Unlike some, I bear no particular ill will -- off the pitch -- to Crystal Palace but, if they get away with paying creditors 1p in the £ before continuing with business as usual, it will bring shame on football. Again. It's clear to me that football's finances need radical reform, so I put the following ideas forward for discussion. They should apply throughout the pro game, from Sky 4 to the base of the pyramid.
1. Footballing creditors should have no precedence.
2. In the event of administration, a club should be relegated by 2 divisions, and a ban on paying transfer fees should be applied until all creditors are repaid in full. Any transfer fees received should go to the creditors.
3. The PL's share of TV money should be evenly distributed among PL clubs.
4. Parachute payments should be abolished and the money previously allocated to them should be evenly distributed between Championship clubs.
5. A salary cap for players, as a % of normal trading turnover.
6. A ban on all payments to players other than contracted salaries and bonuses -- eg, no signing-on fees.
7. A ban on all payments to agents by clubs.
8. All clubs must be trading at break-even or better over any 3 year period by a specified date (say, 2014).
9. All player contracts should contain provision for salary reduction or termination of contract in the event of relegation.
10. Any player at a PL club who has played in fewer than (say) 25% of the games for which he was available should be entitled, should he so choose, to sign for a club outside the PL on a free transfer.
Let's have an honest game at last.
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Comments
Deffo.
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take us for example; if we went into administration i would hope that they would look favourably on the fact that we've tried to avoid administration and instead sort the mess out.
Palace have dodged a bullet, I think a club this season won't be so lucky.
If the Inland Revenue manage to claim unpaid tax from the league (therfore the clubs that are not in Administration themselves) then the League will increase the punishment and/or insist that the new owners take on the current debts or the club ceases to exist.
The current system is disgraceful and Palace's 1p in the £ will look so insulting when they go on a spending spree this summer.
Why we're on the subject, well done to the Palace fans for raising the £16k owned to St. John's ambulance.
Why we're on the subject, well done to the Palace fans for raising the £16k owned to St. John's ambulance.[/quote]
yes well done on the St John Ambulance payment. I totally agree with the comment about Ambrose and Speroni. It is the same as Southampton, who would not be as strong in the third tier if it had not been for administration. The rules should be that all creditors should receive a minimum amount owed in the CVA, say 50p in the pound, even then it is not right.
I wonder what the thoughts of the new owners are concerning the 29 who lost their jobs?
Quite happy about it I would of thought, no dirt on their hands.
Unfortunatley the rule was a 10 point deduction and Palace, Leeds and Southampton used that to their benefit.
2. In the event of administration, a club should be relegated by 2 divisions, and a ban on paying transfer fees should be applied until all creditors are repaid in full. Any transfer fees received should go to the creditors.
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In theory this is a good idea, but that would mean that administration is essentially then end of a football club - the gulf between divisions is so vast
Also relegating the club two divisions would potentially harm the creditors the most, and they are the ones that are penalised as it stands now.
You can see why the authorities have not done anything about it can't you?
The ten points failed to punish Palace this season and even if you assume that with the 10 points Southampton would have been promoted last season that fails to take into account the fact that they swapped c.£20m of debt with c.£3m of new player signings.
Basically up to now Administration has been a benefit to most, if not all, the clubs that have used it.
Sadly that benefit will continue as borrowing will now be harder than ever and the clubs that have been into Administration, by default, have smaller debts than those that haven't.
makes sense to me that clubs should be pushed down 2 divisions when found out as they've been competing on the field and for signings without the ability pay their bills
Simple solution is that any club that cannot show it can pay it's bills for the next couple of seasons should be forced to pay for any players up front or simply have a transfer embargo slapped on until they sort it out