So what are the salary cap rules

Talk about anything to do with Cheltenham Town, CTFC 500 Club, League 1, ex players & Managers

Moderators: Admin, Ralph, asl, Robin

Post Reply
andgarod
Posts: 1332
Joined: 19 May 2015, 18:31
In the most recent video GJ says the club is on the edge of the salary cap.
So what are the rules and what is the punishment for going over the cap
Top
User avatar
Shade
Posts: 17002
Joined: 27 Sep 2010, 13:02
Location: Cheltenhamshire
55% off the total revenue is the salary cap as stated in every article I've seen about the Liam Davis/Robins Trust today.

Clubs who fail to adhere to the regulations are likely to be handed a transfer ban as a first sanction, with possible points deductions for major offenders.
Top
PaulGodfrey
Posts: 198
Joined: 28 Dec 2009, 22:50
Clubs have to put in submissions twice a season regarding their funding, playing budgets etc. Once the 55% limit is reached the EFL stop accepting new player registrations until a club has freed up some funds (e.g. by moving players out) or secures additional funding. I think most people felt that Kyle Wootton would be the final signing of the transfer window but when Liam Davis became available it was a great opportunity to bring in a highly experienced player who could make a difference so further efforts were made to accommodate another signing. This latest investment from the Trust has proved a great help in making it happen.
Top
User avatar
Shade
Posts: 17002
Joined: 27 Sep 2010, 13:02
Location: Cheltenhamshire
Thanks Paul. Honest question; In GJ's video yesterday about signing Liam Davis, he mentioned he knows (or maybe thinks) a couple of clubs are over the spending cap and (tongue in cheek) hopefully they'll get a points deduction. How could that be the case if the EFL stop taking new player registrations when they've reached their limit?
Top
andgarod
Posts: 1332
Joined: 19 May 2015, 18:31
I dont always believe what GJ says, he can be a little mischievous. I cant wait for him to reveal who the mole is!
Top
User avatar
Shade
Posts: 17002
Joined: 27 Sep 2010, 13:02
Location: Cheltenhamshire
That's kind of what I was trying to find out :lol:
Top
Jerry St Clair
Posts: 1674
Joined: 15 Aug 2011, 16:40
Shade wrote:Thanks Paul. Honest question; In GJ's video yesterday about signing Liam Davis, he mentioned he knows (or maybe thinks) a couple of clubs are over the spending cap and (tongue in cheek) hopefully they'll get a points deduction. How could that be the case if the EFL stop taking new player registrations when they've reached their limit?
This website seems to provide a pretty good summary:

http://www.financialfairplay.co.uk/scmp.php" onclick="window.open(this.href);return false;
The process is interactive with clubs providing the Football League with projections for the spending for the coming season. During the season the clubs provide regular updates on their Turnover and wage bill. Any club that is forecasting a wage spend within 5% of the figure will be scrutinised more closely. Where a club is on course to exceed the limits, the Football League will apply a Transfer Embargo. Crucially, a club doesn't have to overspend to incur the embargo, it only needs to shown to be heading for an overspend. This interactive approach enables clubs to increase their wage bill if their circumstances improve - a successful cup run will generate increased income and the Football League may be able to sanction additional wage spend. Because SCMP doesn't rely on the retrospective scrutiny of club accounts, it is also extremely effective at stopping overspend before the spending actually occurs (something that has been a problem for the Championship's version of FFP).
Top
User avatar
Shade
Posts: 17002
Joined: 27 Sep 2010, 13:02
Location: Cheltenhamshire
Jerry St Clair wrote:
Shade wrote:Thanks Paul. Honest question; In GJ's video yesterday about signing Liam Davis, he mentioned he knows (or maybe thinks) a couple of clubs are over the spending cap and (tongue in cheek) hopefully they'll get a points deduction. How could that be the case if the EFL stop taking new player registrations when they've reached their limit?
This website seems to provide a pretty good summary:

http://www.financialfairplay.co.uk/scmp.php" onclick="window.open(this.href);return false;
The process is interactive with clubs providing the Football League with projections for the spending for the coming season. During the season the clubs provide regular updates on their Turnover and wage bill. Any club that is forecasting a wage spend within 5% of the figure will be scrutinised more closely. Where a club is on course to exceed the limits, the Football League will apply a Transfer Embargo. Crucially, a club doesn't have to overspend to incur the embargo, it only needs to shown to be heading for an overspend. This interactive approach enables clubs to increase their wage bill if their circumstances improve - a successful cup run will generate increased income and the Football League may be able to sanction additional wage spend. Because SCMP doesn't rely on the retrospective scrutiny of club accounts, it is also extremely effective at stopping overspend before the spending actually occurs (something that has been a problem for the Championship's version of FFP).
Thanks for that. So I guess that if anyone has gone over in January it's because they've unexpectedly splurged big and the EFL weren't expecting it the last time they checked the books.
Top
Post Reply