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New EFL rules? Expenditure cannot exceed 70% revenue.

Liberation

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I saw Mud at the Gatsby... Bloody hell Les Grey had put some weight on..... Oh yeah and Billy idol at the Apollo.. Can't come up with an EFL rule that applies though.. :D
 

Walton

Advisor to the Owner
I've read this 3 times and because I'm a bit fick I really don't clock what's being proposed... I think that every club in the whole professional " pyramid" should be given an equal amount regardless of where they finish.... And then they stand or fall based on good management. That would include the prem btw.

Any chance of a Janet and John explanation please?


Everybody get the same, you a communist Or summat? :ROFLMAO:
 

rem

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Those parachute payments we never looked likely to get could soon be history - the Prem and EFL are talking about a new "merit-based" system, because if they don't agree a deal, the upcoming Independent Regulator will make one for them:

"The Premier League wants the money it gives to the lower divisions to be based on where they finish in the league table — and for enhanced cost controls to prevent spendthrift clubs wasting the income — before it agrees to increase its payments.

"The EFL leadership would back the idea if it meant the club finishing top of the Sky Bet Championship receives about 1.7 times the amount of the club finishing bottom — a similar ratio to the Premier League. One proposal it has rejected is for the clubs at the top receiving many times the amount of cash as those at the bottom. The plan would have to be agreed by the EFL clubs, but league chiefs would also support new cost controls.

"The merit-based payment idea has backing within the EFL and the Premier League as it should reduce the ‘cliff edge’ between the divisions and also see the controversial parachute payments made to clubs relegated from Premier League greatly reduced.

"The Premier League has said it will give away £1.6 billion to the rest of the football pyramid over the next three years, about 16 per cent of its revenues. Just over half of that is in parachute payments. There is pressure for the distribution to be raised to closer to 25 per cent — another £1 billion or so more."


Am I right in thinking that the Independent Regulator will impose new rules if the Premiership and EFL haven’t reached agreement by a date in June?
 

Muzza

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Which one?

And surely Gojira and ABBA, and Sepultura, and Deicide are not bloody awful, to name but four.

These are superb bands with an identity, not easy.
I used to have Glen Benton's very own Deicide t-shirt. A mate interviewed him for a metal mag and Glen gave it to my mate, who passed it on to me as he knew I used to love them.
 

Thracia

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I've read this 3 times and because I'm a bit fick I really don't clock what's being proposed... I think that every club in the whole professional " pyramid" should be given an equal amount regardless of where they finish.... And then they stand or fall based on good management. That would include the prem btw.

Any chance of a Janet and John explanation please?
The EFL wants the Prem to scrap parachute payments and dish out its money more evenly across the 24 Championship clubs.

The EFL wants the club finishing top of the Championship to receive no more than 1.7 times the amount received by the club finishing bottom. This would be a return to the old "merit-based" system where final league position affects the money each club gets from the Prem.

The Prem (with its usual chutzpah) wants safeguards to stop Championship clubs spending this new money recklessly. It's also not clear whether the Prem will agree to completely scrap parachute payments, but that's a key EFL demand.

In addition, the government wants the Prem to increase its total contributions to the lower leagues from 16% of income to 25% - which would mean an extra cool one billion pounds to be spread around each year. The Prem are trying to resist that change too.

This would all need the agreement of the Prem and EFL clubs - but there's some external pressure on them to reach a deal too, because the government is threatening to impose changes if the Prem and EFL can't work it out between themselves.

The article doesn't say what would happen in L1 and L2, but presumably they'd also see an increase in money and maybe a change in how it's distributed (based on league position) - but I don't think anyone is talking about the Championship giving up its current lion's share of the Prem cash (the Championship currently gets 75% of all the Prem money given to the EFL, L1 about 15%, L2 about 10%).


The upshot of all this for PNE, assuming we were still in the Championship when it came in, would be a much bigger slice of Prem money each season compared to now.

And PNE will particularly want this to happen ASAP, because a parallel Prem/EFL change also being discussed right now is the one mentioned in the OP (and by Peter Ridsdale in the recent PSC meeting) - the proposal to cap each club's transfer and wage spending at 70% of turnover.

That would immediately make PNE about 60% over-budget on wages alone, based on our current (low) revenues.

Peter seems to have suddenly realised that outsourcing everything for low license fees and not bothering too much about sponsorship deals - because who needs em when there's a billionaire owner in place - is a bad idea after all, in terms of profit and sustainability and being a "well-run" club in the eyes of the authorities.
 

Staffordwhite

Advisor to the Owner
The EFL wants the Prem to scrap parachute payments and dish out its money more evenly across the 24 Championship clubs.

The EFL wants the club finishing top of the Championship to receive no more than 1.7 times the amount received by the club finishing bottom. This would be a return to the old "merit-based" system where final league position affects the money each club gets from the Prem.

The Prem (with its usual chutzpah) wants safeguards to stop Championship clubs spending this new money recklessly. It's also not clear whether the Prem will agree to completely scrap parachute payments, but that's a key EFL demand.

In addition, the government wants the Prem to increase its total contributions to the lower leagues from 16% of income to 25% - which would mean an extra cool one billion pounds to be spread around each year. The Prem are trying to resist that change too.

This would all need the agreement of the Prem and EFL clubs - but there's some external pressure on them to reach a deal too, because the government is threatening to impose changes if the Prem and EFL can't work it out between themselves.

The article doesn't say what would happen in L1 and L2, but presumably they'd also see an increase in money and maybe a change in how it's distributed (based on league position) - but I don't think anyone is talking about the Championship giving up its current lion's share of the Prem cash (the Championship currently gets 75% of all the Prem money given to the EFL, L1 about 15%, L2 about 10%).


The upshot of all this for PNE, assuming we were still in the Championship when it came in, would be a much bigger slice of Prem money each season compared to now.

And PNE will particularly want this to happen ASAP, because a parallel Prem/EFL change also being discussed right now is the one mentioned in the OP (and by Peter Ridsdale in the recent PSC meeting) - the proposal to cap each club's transfer and wage spending at 70% of turnover.

That would immediately make PNE about 60% over-budget on wages alone, based on our current (low) revenues.

Peter seems to have suddenly realised that outsourcing everything for low license fees and not bothering too much about sponsorship deals - because who needs em when there's a billionaire owner in place - is a bad idea after all, in terms of profit and sustainability and being a "well-run" club in the eyes of the authorities.
I’m all for the Prem handing more money to the lower leagues, but it should come with a wage cap, or at least moves towards stopping EFL clubs spending the lot on player wages.

There needs to be a radical rebalancing, otherwise more clubs will start hitting the skids.
 

Thracia

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I’m all for the Prem handing more money to the lower leagues, but it should come with a wage cap, or at least moves towards stopping EFL clubs spending the lot on player wages.

There needs to be a radical rebalancing, otherwise more clubs will start hitting the skids.
And that's exactly what they are planning with the implementation of UEFA's new squad cost rule in the Prem/EFL - a cap on wages and transfer fees and agents fees (combined) at 70% of turnover - to be phased in starting from 2023 for UEFA competitions, still TBD for Prem/EFL - but Peter knows it's coming.

Unless we can start actually developing and/or selling our own players for profit, or - gasp! - making money as a well-run club, PNE as we know it will be totally screwed under these rules.

Never mind a squad of 25, we'd be looking at a squad of 10 based on our current turnover and wage bill.
 

noelpne

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I don't see why their can't be a wage ceiling imposed - compare Fulham's & Bournemouth's average wage/squad member to Barnsley's or PNE's.
 

Thracia

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I don't see why their can't be a wage ceiling imposed - compare Fulham's & Bournemouth's average wage/squad member to Barnsley's or PNE's.
As the OP says, they plan to impose a wage ceiling but it will be linked to each club's individual turnover.

Our turnover is one of the lowest in the division (handouts from the owner don't count as turnover).

So our wage ceiling would likewise be one of the lowest in the division - much, much lower than our current wage bill.
 

TomPNEFC

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As the OP says, they plan to impose a wage ceiling but it will be linked to each club's individual turnover.

Our turnover is one of the lowest in the division (handouts from the owner don't count as turnover).

So our wage ceiling would likewise be one of the lowest in the division - much, much lower than our current wage bill.
We really do need to start working on increasing revenue. Ticket sales are only one part of it. We need to look at sponsorship deals, better merchandise, academy and player sales. So much more we can be doing than at present.
 

mozzchops

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All teams would have to cut their cloth accordingly.. All players wgaes would be lower. It wouldn't be as difficult to get some players over the line. Although increased revenue is a must it seems fairer than it is now.
For teams to compete with the parachute payments makes it completely unfair and it raises wages all around. I'm hoping this reduces wages to a more fair standard.
 

Thracia

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All teams would have to cut their cloth accordingly.. All players wgaes would be lower. It wouldn't be as difficult to get some players over the line. Although increased revenue is a must it seems fairer than it is now.
For teams to compete with the parachute payments makes it completely unfair and it raises wages all around. I'm hoping this reduces wages to a more fair standard.
The trouble is, there's no guarantee that the Prem will completely scrap parachute payments, so wages at the top of the Championship may well stay much the same, while the same yo-yo clubs become even more entrenched.

And I think moreover, the effect of these changes will be to bake in the current differences between large and small clubs throughout the EFL - and we'd very much be a small club in that shake-up, compared to our Championship peers, and several larger clubs currently down in L1.

The advantage of us having billionaire owners would be reduced to hoping they finally decided to invest in infrastructure and the academy so that we could attract and develop young players of sufficient quality to make us competitive on the pitch, and to make money from them in the transfer market that could be ploughed back into the squad - because those profits would count as turnover.

But there's no guarantee our owners would suddenly decide to do this. They'd more likely IMO slash squad spending to comply with the new rules, then stagger on with their current approach to youth development, and simply blame the new rules if/when we ended up in perpetual bottom-half finishes/relegation battles.

Likewise, we've had stagnant commercial revenues for a decade, thanks in part to policies that wilfully minimised the club's revenue streams for the owner's convenience - I don't see these guys turning that around, but I guess they're (finally) going to have to make an effort.
 

twickerspne

Manager
Those parachute payments we never looked likely to get could soon be history - the Prem and EFL are talking about a new "merit-based" system, because if they don't agree a deal, the upcoming Independent Regulator will make one for them:

"The Premier League wants the money it gives to the lower divisions to be based on where they finish in the league table — and for enhanced cost controls to prevent spendthrift clubs wasting the income — before it agrees to increase its payments.

"The EFL leadership would back the idea if it meant the club finishing top of the Sky Bet Championship receives about 1.7 times the amount of the club finishing bottom — a similar ratio to the Premier League. One proposal it has rejected is for the clubs at the top receiving many times the amount of cash as those at the bottom. The plan would have to be agreed by the EFL clubs, but league chiefs would also support new cost controls.

"The merit-based payment idea has backing within the EFL and the Premier League as it should reduce the ‘cliff edge’ between the divisions and also see the controversial parachute payments made to clubs relegated from Premier League greatly reduced.

"The Premier League has said it will give away £1.6 billion to the rest of the football pyramid over the next three years, about 16 per cent of its revenues. Just over half of that is in parachute payments. There is pressure for the distribution to be raised to closer to 25 per cent — another £1 billion or so more."


Rest assured whatever is decided it will try and feather the income nest that is the premier league and clubs recently falling out. The current system is ridiculous. However I fear some US centric idea (given the increased number of Premier teams under US ownership) will try and change this relegation financial metric out of Premier leagues and make the Premier league even more financially protected. . It will kill the game. Much as it had done for the Rugby Championship
 

Thracia

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Interesting comments from Rick Parry, seeming to tie discussions about the future format of the EFL Cup (possible changes to accommodate teams involved in the expanded Champions League from 2024 onwards) in with discussions about the future of Prem parachute payments.

With the government including "proposals to establish an independent regulator of English football" in the Queen's Speech today, there could be some movement on this in the next couple of years.

 
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