has outlined plans to extend its salary-cap scheme - which starts in Division Three this season - to the First and Second Division inside two years.
All 24 sides in the Third Division, who kick off the new term on Saturday, have signed up to the "salary cost management protocol".

They have pledged to limit player wages to 60% of their turnover - and total salary costs to 75% of their revenue.

Any club failing to meet these targets will be penalised by having to return their £33,000 grant from the Football Foundation, to be dished out once they submit budget forecasts later this month.

Around a dozen Division Two sides and six in the First Division are expected to join the scheme voluntarily and will not have to forfeit their grants - £51,000 for a Second Division club and £330,000 for a Division One team - if their wage bill is too high.

But that will soon change, with fines and even points deductions mooted as penalties once the scheme is applied to the entire Football League.


We want to extend the scheme as quickly as possible and are looking at the Second Division starting next year and the First the year after
Andy Williams
Football League

The Football League will host talks about expanding the scheme in the spring. Division Two outfits are pencilled in to join in August next year and Division One sides in summer 2005.
League director of operations Andy Williamson said: "We chose Division Three to start with because they have more players on one-year contracts.

"We want to extend the scheme as quickly as possible and are looking at the Second Division starting next year and the First the year after.

"We've researched club accounts and assessed what clubs need to do in order to operate in the black. Division Three sides have embraced this scheme.

"There are two ways to deal with it - either have fewer players or stabilise the amount players are earning."

The League, who have seen their total number of players fall by 20% in just two years, estimate an average Division Three player has been earning £35,000-40,000 a year.

Rather than talk about a potential reduction in earnings, Williamson referred to the effect of the new rules on wages as "bringing salaries under control".


(The clubs) will decide whether there are fines or even points deductions - whatever they decide, the scheme will have to have teeth
Andy Williams

League chiefs will now try to persuade the 12 Division Two teams and 18 First Division sides not voluntarily included in this season's scheme that the salary cap is the way forward.
The clubs not taking part in the programme this term will have individual wage targets set by the League.

"It's fair to say we've still got work to do to convince all 72 clubs this is the way to go," Williamson added.

"But all the clubs will decide between them on the penalties for not achieving the 60% and 75% marks.

"They will decide whether there are fines or even points deductions in due course. Whatever they decide upon, the scheme will have to have teeth."

The salary cap could also have a substantial effect on the wages of managers - as a club using the full 60% of their turnover for player wages will have just 15% more to pay their boss and off-field staff.

The scheme was proposed in November and passed at the League's summer AGM.

The Football Foundation grant money - used as bait for Division Three clubs sticking to their targets - comes from the second half of a £20m fund for the Football League, provided by the Football Association and Premier League after the collapse of ITV Digital.


Story from BBC SPORT:
http://news.bbc.co.uk/go/pr/fr/-/sport1/hi/football/3127603.stm

Published: 2003/08/05 23:10:27 GMT

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