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Premier League Spending Caps


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Same as the NFL and MLB.

Been saying for years this was what all the American funds were aiming for.

Every penny above the basic TV deal is pure profit once this comes in, and as it will scale with the TV deal, even if they kill the league, the owners will still get the gate/merch/Cup/friendly tour money.

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7 minutes ago, Beaconowl said:

IMO there are always ways around such rules, similar to wage caps 

The Americans don't care about winning, they care about the league as a whole and a safe income stream.

So they'll change amortisation, so teams have strong and lean years, spread the wealth, knowing it'll even out as long as they're all safe in the league.

Then a luxury tax to rinse the Arabs.

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9 minutes ago, Tewksbury said:

The Americans don't care about winning, they care about the league as a whole and a safe income stream.

So they'll change amortisation, so teams have strong and lean years, spread the wealth, knowing it'll even out as long as they're all safe in the league.

Then a luxury tax to rinse the Arabs.

Sadly, you are probably right 

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I still prefer the idea of a loss cap, so you can make losses of say 20% of turnover 

So if revenue is 200m, your spend cap is 240m. Your loss limit is 40m. 

If you only lose 20m one season, you can roll that forward to the next plus the 40m 

But any shareholder loans to fund losses have to be converted to equity. 

 

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I’m cautiously in favour.  It should increase the competitiveness of the Premier League, while moving more in the direction of an NFL style model where teams actually make a profit.  It will reduce the Premier League “dominance” of the Champions League…err right.  Does also mean that if we can get into the Premier League, with a decent coach, and a scouting set up worthy of the name, there would be realistic hope of doing more than survive within two or three seasons.

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This explains the glut of American funds looking for clubs recently.

If this passes, it will then filter down the leagues, meaning that every professional club becomes a money printing machine.

 

Also means that there's actually no reason for Chansiri to sell if this is on the horizon as once it kicks in all that sweet, sweet Cat A ticket revenue goes straight into his pocket.

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32 minutes ago, Andyben said:

nope, it means the PL becomes a closed shop and we all just wither and die

Too many Championship clubs getting bought.

With it based on league lowest TV earnings, any club with decent gates will be profitable. 

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