EFL Statement: Changes to financial controls in Leagues One and Two approved
Comments
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Sounds like less money from Cup Comps can be attributed towards player costs as well as including U21's (who have played a certain number of games) in the wages column whereas they didn't before.
Looks like the owners will have to putting even more of their money in just to stand still. I hope Methven is teflon coated.0 -
So what was revealed at Bromley Addicks a few months ago.
As I understand it, it will be much harder to do an Ipswich/Birmingham by pumping in unlimited millions when in League 1 as equity.
Instead, we have to generate more income if we want to spend NEXT SEASON.
In the short term our owners can still spend as they wish this January.
Half and half scarves anyone?5 -
Does make the big Wrexham push more understandable0
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Unfortunately unless I missed it in that link it doesn’t really expand on the statement ‘a staggering of the amount of owner equity injections that can be included in the calculation’.Henry Irving said:So what was revealed at Bromley Addicks a few months ago.
As I understand it, it will be much harder to do an Ipswich/Birmingham by pumping in unlimited millions when in League 1 as equity.
Instead, we have to generate more income if we want to spend NEXT SEASON.
In the short term our owners can still spend as they wish this January.
Half and half scarves anyone?I am curious as to just how different that will be given equity being injected (and not directors loans) are to my mind a good thing and a demonstration of faith0 -
Birmingham's expenditure was ludicrous, something had to be done when a L1 club could get away with expenditure that a Championship side wouldn't be allowed to spend.Henry Irving said:So what was revealed at Bromley Addicks a few months ago.
As I understand it, it will be much harder to do an Ipswich/Birmingham by pumping in unlimited millions when in League 1 as equity.
Instead, we have to generate more income if we want to spend NEXT SEASON.
In the short term our owners can still spend as they wish this January.
Half and half scarves anyone?4 -
Can't National League spend more than League 2?killerandflash said:
Birmingham's expenditure was ludicrous, something had to be done when a L1 club could get away with expenditure that a Championship side wouldn't be allowed to spend.Henry Irving said:So what was revealed at Bromley Addicks a few months ago.
As I understand it, it will be much harder to do an Ipswich/Birmingham by pumping in unlimited millions when in League 1 as equity.
Instead, we have to generate more income if we want to spend NEXT SEASON.
In the short term our owners can still spend as they wish this January.
Half and half scarves anyone?0 -
Bollocks, our super rich billionaire backers were planning to spend millions next summer rebuilding the squad10
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Then they will just have to move it forward 6 months and spend big next month.BigRedEvil said:Bollocks, our super rich billionaire backers were planning to spend millions next summer rebuilding the squad0 -
BBC article:-
Clubs in Leagues One and Two will be restricted in the amount of money put into the club from owners that can be spent on player wages and transfer fees from the 2025-26 season.
Under new rules sides will only be able to spend a proportion of any investment over £500,000.
Owners in League One putting £1m or more into a club will only be able to spend 60% on player-related expenditure while League Two sides will only be permitted to spend 50%.
The rules bring equity investment, where owners buy shares in a club, into line with the English Football League's Salary Cost Management Protocol (SCMP) - part of Financial Fair Play regulations to help control clubs' financial losses.
Under the current SCMP rules, League One sides can spend 60% of turnover on wages and transfer fees and League Two sides 50%, but 100% of any equity investment.
Another change to the rules means that only 60%, in League One, and 50%, in League Two, of extra football income - such as prize money, cup earnings or transfer fees received - will be able to spent on player-related expenditure, whereas previously all of this money was able to be spent on the squad.
It means that should an owner of a League One side invest £100m in their club they could only spend just over £60m on players.
Owners can still spend an unlimited amount of money in non-player related costs such as infrastructure improvements or community projects.
It comes as more and more new owners have taken over EFL sides - most notably in League One with the high-profile takeovers of Birmingham City and Wrexham.
Blues spent a reported League One record fee of £15m on Fulham's Jay Stansfield in the summer as their ownership group, which includes NFL legend Tom Brady, brought in 13 new players including Lyndon Dykes, Alfie May, Bailey Peacock-Farrell and Tomoki Iwata.
Wrexham, with their Hollywood partnership of owners Rob McElhenney and Ryan Reynolds, have also invested millions to take the club from the National League to League One in consecutive seasons.
"In agreeing to the amendments, clubs recognise that decisions to invest have to address all areas of club operations, not just on field matters, and these rule changes will help ensure they can work to that objective," an EFL statement read. , external
The changes do no affect sides in the Championship, who are bound by different financial rules restricting them to cumulative losses of £39m over a three-year period.
"Separately, clubs in the Championship are continuing their discussion in respect of potential changes to Financial Control rules for the division, with further updates expected in the early part of 2025," the EFL added.
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Who needs money when you've got an SLT the envy of clubs up and down the land.
Worry not. Methven, Rodwell, Scott & Warwick have been turning sows ears into silk purses for years.......or at least that's what they told the Americans!!1 - Sponsored links:
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So equity must be spent partially on non playing items. I guess I can see the logic of a longer term stability objective.carly burn said:Who needs money when you've got an SLT the envy of clubs up and down the land.
Worry not. Methven, Rodwell, Scott & Warwick have been turning sows ears into silk purses for years.......or at least that's what they told the Americans!!Doesn’t stop however a club (as we should) attempting to spend ‘big’ on the right players to get out if this league as longer term that’s the only way of investors not losing it all.1 -
That 40% put in a piggy 🐷 bank and buy back the Valley and Training Ground.Dansk_Red said:BBC article:-Clubs in Leagues One and Two will be restricted in the amount of money put into the club from owners that can be spent on player wages and transfer fees from the 2025-26 season.
Under new rules sides will only be able to spend a proportion of any investment over £500,000.
Owners in League One putting £1m or more into a club will only be able to spend 60% on player-related expenditure while League Two sides will only be permitted to spend 50%.
The rules bring equity investment, where owners buy shares in a club, into line with the English Football League's Salary Cost Management Protocol (SCMP) - part of Financial Fair Play regulations to help control clubs' financial losses.
Under the current SCMP rules, League One sides can spend 60% of turnover on wages and transfer fees and League Two sides 50%, but 100% of any equity investment.
Another change to the rules means that only 60%, in League One, and 50%, in League Two, of extra football income - such as prize money, cup earnings or transfer fees received - will be able to spent on player-related expenditure, whereas previously all of this money was able to be spent on the squad.
It means that should an owner of a League One side invest £100m in their club they could only spend just over £60m on players.
Owners can still spend an unlimited amount of money in non-player related costs such as infrastructure improvements or community projects.
It comes as more and more new owners have taken over EFL sides - most notably in League One with the high-profile takeovers of Birmingham City and Wrexham.
Blues spent a reported League One record fee of £15m on Fulham's Jay Stansfield in the summer as their ownership group, which includes NFL legend Tom Brady, brought in 13 new players including Lyndon Dykes, Alfie May, Bailey Peacock-Farrell and Tomoki Iwata.
Wrexham, with their Hollywood partnership of owners Rob McElhenney and Ryan Reynolds, have also invested millions to take the club from the National League to League One in consecutive seasons.
"In agreeing to the amendments, clubs recognise that decisions to invest have to address all areas of club operations, not just on field matters, and these rule changes will help ensure they can work to that objective," an EFL statement read. , external
The changes do no affect sides in the Championship, who are bound by different financial rules restricting them to cumulative losses of £39m over a three-year period.
"Separately, clubs in the Championship are continuing their discussion in respect of potential changes to Financial Control rules for the division, with further updates expected in the early part of 2025," the EFL added.
Then this club can function like a club again.7 -
All I want for Christmas are owners doing this to our club spending huge sums - that's all I've ever wanted.
I don't like them shutting this stuff down as we are still attractive on some level - So the chances of a lunatic owner throwing money at us is still viable in some alternate reality.
Also with all these limitations - over time I can see the Prem breaking off to a European super league.
Newcastle would much rather operate in a not limited environment.
Furthermore we are going to see the prem money boom shortly - with Premflix coming into play.
These limitations are not here to stay imho.0 -
I hope they do clear off to a european super league and let us reclaim our football league back to the way that suits the fans that actually attend matches. We've let big business and tv call the shots for too long now. They've now moved boxing day games to 3pm to suit the tv audience, away from the traditional 12 midday which was in place to enable families to enjoy the afternoon and evening together. Now we just have the evening - thanks very much. It's gone too far. The game needs restructuring and if it needs the big prem clubs to clear off in order to do so, then fine. Boxing day game away to Steau Bucharest? - be my guest. The government would need to get involved. Its very unlikely but it should happen. There were as many premier league games on sunday this weekend as saturday. How long til most are on Sunday? Its our national game their fucking about with, all to suit tv audiences around the world. It certainly isn't to suit english fans who actually go to matches.2
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The midday KO only applied in London and was enforced by the police for their own reasons, even if it suited people.DOUCHER said:I hope they do clear off to a european super league and let us reclaim our football league back to the way that suits the fans that actually attend matches. We've let big business and tv call the shots for too long now. They've now moved boxing day games to 3pm to suit the tv audience, away from the traditional 12 midday which was in place to enable families to enjoy the afternoon and evening together. Now we just have the evening - thanks very much. It's gone too far. The game needs restructuring and if it needs the big prem clubs to clear off in order to do so, then fine. Boxing day game away to Steau Bucharest? - be my guest. The government would need to get involved. It’s very unlikely but it should happen. There were as many premier league games on sunday this weekend as saturday. How long til most are on Sunday? Its our national game their fucking about with, all to suit tv audiences around the world. It certainly isn't to suit english fans who actually go to matches.0 -
Surely no Boxing Day games as they'll have a two monthe winter break?DOUCHER said:I hope they do clear off to a european super league and let us reclaim our football league back to the way that suits the fans that actually attend matches. We've let big business and tv call the shots for too long now. They've now moved boxing day games to 3pm to suit the tv audience, away from the traditional 12 midday which was in place to enable families to enjoy the afternoon and evening together. Now we just have the evening - thanks very much. It's gone too far. The game needs restructuring and if it needs the big prem clubs to clear off in order to do so, then fine. Boxing day game away to Steau Bucharest? - be my guest. The government would need to get involved. Its very unlikely but it should happen. There were as many premier league games on sunday this weekend as saturday. How long til most are on Sunday? Its our national game their fucking about with, all to suit tv audiences around the world. It certainly isn't to suit english fans who actually go to matches.0 -
That could pull the cosy rug from under the top two divisions. Basically, in L1 and L2, players wages will have to be affordable so that existing parachute for players drifting down the leagues for a pay day will go unless more of the PL money is shared downwards.0
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ok, thanks - well, if we take control of our own league and clubs we can do more of what suits people that attend games, rather than people sitting watching a tv on the other side of the worldAirman Brown said:
The midday KO only applied in London and was enforced by the police for their own reasons, even if it suited people.DOUCHER said:I hope they do clear off to a european super league and let us reclaim our football league back to the way that suits the fans that actually attend matches. We've let big business and tv call the shots for too long now. They've now moved boxing day games to 3pm to suit the tv audience, away from the traditional 12 midday which was in place to enable families to enjoy the afternoon and evening together. Now we just have the evening - thanks very much. It's gone too far. The game needs restructuring and if it needs the big prem clubs to clear off in order to do so, then fine. Boxing day game away to Steau Bucharest? - be my guest. The government would need to get involved. It’s very unlikely but it should happen. There were as many premier league games on sunday this weekend as saturday. How long til most are on Sunday? Its our national game their fucking about with, all to suit tv audiences around the world. It certainly isn't to suit english fans who actually go to matches.
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Very few Premier League players drift down through the leagues nowadays, they are all multi millionaires by the time they hit 30letthegoodtimesroll said:That could pull the cosy rug from under the top two divisions. Basically, in L1 and L2, players wages will have to be affordable so that existing parachute for players drifting down the leagues for a pay day will go unless more of the PL money is shared downwards.0 -
And those who do all sign for us when they’re over the hilleaststandmike said:
Very few Premier League players drift down through the leagues nowadays, they are all multi millionaires by the time they hit 30letthegoodtimesroll said:That could pull the cosy rug from under the top two divisions. Basically, in L1 and L2, players wages will have to be affordable so that existing parachute for players drifting down the leagues for a pay day will go unless more of the PL money is shared downwards.0 - Sponsored links:
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Are there lots of players in the PL that stay there until they are 30 years old ?eaststandmike said:
Very few Premier League players drift down through the leagues nowadays, they are all multi millionaires by the time they hit 30letthegoodtimesroll said:That could pull the cosy rug from under the top two divisions. Basically, in L1 and L2, players wages will have to be affordable so that existing parachute for players drifting down the leagues for a pay day will go unless more of the PL money is shared downwards.
75+ players get relegated with their teams every season; and plenty of PL youth team squad players on what often sounds like very decent money will get cut from the payroll. Some will get offers from another PL club but I doubt they all do. The Championship probably soaks up the majority but that also means those clubs have to make some room in their squads. Cap the money available for wages in the leagues below and it’s a hard fall for those players.0 -
Need to get Cat 1 asap then!Henry Irving said:0 -
I wonder what restrictions have been put on the “non-player” costs. If the owners wanted to put £6m into the playing budget, what’s to stop them injecting £10m and paying themselves a £4m dividend? I know, tax wise, that’s a hugely inefficient use of funds, would it be legal under the new regs? You’d hope not, but it is the EFL.0
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Well obviously that’s the case, I was referring to the high end players. The 75 players you are referring too are in fact championship players because they have been relegatedletthegoodtimesroll said:
Are there lots of players in the PL that stay there until they are 30 years old ?eaststandmike said:
Very few Premier League players drift down through the leagues nowadays, they are all multi millionaires by the time they hit 30letthegoodtimesroll said:That could pull the cosy rug from under the top two divisions. Basically, in L1 and L2, players wages will have to be affordable so that existing parachute for players drifting down the leagues for a pay day will go unless more of the PL money is shared downwards.
75+ players get relegated with their teams every season; and plenty of PL youth team squad players on what often sounds like very decent money will get cut from the payroll. Some will get offers from another PL club but I doubt they all do. The Championship probably soaks up the majority but that also means those clubs have to make some room in their squads. Cap the money available for wages in the leagues below and it’s a hard fall for those players.0
