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[Football] FFP instead of points deduction, a luxury fine !!



North Carolina Supporter

American Seagull
NSC Patron
The Luxury Tax schemes in the NBA and MLB are based on each team’s total for players salaries. They do not impact trading players- just the wages. It seems to me that the leverage that big clubs have in the PL is wielded primarily in the transfer markets - and less so in weekly wages. The NBA, NFL, and MLB rarely compensate other teams for transfers- instead, they “trade” players and future draft picks. The players know the “cap” of each team and the top players try to influence trades.

Those that go over every year (Yankees in baseball and Lakers in basketball) build this in to their budgets… in the NBA, for example, if your total is over the annual amount, you pay 200% then 300% then 400% back for every dollar over. Here is a link that explains:

IMO, a US-styled luxury tax would ultimately benefit the richest clubs far more than those that would get additional payments because the cost of staying competitive would rise each year. There would be no fear of losing points… no shame in cheating…
 




Not Andy Naylor

Well-known member
Dec 12, 2007
8,798
Seven Dials
The system worked so efficiently in Major League Baseball that the Miami Marlins actually budgeted every year for a certain amount of overspend by the New York Yankees coming their way via the luxury tax. One year when the Yankees didn't break through the salary cap it left a bit of a hole in the Marlins' finances.
 


Peteinblack

Well-known member
NSC Patron
Jun 3, 2004
3,625
Bath, Somerset.
The fact that some PL clubs are apparently lobbying for a switch to fines surely shows that they are fearful of a points deduction - which is precisely why the current system should be retained.

Fines are no deterrent to arrogant plutocratic clubs like Chelsea or Man City.
 


hans kraay fan club

The voice of reason.
Helpful Moderator
Mar 16, 2005
61,379
Chandlers Ford
All the time UEFA have THEIR financial rules in place, which clubs need to meet, in order to enter their competitions, it doesn't really matter what daft ideas the greedy clubs here come up with.
 


Acker79

Well-known member
NSC Patron
Nov 15, 2008
31,896
Brighton
The basis of FFP originally was to keep teams spending within their means, and to keep them on a path where they're not losing millions each season, so to introduce a fine for overspending is just idiotic. Defeats the whole purpose. The smaller clubs will be kept in their lane because they cant afford to overspend and then get a fine, as it would put them in meaningful financial trouble, but the big oil clubs can just think 'ah f*** it, whats another XXX million spent this year'.
That was the publicly stated reason.

There are some who believe it was brought in to stop people buying smaller clubs and pumping money into them, disrupting the status quo for the big clubs. Which is probably the main reason this (reportedly) isn't currently getting enough support to be brought in.
 




Baldseagull

Well-known member
Jan 26, 2012
10,959
Crawley
Depends on what the point of the spending limits are.
If it is to stop clubs that have wealthy backers cash doping, then fines distributed to other clubs might work if they are heavy enough. If it is to prevent clubs getting into massive unpayable debt, fines won't help.
I think clubs like Man Utd see the rules as a way of stopping clubs like Newcastle displacing them.

The problem with most measures, is that the clubs that got relegated, or pushed out of champions league places because another team or 5, financially doped their squad, still lose out, and those that cheated still gained from doing so.
 


maffew

Well-known member
Dec 10, 2003
8,873
Worcester England
Fines and points deductions aren't enough normally. They've either so much money that it doesn't really matter, or enough points that it doesnt really matter either.

Simply knocking them down a division or two is the way forward
 


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