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Nice one Mr G

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Pool name: coysdc
Pool code: tunabane

Good read!

A good read and, after watching Rugby Club last night and finding myself agreeing with Huey, Duey and Luey regarding the problems found with simply increasing the salary cap. It aint that simple. Where would prem teams find the extra cash? If they had to find bigger better sponsors, we may find ourselves falling into, and drowning, in the wendyball pit where all teams are losing huge amounts of money each year, prima dona players, huge inflation on season ticket prices etc.
From a very selfish perspective, Saints done really well this year in their European campaign and I think we can do one better next season as the team grow in confidence so I am more than happy with our lot at this time.

StA thats why I suggest the cloth cut to suit method if there is any increase, in footie that might have saved the likes of Portsmouth not from relegation as they would find their own level as their income would dictate but certainly from bancruptcy. Clubs should be stringently audited so they are not spending what they haven't got and therefore not putting the club and the livelihood of all their employees in danger, and thats before you think about the grief for supporters.

It might also encourage the hand to mouth clubs that survive by and large on the RFU and television money to start looking to increase their revenue a bit more, the more you make the more you can spend on players.

Now i know some still like the cap because of the level playing field it intends to create (same clubs still win everything though) but I can't remember anyone round these neck of the woods declaring how unfair it was when we won Div One at a canter. Should it really be any different in the premiership?

Chris, how do you square the need for clubs to be financially strong in the eyes of the auditors whilst at the same time pressing them to spend money on stadium improvements which could push them into a loss making situation until the capital cost is recovered?

Not a case of being financially 'strong' Stockers just a case of heading things off at the pass before having another Richmond or London Scottish scenario.

But simply yes if you haven't got it you cannot spend it and that goes for every walk of life but i'm not for others being held back purely because others cannot compete financially.

But then if your benefactors (and i'd count shareholding supporters in this) knew you could employ better playing staff by better stadia and more bums on seats then perhaps they would underwrite those improvements. What cannot let to be happen though is that clubs say yes we'll make improvements but with no guarantee of Prem rugby we want ringfencing.

Seem to remember in recent years two quite big clubs with their own grounds and a fan base built up around improved stadia going down and not doing too badly out of it long term. Why not others?

IMO it is simple economics. There is barely any profit being made so spending more money on the squad will lead to further debt. There is also the assumption that a bigger budget for salaries will lead to an influx (or retention) of better players. The problem is that if you increase the budget then the existing players push for more salary and you end up with minimal incremental improvement.

If you get rid of the cap you end up with a lot of short term spending. It is a bit like our recent governments answer to the recession..spend more money. This has led to a debt level that may take 20 years to get out of and the same could be true amongst the GP sides. Bath have a new owner who could probably bankroll a new stadium and another £5m per season for players etc, but what happens when he realises he will never get a return on his investment or his circumstances change. this happened with Sir John Hall at Newcastle. Clubs would end up saddled with crippling debts and the game would suffer accordingly.

Yep thats why I said cutting the cloth to suit and its not all about spending profit per se, you can speculate (and thats all you are ever doing signing players, ask Wuss about Rico Gear) to accumulate just as any other business does in investing in new equipment but that doesn't mean breaking the bank.

As for any system that is introduced to control a commodity(ie players wages, however highly they are paid) by a closed group of companies, well I wonder how that would stand up in court if someone challenged it.