Print Topic - Archive

Fishy Forum  /  The New Fishy  /  
Posted by: GollyGTFC, September 21, 2020, 10:40am
I saw on another thread someone stating our hands were tied due to the new Salary Cap and that we could only spend £1.5m on wages. There are exemptions, so here's a full list of Town's squad and which players are and aren't currently included in the Salary Cap calculation.

Player included in Salary Cap

Bilel Mohsni
Danny Rose
George Williams
Montel Gibson
Ira Jackson Jr
Sean Scannell

Player exempt from Salary Cap - Pre-existing contracts

James McKeown
Sam Russell
Luke Hendrie
Elliott Hewitt
Ludvig Öhman
Luke Waterfall
Harry Clifton
James Tilley
Max Wright
Matt Green
James Hanson

Player exempt from Salary Cap - Under 21
           
Ollie Battersby
Joey Hope
Duncan Idehen
Mattie Pollock
Danny Preston (loan)
Jock Curran
Cameron Painter
Luke Spokes
Joe Starbuck
Terry Taylor (loan)
Owura Edwards (loan)
Alhagi Touray Sisay

There's another key exemption that can/will be exploited. Severance pay is not included in the salary cap. So expect clubs to pay up contracts of soon to be out of contract players the day after their final match or if they become injured and won't be back. That also saves the player and club a fair wedge of tax and NI contributions too as well as keeping their Salary Cap calculation down.

Another exemption is any renewal of a contract on the same terms and conditions. So we could give James McKeown a new 10 year contract on the same t's&c's and it wouldn't be included in the salary cap for the whole of that period.
Posted by: jamesgtfc, September 21, 2020, 10:58am; Reply: 1
We are operating to the salary cap but you can bet your bottom dollar many clubs aren't.

Many clubs went on a spending spree before the announcement as it meant they could secure their signature for whatever it cost.

So the salary cap is £1.5m for players aged 22 and above. Aren't the players under contract in the calculation but as a divisional average salary? So if we pay players £1k per week but the divisional average is £2k, we suffer because of it. Salford for example with under contract players on £4k per week would be in a better position because half of that wage is disregarded from the cap.
Posted by: GollyGTFC, September 21, 2020, 11:00am; Reply: 2
Quoted from jamesgtfc
We are operating to the salary cap but you can bet your bottom dollar many clubs aren't.

Many clubs went on a spending spree before the announcement as it meant they could secure their signature for whatever it cost.

So the salary cap is £1.5m for players aged 22 and above. Aren't the players under contract in the calculation but as a divisional average salary? So if we pay players £1k per week but the divisional average is £2k, we suffer because of it. Salford for example with under contract players on £4k per week would be in a better position because half of that wage is disregarded from the cap.


No, pre-existing contracts are exempt.

Salford had 2 players (1 started and 1 on the bench) who are on £10k & £8k a week respectively, but who are exempt.
Posted by: GollyGTFC, September 21, 2020, 11:03am; Reply: 3
Click here for full details of salary cap and exemptions
Posted by: GollyGTFC, September 21, 2020, 11:11am; Reply: 4
Quoted from jamesgtfc
We are operating to the salary cap but you can bet your bottom dollar many clubs aren't.

Many clubs went on a spending spree before the announcement as it meant they could secure their signature for whatever it cost.

So the salary cap is £1.5m for players aged 22 and above. Aren't the players under contract in the calculation but as a divisional average salary? So if we pay players £1k per week but the divisional average is £2k, we suffer because of it. Salford for example with under contract players on £4k per week would be in a better position because half of that wage is disregarded from the cap.


And we are operating to it. We have 7 players under the salary cap who are likely to be on a combined £5-6,000 a week. So our salary cap calculation is £6,000 * 46 weeks = £276,000 of our allowed £1,500,000.
Posted by: pen penfras, September 21, 2020, 11:32am; Reply: 5
That article is wrong, players who were already under contract before the rule are not exempt, they are capped at the divisional average. So say the divisional average is £1k a week and James Hanson is on £2k a week (made up numbers), then Hanson only counts as £1k a week until a new contract is signed. The same rule counts for relegated teams with players under pre existing contract terms.


https://www.efl.com/news/2020/august/squad-salary-caps-introduced-in-league-one-and-league-two/

Quoted Text
Transition arrangements have been incorporated in respect of a Club’s squad salary cap calculation with the key element of these aimed at addressing committed contracts and relegated Clubs. Any contract entered into on or prior to today’s vote will be capped at an agreed divisional average until that contract expires. Moving forwards, Clubs that are relegated will be permitted to cap all contracts at the divisional average prior to the Club’s relegation until those contracts expire.
Posted by: jamesgtfc, September 21, 2020, 12:12pm; Reply: 6
Quoted from pen penfras
That article is wrong, players who were already under contract before the rule are not exempt, they are capped at the divisional average. So say the divisional average is £1k a week and James Hanson is on £2k a week (made up numbers), then Hanson only counts as £1k a week until a new contract is signed. The same rule counts for relegated teams with players under pre existing contract terms.


https://www.efl.com/news/2020/august/squad-salary-caps-introduced-in-league-one-and-league-two/



This is exactly how I understood it. Clubs that signed before the cap could sign a player on £10k per week but in terms of their £1.5m salary budget, it may only account for £1k per week of that.

They would then have a good portion of the salary cap available to sign very few players meaning those new players signed after the cap was agreed will also be on good money.
Posted by: moosey_club, September 21, 2020, 5:17pm; Reply: 7
Quoted from jamesgtfc


This is exactly how I understood it. Clubs that signed before the cap could sign a player on £10k per week but in terms of their £1.5m salary budget, it may only account for £1k per week of that.

They would then have a good portion of the salary cap available to sign very few players meaning those new players signed after the cap was agreed will also be on good money.


Hence those clubs that are
A. Savvy enough to exploit loopholes
And
B. Have financial backing

are actually at an advantage , also its most likely that the same teams were also already in a financially better position than the rest of the teams anyway.
Mansfield, FGR, Salford could have their strongest chance of getting out of this division this season one would think. Very little chance COVID restrictions will massacre their income streams with the money behind them.



Posted by: Gaffer58, September 21, 2020, 6:12pm; Reply: 8
Just out of interest how do Salford afford to pay the stated above contracts when their attendances are a good way below ours, in a normal season. They must either have some very generous backers, I know about the class of 92 and the rich foreign gentleman, but are their commercial department working wonders.
Posted by: louth_in_the_south, September 21, 2020, 6:33pm; Reply: 9
If Salford had 1 player on 10k , another on 8k , I’m guessing the rest of the team would be on salaries ours could only dream off pretty much . It’s really not surprising they beat us 4-0 is it ffs
Posted by: jamesgtfc, September 21, 2020, 9:47pm; Reply: 10
Quoted from Gaffer58
Just out of interest how do Salford afford to pay the stated above contracts when their attendances are a good way below ours, in a normal season. They must either have some very generous backers, I know about the class of 92 and the rich foreign gentleman, but are their commercial department working wonders.


Well out commercial department goes to tatters when Sam goes on holiday.
Posted by: moosey_club, September 21, 2020, 9:49pm; Reply: 11
Quoted from louth_in_the_south
If Salford had 1 player on 10k , another on 8k , I’m guessing the rest of the team would be on salaries ours could only dream off pretty much . It’s really not surprising they beat us 4-0 is it ffs


But in the game they didnt look anything special and it took 3 penalties.....we are still unfit, playing without several first teamers, very young squad so there is hope.   Their left back and central midfielder looked the best players on the park but apart from that there wasnt a huge difference between the teams.
Print page generated: November 25, 2020, 5:18pm