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Salary Cap Reduction
Discussion started by ukms , 09 June, 2020 06:25
Salary Cap Reduction
ukms 09 June, 2020 06:25
BBC reporting salary cap being cut by £1.4 million.

[www.bbc.com]

Re: Salary Cap Reduction
Geewhiz50 09 June, 2020 09:52
Looks more like a PR exercise than an attempt to deal with the recommendations of Lord Myner's report. The cap will not affect any existing contracts and may be reversed once the clubs' revenues start to increase again. It also does not impact the 2 marquee players exemption.

Still, I suppose it could be reviewed as an attempt albeit a watered-down and feeble effort.

I may be cynical, but in practice I don't see how salaries can effectively be reduced once they have been allowed to escalate. To quote an old saying - the cat is out of the bag.(Sm103)

Re: Salary Cap Reduction
bigfecker 09 June, 2020 10:29
Is this why the cheats have been signing up players until 2024, to get around the cap as the contracts are already signed?

If this cap limit sticks, big IF, then I can see squads being made up of a top 23 and the rest youngsters and cheap players.

Re: Salary Cap Reduction
neils 09 June, 2020 10:40
Quote:
Geewhiz50
Looks more like a PR exercise than an attempt to deal with the recommendations of Lord Myner's report. The cap will not affect any existing contracts and may be reversed once the clubs' revenues start to increase again. It also does not impact the 2 marquee players exemption.
Still, I suppose it could be reviewed as an attempt albeit a watered-down and feeble effort.

I may be cynical, but in practice I don't see how salaries can effectively be reduced once they have been allowed to escalate. To quote an old saying - the cat is out of the bag.(Sm103)

The Myners Report did not cover Salary Cap or Marquees. It was not included in his brief although he did comment. None of his recommendations covered actual amounts despite what he might think.

Re: Salary Cap Reduction
John Tee 10 June, 2020 08:23
Quote:
bigfecker
Is this why the cheats have been signing up players until 2024, to get around the cap as the contracts are already signed?
If this cap limit sticks, big IF, then I can see squads being made up of a top 23 and the rest youngsters and cheap players.

Is that right..because if it is then signing up is the way around it.

I took it to mean that by the date, the new cap value will need to be adherred to. If you have spent too much on certain players, then that squeezes what you can spend on the squad as a whole surely?

Re: Salary Cap Reduction
neils 10 June, 2020 09:51
Remember the cheats are out the league and have to show they comply to get back in.

Re: Salary Cap Reduction
Marlow Nick 10 June, 2020 11:24
The interesting bit is how quickly and effectively Lord Myner's recommendations are implemented. If they are rolled out with real teeth then several clubs, including I suspect Saracens, may find the effective reduction is a lot more than £1m because hopefully many of the dodgy loopholes will be closed down. Saracens' apologists repeatedly point out how small the overspend was for which they were found guilty. My suspicion is there was a whole lot more spend that couldn't be proven or was in a grey area hence their unwillingness to open up the accounts.

Re: Salary Cap Reduction
Dazthelion 13 June, 2020 18:16
Really torn on the RPA complaints. Treat the players with respect, yes. So maybe the process could have been better. But I donít see what other outcome they could hope for. Clubs werenít making money before and COVID-19 has surely decimated their finances.

The options are carry on contract as was and your Club potentially goes bust. Renew contracts of top players at similar levels, but shrink the squad which reduces player welfare or take a risk introducing Academy players before theyíre Physically ready.

Assuming theyíre honouring actual contracts in place I donít really get what they want without it being just short term selfish demands.

Ultimately they donít earn a patch on footballers but the top players, often overseas players, and their Agents have benefitted from excessive wage inflation for the past few years with the Saracens factor a large contributor.

Itís unfair to the steady squad player, but it sounds like they never got a fair share before this either.

Talk of player rebellion isnít going to improve the situation. Itíll just delay the restart, Gwen the product and weíll see even less money come into the game.

Re: Salary Cap Reduction
Wasp222 14 June, 2020 09:11
Quote:
Dazthelion
Really torn on the RPA complaints. Treat the players with respect, yes. So maybe the process could have been better. But I donít see what other outcome they could hope for. Clubs werenít making money before and COVID-19 has surely decimated their finances.
The options are carry on contract as was and your Club potentially goes bust. Renew contracts of top players at similar levels, but shrink the squad which reduces player welfare or take a risk introducing Academy players before theyíre Physically ready.

Assuming theyíre honouring actual contracts in place I donít really get what they want without it being just short term selfish demands.

Ultimately they donít earn a patch on footballers but the top players, often overseas players, and their Agents have benefitted from excessive wage

inflation for the past few years with the Saracens factor a large contributor.

Itís unfair to the steady squad player, but it sounds like they never got a fair share before this either.

Talk of player rebellion isnít going to improve the situation. Itíll just delay the restart, Gwen the product and weíll see even less money come into the game.

Good points it doesnít help that bt will reduce the amount on offer for broadcast rights. The viewing numbers havenít been as much as they hoped. I think itís on par with league one football. The biggest numbers came from the cheats games . The contract expires at the end of the season.

Re: Salary Cap Reduction
neils 14 June, 2020 09:35
BT offered 30% increase but it was declined in the hope Sky would offer more. Sky seeing BT removed wouldn't even meet the current contract value. And that was before Corvid.

Re: Salary Cap Reduction
westwaleswasp 14 June, 2020 12:02
On a personal level, if BT do not have the rugby, I am not going to be renewing. Their soccer portfolio is decent, but not even 20 a month decent. What they have done is get just enough of other sports - away Ashes tours, club rugby, etc. to force people who like more than one sport to sign up. Overall it is reasonable value, but if you take out one plank what is left is not much cf Sky.
The nightmare scenario is that BT keep the Euro fixtures and lose the rest leaving bt with both Euro and FA cup soccer and rugby, which are endeavours that by definition often end very early if you support a particular team. I watch non Wasps Euro matches because they are there, but I don't have much interest in paying 20 or more a month so that from Feb to Sept I can watch Leinster v Munster or AC Milan vs Barca. Of course if you get a match where you can have a reason to support one team it is different, but whereas every league game has a Wasps interest, that is not true of knockout matches.

Re: Salary Cap Reduction
SimonG19 14 June, 2020 13:18
Quote:
westwaleswasp
On a personal level, if BT do not have the rugby, I am not going to be renewing. Their soccer portfolio is decent, but not even 20 a month decent. What they have done is get just enough of other sports - away Ashes tours, club rugby, etc. to force people who like more than one sport to sign up. Overall it is reasonable value, but if you take out one plank what is left is not much cf Sky.
The nightmare scenario is that BT keep the Euro fixtures and lose the rest leaving bt with both Euro and FA cup soccer and rugby, which are endeavours that by definition often end very early if you support a particular team. I watch non Wasps Euro matches because they are there, but I don't have much interest in paying 20 or more a month so that from Feb to Sept I can watch Leinster v Munster or AC Milan vs Barca. Of course if you get a match where you can have a reason to support one team it is different, but whereas every league game has a Wasps interest, that is not true of knockout matches.

If it comes to it WWW tell BT you want to cancel and they will almost certainly offer you a much reduced offer to stay. I'm currently on a two-year contract paying £4/month for it.

Re: Salary Cap Reduction
Wasp222 15 June, 2020 10:29
Quote:
neils
BT offered 30% increase but it was declined in the hope Sky would offer more. Sky seeing BT removed wouldn't even meet the current contract value. And that was before Corvid.

The rumour was it was a decrease from 40 million to 25 million. Letís see what happens. The 30% was for the current deal but they havenít hit the viewing figures they expected.

Re: Salary Cap Reduction
neils 15 June, 2020 11:07
According to TRP BT offered a straight 30% increase but Childs declined without telling the clubs thinking Sky would offer more. However he was mistaken as Sky realising no competition won't even match the existing deal. The clubs are, apparently, a little angry.

Re: Salary Cap Reduction
MarleyWasp 15 June, 2020 18:50
I find the lack of awareness in sport of Sky's change of focus baffling. When Comcast brought Sky they wanted a change of focus with Sport. They felt Sky had been paying over the odds for sports with low viewing figures and that they'd rather invest this money in original programming instead.

This was part of the reason why Sky lost the rights to show Spanish football two years ago; they did bid but the bid was much lower than the previous bid. It was a similar situation with the Top14. Canal+ brought the international distribution rights thinking they would be able to sell the rights in the UK to Sky for a lot. The reality is Sky's viewing figures for the Top14 weren't great so the figure they had in mind was much lower than what Canal+ wanted and as a result the Top14 no longer features on UK TV.

Darren Childs is from a TV background, so quite why he thought Sky would bid more than the 30% increase I don't quite know.

I wouldn't be surprised if we end up with some obscure company buying the rights with online streaming only for a few years.

Re: Salary Cap Reduction
OldMarovian 15 June, 2020 21:22
Quote:
MarleyWasp
I find the lack of awareness in sport of Sky's change of focus baffling ...
Darren Childs is from a TV background, so quite why he thought Sky would bid more than the 30% increase I don't quite know.

I wouldn't be surprised if we end up with some obscure company buying the rights with online streaming only for a few years.

Great post. I'd add to that that the lack of major sponsor for the European competition and the massive loss of sponsorship value to the 6 Nations because Wales and Scotland rejected RBS increased offer when it was on the table (waiting for the same mythical big beast; Amazon, Google, etc to pay over the odds for the rights) should have been major flags that the wind had changed and to get any deal over the current one was a good deal. The answer re Childs is presumably because he was/is sh*t at his job? his idiotic statement that rugby would be one of the first sports to return rather endorses him as not being the sharpest pencil in the case.

Re: Salary Cap Reduction
westwaleswasp 16 June, 2020 16:43
Quote:
SimonG19
Quote:
westwaleswasp
On a personal level, if BT do not have the rugby, I am not going to be renewing. Their soccer portfolio is decent, but not even 20 a month decent. What they have done is get just enough of other sports - away Ashes tours, club rugby, etc. to force people who like more than one sport to sign up. Overall it is reasonable value, but if
The nightmare scenario is that BT keep the Euro fixtures and lose the rest leaving bt with both Euro and FA cup soccer and rugby, which are endeavours that by definition often end very early if you support a particular team. I watch non Wasps Euro matches because they are there, but I don't have much interest in paying 20 or more a month so that from Feb to Sept I can watch Leinster v Munster or AC Milan vs Barca. Of course if you get a match where you can have a reason to support one team it is different, but whereas every league game has a Wasps interest, that is not true of knockout matches.

If it comes to it WWW tell BT you want to cancel and they will almost certainly offer you a much reduced offer to stay. I'm currently on a two-year contract paying £4/month for it.

Thanks, I might try that....

Re: Salary Cap Reduction
SimonG19 17 June, 2020 13:54
Quote:
MarleyWasp
I find the lack of awareness in sport of Sky's change of focus baffling. When Comcast brought Sky they wanted a change of focus with Sport. They felt Sky had been paying over the odds for sports with low viewing figures and that they'd rather invest this money in original programming instead.
This was part of the reason why Sky lost the rights to show Spanish football two years ago; they did bid but the bid was much lower than the previous bid. It was a similar situation with the Top14. Canal+ brought the international distribution rights thinking they would be able to sell the rights in the UK to Sky for a lot. The reality is Sky's viewing figures for the Top14 weren't great so the figure they had in mind was much lower than what Canal+ wanted and as a result the Top14 no longer features on UK TV.

Darren Childs is from a TV background, so quite why he thought Sky would bid more than the 30% increase I don't quite know.

I wouldn't be surprised if we end up with some obscure company buying the rights with online streaming only for a few years.

Probably an obscure company with Mr Childs as a director!


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