Proposed new cost control measures - New Deal with the Premier League

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/leicester-city-horrendous-position-chairman-8796817

ByJamie Gardner, PA Chief Sports Reporter
11:58, 2 OCT 2023
EFL chairman Rick Parry has spoken about the urgent need to rebalance football's financial distribution.

Championship clubs have been placed in a “horrendous position” over proposed new cost control measures, EFL chairman Rick Parry has said.

EFL clubs - including Leicester City - met last Thursday to discuss the detail of the proposed ‘New Deal’ with the Premier League, which covers a new financial settlement, cost controls and the domestic calendar.

The PA news agency understands the EFL has concerns over a proposal to allow clubs relegated from the Premier League – who are also set to continue to benefit from parachute payments in some form – to spend 85 per cent of their revenue on squad costs.

 

The EFL is understood to favour a much lower figure for its clubs in order to promote sustainability and help them prepare for the introduction of the independent regulator – closer to the 70 per cent ratio coming in at UEFA level.

“It’s not an exaggeration to say that the dilemma facing Championships clubs is that they pretty much have to decide whether they want to be sustainable or competitive,” Parry said at the ‘Power of Football’ event at the Conservative Party Conference.

“The two are pretty much mutually exclusive, which is a pretty horrendous position to be in.”

Premier League clubs outside of the traditional ‘big six’ see the higher-ratio percentage as essential to helping them compete with those in regular receipt of Champions League cash while within the top flight, and to ensure the the league stays competitive and therefore attractive to broadcasters.

Sources have also said the key principle behind keeping the 85 per cent ratio upon relegation is to help clubs work to reduce their cost base.

Parry added: “It’s going to be difficult to persuade 14 clubs in the Premier League to vote for major change and to support those lower down.

“They tend to forget sometimes where they’ve come from and, bluntly, where they’re likely to go back to relatively soon, but that’s the nature of the game.

“Nobody wants disproportionate intervention. Nobody wants to dumb down the Premier League, this is about making clubs sustainable, it’s not about putting them out of business.”

The EFL is now engaging in targeted consultation with its clubs before it resumes talks with the Premier League over ‘New Deal’.

[Stadt]

2 minutes ago, davieG said:

“The two are pretty much mutually exclusive, which is a pretty horrendous position to be in.”

I hate this attitude in football.

 

A bag of money's never scored a goal. For every club that's spent their way to success there's 5 that haven't. Did Brentford throw a load of money at it? Did Luton? Clubs are extremely wasteful and act as if they'd succeed if they just threw another £10m at it.

[MPH]

5 hours ago, Stadt said:

I hate this attitude in football.

 

A bag of money's never scored a goal. For every club that's spent their way to success there's 5 that haven't. Did Brentford throw a load of money at it? Did Luton? Clubs are extremely wasteful and act as if they'd succeed if they just threw another £10m at it.

 

I see this proposal as a way to make it easier for clubs to bounce straight back into the premier league.. in other words, it’s the premier league  trying to look after its own with no regard for the smaller clubs… big clubs will do well, small clubs will do worse. Same old. Same old self appreciation society.

Edited 2 October 2023 by MPH

[blaaklint]

5 hours ago, Stadt said:

I hate this attitude in football.

 

A bag of money's never scored a goal. For every club that's spent their way to success there's 5 that haven't. Did Brentford throw a load of money at it? Did Luton? Clubs are extremely wasteful and act as if they'd succeed if they just threw another £10m at it.

its been found that wage bill and league position are highly correlated. ofc, its not clear which drives the other - do clubs finish high bc they pay the highest wages, or is it the other way around?

 

but either way, there's certainly a case to be made that, generally speaking, sustainability (if taken to mean low wage budgets) is the enemy of success.

 

there's outliers, but richer clubs are better than poorer ones. unfortunately, players are just bags of money really.

[sylofox]

The whole system is set up to keep the big boys at the top. Dont let the little clubs in. We smashed that in 2016 and they all spent because of it.

 

Yes miss managed whatever you call it we tried to compete. And it went wrong. You can't fight these guys unless you do it in force.

 

The fans stopped the break anyway league for the travelling but not to stop the drain.

 

Let them go n fvck off but don't let them come back.

 

Football in this country would be better without them. More clubs could compete. Bring back a competitive league as opposed to a joke.

[Tom12345]

“Premier League clubs outside of the traditional ‘big six’ see the higher-ratio percentage as essential to helping them compete with those in regular receipt of Champions League cash while within the top flight, and to ensure the the league stays competitive and therefore attractive to broadcasters.“

 

Ironically, this is true. This is the equaliser in the Premier League for the 14 clubs so that they can spend the money knowing that if they still get relegated they will not go to bankruptcy immediately. This is what we benefited from and why the Premier League is so fun to watch and so competitive because even Chelsea can be down there in the bottom half of the table at the moment. This can never happen in the German or the Spanish leagues for example where all teams below the top 3 are just too much of a pushover.

 

The 85% rule, which we currently benefit from, therefore ironically makes the whole Premier League more competitive.

 

The much bigger problems are:

- How do we control spending by the top top clubs because it is this that has led to the crazy spending and the ever increasing gap. In America, there would have been some spending cap.

- For the Championship, how do we ensure there is more money available to the clubs outside of the relegated clubs from the Premier League.

 

Now I am obviously biased, I can see why they want to target the spending by the relegated clubs in order to make the rest more competitive. There is also an element of truth to that as well. But I am happy that we got to keep at least half the squad we kept. We did sell Maddison and Barnes for a lot of money (though we did pretty poorly in my view given today’s prices). If we were forced to sell more because of the rule change, who knows, maybe we would have gotten even less for our players as other clubs would know we need to firesale. Also, we could be stuck here for a long time - an even bigger consequence than it already is. So I think this is a difficult one and we should for the time being resolve the first two bigger problems I highlighted above first.

 

 

 

[Tom12345]

“The PA news agency understands the EFL has concerns over a proposal to allow clubs relegated from the Premier League – who are also set to continue to benefit from parachute payments in some form – to spend 85 per cent of their revenue on squad costs.

 

The EFL is understood to favour a much lower figure for its clubs in order to promote sustainability and help them prepare for the introduction of the independent regulator – closer to the 70 per cent ratio coming in at UEFA level.”

 

Actually, further to my post above, does anyone know what the current ratio is? Is it 85% which I assumed in my post or is it even higher?

[Tom12345]

https://www.forbes.com/sites/zakgarnerpurkis/2023/04/29/why-relegation-for-leicester-city-this-year-wont-be-a-disaster/amp/

[Vlad the Fox]

Again another proposal that allows the cartel to continue in their ways. How about a proposal that spreads the wealth across all divisions so that when teams are relegated they drop in to a league that is already operating at a much closer level. As mentioned this could encourage fire sales to comply and will weaken the the ability of promoted clubs to compete in the premier league with the threat of relegation and its consequences hanging over every decision they make. Taking a bit more of what ever competitiveness is left away. 
 

Why can’t anyone ever come up with a proposal that is actually good for the whole of the game and forces everyone to comply. Not that certain clubs would allow it but it would be nice to see some new and good ideas.

[davieG]

It seems to me the other 14 whoever they are at the time and that includes LCFC  vote as if they're going to always be in the PL - Turkey's voting for Christmas syndrome.