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lost to the dispute in 2004/05.
The main success of the wage cap in the NHL has been to improve
club financial sustainability, a status the EPL with its estimated
collective debt of £2.6 bn can aspire to.
Another league with a wage cap in operation is the Australian
Football League (AFL - Aussie Rules). Astoundingly, football’s top
earners, Ibrahimovich and Kaká who earn £166,000 per week or
£8.63 m per year, earn more than the whole of the Aussie Rules
league combined. However, in addition to the wage cap there is a
draft system to regulate player transfers. This system allows the
teams finishing lowest the first pick at players in next seasons
draft picks, ensuring that the league is very balanced.
The AFL introduced an equalisation policy in 1987 and put an
end to dominance of the select few teams and the Aussies have
welcomed it with open arms. In fact the last 10 seasons have
seen half of the teams in the league win the title, compared to
just 3 teams in the EPL winning the title in the last 13 years.
Interestingly, the last five years has also seen a different champion
each year.
Sound more exciting?
Even for fans of reasonably successful
teams such as Aston Villa or Everton, can you really see your team
being champion of the EPL in the next 10 years?
But how would a proposed wage cap or draft system be received
in Europe?
The EPL has reached its strongest position within the realms of
European football in the last few years, with no English clubs
eliminated by foreign opposition in last year’s European Champions
League.
As the self declared ‘best league in the world’, the EPL’s financial
clout can attract the biggest names in football, the monikers
“Ronaldo”, “Robinho” and “Torres” are key for global popularity
of the English game. A wage cap however would then limit this
ability for the EPL to attract such footballing luminaries. Where is
the logic in inhibiting the best teams because they are too good?
It is after all called the “Premier” league, where the top level of
football in England is contended.
Pundits are quick to forget the other 72 teams competing in the
English leagues, the Championship being one the most exciting
leagues each year, and how could there be more drama than the
sub plots of point deductions and cup competitions? If a wage
cap was imposed on every league, increased parity between
teams could see a yo-yo effect between divisions and the newly
promoted could face insolvency when trying to secure their
finances to compete outside their comfort zone.
An overriding facet of the English game is the tradition and
heritage of clubs; fans pride themselves on their clubs history and
former glories and would not take well to being usurped by lowly
opposition
Are we too stuck in our ways then? The Australian AFL has
implemented far-reaching changes with little backlash and as a
result they have a thrilling league.
A lot of media attention has surrounded the Man City debate, but
teams like Manchester United and Chelsea have been spending
fortunes for years. There is only a minority of teams with
billionaire owners that can afford such extravagance, so maybe
the situation has been blown out of proportion. Arsené Wenger’s
policy of developing young players has seen Arsenal win the EPL
and reach the Champions league final without having to blow
their budget, which proves it is possible to compete at the top
without a Sheikh or Russian oligarch.
A wage cap would have to be imposed across Europe otherwise
players would simply leave to the highest paying league, and this
blanket cap would be very difficult to impose. The EPL has in fact
recently rejected the notion again.
There are alternatives however, such as limiting foreign players, as
is being proposed by FIFA, banning teams in debt from competing
in the Champions League, or even limiting entry to the Champions
league back to the
Champions
from each country.
Ultimately the sport is dependent on fans, and until the financial
burden becomes too great, football’s money makers are safe as
clubs finances are secured long term via TV deals and sponsorship.
Change will only come when fans start voting with their feet,
and this seems unlikely as 2007/08 saw the highest average
attendances across England’s four football leagues (29.9m) since
1967/68.
A survey of EPL finance directors by PKF accountants reveal
the number clubs planning on giving wage rises this year have
fallen by 69% and the use of performance based contracts has
increased by 47%. So it is also unlikely that wages will be capped
or reduced, merely stabilised.
Despite the urge to panic, football goes in cycles. Look at Leeds
and Nottingham Forest for example, both top flight teams now
languishing in lower leagues. In 10 years time Abramovich could
have upped sticks, United could be languishing due to having
failed to replace the retiring Ferguson and Tottenham may have
finally surged out of mid table mediocrity without the need to
introduce a salary cap!
touchline
Is
Wage Capping
the
Way Forward
for Sport?
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