Wage Cap

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Wage Cap

Post by ComeOnYouOs »

I think the wage cap was a terrible idea, and im surprised the club voted for it.

As one of the biggest budgets in league 2, we had an advantage when it came to bringing in new players, because we could offer more money, than most league 2 clubs, and probably a small handful of league 1 clubs....but thats now evaporated, and as the cost of living is higher in London, and your pounds dont go as far, teams outside london have an advantage

By voting in favour of a wage cap, we threw our advantage away IMO
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Re: Wage Cap

Post by HARVEY T DENTON »

Pretty sure our esteemed leaders would have considered such things, after all they’ve been pretty successful in their own businesses. Just a thought.
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Re: Wage Cap

Post by Rich Tea Wellin »

I'm almost certain the rationale for voting for the cap was more of a financial one for the owners rather than the interests of our ability to sign people. I see long term benefits for every club, but agree that we are at a disadvantage now.
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Re: Wage Cap

Post by Sid Bishop »

ComeOnYouOs wrote: Fri Jan 08, 2021 11:00 am I think the wage cap was a terrible idea, and im surprised the club voted for it.

As one of the biggest budgets in league 2, we had an advantage when it came to bringing in new players, because we could offer more money, than most league 2 clubs, and probably a small handful of league 1 clubs....but thats now evaporated, and as the cost of living is higher in London, and your pounds dont go as far, teams outside london have an advantage

By voting in favour of a wage cap, we threw our advantage away IMO
Agree that this wage cap will work in favour of teams in the areas of England where the cost of living is far lower, in this case, London based clubs like Leyton Orient.
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Re: Wage Cap

Post by Adz »

The wage cap is an upper limit, not all clubs will run up to it
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Re: Wage Cap

Post by Top of the JES »

Adz wrote: Fri Jan 08, 2021 11:21 am The wage cap is an upper limit, not all clubs will run up to it
Agree there is no way Barrow, Morecombe and Harrogate will be up at £1.5 million.
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Re: Wage Cap

Post by Oiram »

ComeOnYouOs wrote: Fri Jan 08, 2021 11:00 am I think the wage cap was a terrible idea, and im surprised the club voted for it.

As one of the biggest budgets in league 2, we had an advantage when it came to bringing in new players, because we could offer more money, than most league 2 clubs, and probably a small handful of league 1 clubs....but thats now evaporated, and as the cost of living is higher in London, and your pounds dont go as far, teams outside london have an advantage

By voting in favour of a wage cap, we threw our advantage away IMO
When you walk through the door, your pound’s worth more at Leyton Orient, where else?
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Re: Wage Cap

Post by Real Al »

ComeOnYouOs wrote: Fri Jan 08, 2021 11:00 am I think the wage cap was a terrible idea, and im surprised the club voted for it.

As one of the biggest budgets in league 2, we had an advantage when it came to bringing in new players, because we could offer more money, than most league 2 clubs, and probably a small handful of league 1 clubs....but thats now evaporated, and as the cost of living is higher in London, and your pounds dont go as far, teams outside london have an advantage

By voting in favour of a wage cap, we threw our advantage away IMO
Some socialist you are.
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Re: Wage Cap

Post by Dohnut »

Apple Wumble wrote: Fri Jan 08, 2021 11:10 am I'm almost certain the rationale for voting for the cap was more of a financial one for the owners rather than the interests of our ability to sign people. I see long term benefits for every club, but agree that we are at a disadvantage now.
Almost certainly the case.

We are at a disadvantage now, player-wise, but it’s not our money being used to cover annual debts and maybe for football in general it’s better.

We now, more then ever, rely of the quality of our DoF and Head Coach for success. We can no longer offer better salaries to players whose living expenses will be higher in the London area. So what’s the attraction to move to London and Surrounding area unless they already live there.
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Re: Wage Cap

Post by Still wrong »

ComeOnYouOs wrote: Fri Jan 08, 2021 11:00 am I think the wage cap was a terrible idea, and im surprised the club voted for it.

As one of the biggest budgets in league 2, we had an advantage when it came to bringing in new players, because we could offer more money, than most league 2 clubs, and probably a small handful of league 1 clubs....but thats now evaporated, and as the cost of living is higher in London, and your pounds dont go as far, teams outside london have an advantage

By voting in favour of a wage cap, we threw our advantage away IMO
Clubs will always get around a wage cap.
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Re: Wage Cap

Post by Orient Punxx »

I think you’re wrong there.
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Re: Wage Cap

Post by LittleMate »

Sure £1.5m buys you more in certain areas than others - just look at house prices to begin with - however clubs wage structures and their financial models are also relative to their local areas. A pint of beer in Barrow costs less in Morecombe than Leyton.

If an owner chooses to invest and increase his playing budget beyond normal playing budgets then he's breaking his own clubs financial model, accepting he's throwing away that investment in an attempt to buy his way up a division. That's nothing less than currently happens - but that option is denied to clubs like us that already spend 50-100% more than the Morecombe's and Barrow's of this world.
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Re: Wage Cap

Post by Still wrong »

Orient Punxx wrote: Sat Jan 09, 2021 1:11 am I think you’re wrong there.
😂Naive in the extreme.
There are a million ways of getting around a salary cap.
It happened in the 50 s with the maximum wage.
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Re: Wage Cap

Post by ComeOnYouOs »

Still wrong wrote: Sat Jan 09, 2021 10:01 am
Orient Punxx wrote: Sat Jan 09, 2021 1:11 am I think you’re wrong there.
😂Naive in the extreme.
There are a million ways of getting around a salary cap.
It happened in the 50 s with the maximum wage.
Well name a few then.
You keep saying its easy to get round the cap, so as i say name a few!
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Re: Wage Cap

Post by Still wrong »

ComeOnYouOs wrote: Sat Jan 09, 2021 10:06 am
Still wrong wrote: Sat Jan 09, 2021 10:01 am
Orient Punxx wrote: Sat Jan 09, 2021 1:11 am I think you’re wrong there.
😂Naive in the extreme.
There are a million ways of getting around a salary cap.
It happened in the 50 s with the maximum wage.
Well name a few then.
You keep saying its easy to get round the cap, so as i say name a few!
Too many to mention on here.
But if you seriously think there are not legal ways to bump up an employees salary then you are very very naive.
The only ones who will abide by it are the less ambitious.
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Re: Wage Cap

Post by Still wrong »

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Re: Wage Cap

Post by Still wrong »

Once this nonsense is kicked out will will have a premiership 2 in what is now the Championship.
If clubs want to overspend them let them get on with it, if they go bust relegate them at least two divisions.
Let the market find its level.
This ridiculous interfering never works.
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Re: Wage Cap

Post by Oiram »

Still wrong wrote: Sat Jan 09, 2021 10:40 am Once this nonsense is kicked out will will have a premiership 2 in what is now the Championship.
If clubs want to overspend them let them get on with it, if they go bust relegate them at least two divisions.
Let the market find its level.
This ridiculous interfering never works.
Will who?

What he got to do with the price of rice?
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Re: Wage Cap

Post by Still wrong »

UpminsterO wrote: Sat Jan 09, 2021 10:53 am There is a big difference between the budget for league 1 and 2- bigger than as a % than the marginal difference in quality to survive in league 1
All nonsense.
Clubs that are run by sensible owners survive.
If they go bust, relegate them.
All this ridiculous nonsense about a salary cap, my god it’s like something out of the 1950s.
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Re: Wage Cap

Post by Still wrong »

Oiram wrote: Sat Jan 09, 2021 10:51 am
Still wrong wrote: Sat Jan 09, 2021 10:40 am Once this nonsense is kicked out will will have a premiership 2 in what is now the Championship.
If clubs want to overspend them let them get on with it, if they go bust relegate them at least two divisions.
Let the market find its level.
This ridiculous interfering never works.
Will who?

What he got to do with the price of rice?
We will.
Is that better?
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Re: Wage Cap

Post by Fisch »

Still waiting for a view of how the cap can be dodged. Isn't there something about directors' gifts (or sponsorship perhaps) which artificially raises the declared income of the club thus raising the spending threshold?
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Re: Wage Cap

Post by Still wrong »

Milano wrote: Sat Jan 09, 2021 11:13 am Still waiting for a view of how the cap can be dodged. Isn't there something about directors' gifts (or sponsorship perhaps) which artificially raises the declared income of the club thus raising the spending threshold?
Employing a players wife in one of the owners businesses?
Working from home of course.
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Re: Wage Cap

Post by Thor »

Milano wrote: Sat Jan 09, 2021 11:13 am Still waiting for a view of how the cap can be dodged. Isn't there something about directors' gifts (or sponsorship perhaps) which artificially raises the declared income of the club thus raising the spending threshold?
It’s no longer a percentage of turnover but a flat rate of £1.5m.

As ling said it will be harder for us next season than some others. Long term football at the lower level will become more viable and surely that is a positive step forwards is it not? Short term as clubs adjust and fall into line with the new laws there may be some adjusting to do especially from clubs like us with a stated playing budget far in excess of the cap. That’s life, but people like our owners can now utilise their cash to improve other infrastructure projects instead of spending it on wages. The benefit to our academy could be huge for example as one way to invest in the playing future of the club.
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Re: Wage Cap

Post by Still wrong »

Thor wrote: Sat Jan 09, 2021 1:22 pm
Milano wrote: Sat Jan 09, 2021 11:13 am Still waiting for a view of how the cap can be dodged. Isn't there something about directors' gifts (or sponsorship perhaps) which artificially raises the declared income of the club thus raising the spending threshold?
It’s no longer a percentage of turnover but a flat rate of £1.5m.

As ling said it will be harder for us next season than some others. Long term football at the lower level will become more viable and surely that is a positive step forwards is it not? Short term as clubs adjust and fall into line with the new laws there may be some adjusting to do especially from clubs like us with a stated playing budget far in excess of the cap. That’s life, but people like our owners can now utilise their cash to improve other infrastructure projects instead of spending it on wages. The benefit to our academy could be huge for example as one way to invest in the playing future of the club.
Academy.
You’re joking right?
A complete waste of money in the modern game for a club of our size.
Follow the Brentford model.
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Re: Wage Cap

Post by Thor »

There is a case for both wrong, maximise your return on both opportunities would be the way forwards in my opinion.
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