dimanche 4 novembre 2012

A salary cap in football, is it possible ?


European football is well criticized because of its financial situation and his lack of competitiveness. Indeed, some are very competitive but very indebted or have some funds from Abu Dhabi or Qatar. So, this situation create a split between big clubs and small clubs.

In NBA, there are different financial rules. First of all, there is a salary cap, so the NBA franchises can't spend more than $ 58 million for all the players on the roster. This rule was made to balance the competitiveness of the league and also to prevent indebted teams. However, there is a flexibility about the salary cap, it is called Luxury tax. Indeed, a team can overtake the salary cap until $25 million more but has to pay 1$ more for 1$ spent above the salary cap. 

In European football, there is no salary cap, so, a club can buy a player if it has some funds or can purchase more loans. In that case, we can see big clubs like Real Madrid, FC Barcelona or clubs with rich investors like Manchester City or Paris Saint Germain buying the best players. 

Furthermore, the best players want to earn much more money. Actually, they want to earn more money than the others. In NBA, it's a little bit different. The NBA players want more money but there is a cap of $14 million for a maximum contract. This is huge, but this is a limit for not enlarge the gap between the clubs. 

A salary cap seems to be a good choice for European football. But it will be very difficult to implement this. First because there is a too huge financial differences between a Manchester United and a Evian Thonon Gaillard in Ligue 1. There is also too much clubs in Europe, so the competitiveness will be too much sprinkled to be good. 

However, we can fix a limit, even if it will be not so efficient because of the two factors mentioned before. Indeed, we can't let the wages of football players get bigger and bigger during a  financial crisis that make the clubs more indebted. 
If you are interested, you can watch the Forbes list of worlds highest paid athletes.

3 commentaires:

  1. A salary cap is a good idea but right now the UEFA is trying to solve the problem in another way with their Financial Fair Play rule. To give a summary, the rule basically says that at the end of each year, the club has to make a profit. If not, they will get penalized. This will indirectly affect the salary of the players so the financial differences would get smaller.

    But you cant compare Evian and Manchester united. One is a newly promoted french club and the other is one of the best clubs in the world.

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  2. I also thing that shuolb be a salary cap in football because in times of crisis, we can see that many clubs can pay their taxes to goverments because the do not have money, but why they still pay the salary of the players if is supossed that they do not have money. Governments shuold be more strict with the club to force them to pay their debts and at the end theyshuold be forced to think in the idea to cut soccer salaries. Or also another posibility for goverments shuold be up taxes for players that have a high salary..... I don´t know but i can believe that the clubs have debts and they still paying the players...

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  3. I personally dont belive in salary caps in the soccer. I believe that some players earn way to much money, but its the teams that thinks they deserve it. I wouldnt blame the players, if you compare with an "ordinary" job you will find that everyone wants to earn more. Also, the great players contributes in revenues to the club in shape of selling jerseys and promotion. A better way to handle the problem of owners putting in to much money in the clubs, so they are able to spend it on players and their wages, would be the Fifa Fair Play that is going to take effect next season. Then all teams need to act more carefully to not spend money that they "dont have".

    // Fredrik Norberg

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