Jump to content

English League Two Wage Cap


Recommended Posts

I don't knowif it will be incorporated in the game, but in real life the owners of Notts County can put money into the club "as a gift", which counts as turnover, so does not really affect Notts County

Would you like to explain that a bit more as "Gifts" are most definately not part of turnover.

Link to post
Share on other sites

Yes I know what you mean Simon but if the cap is introduced correctly into the game then these gifts/injections do not form part of your turnover and therefore have no affect on the size of your wage cap.

As i understand it, the new owners have set up massively profiable sponsorship deals for their own company, effectively advertising themselves, this now forms part of the turnover.

Link to post
Share on other sites

Another thing these owners can do is issue more shares which they then buy. As the majority/sole owner, issue 10,000 shares at £100 a share, and £1m goes straight into the club coffers. Obviously, if you issue more shares at a higher price (initially diluting your own stake in the club) you can get more money in the club.

I believe Arsenal have done something to this effect recently, to help raise a bit more funding.

Link to post
Share on other sites

Ah well even if they haven't (I'd only heard about the suggestion to do it and thought they had) its a way of generating income for a club. Which in a turnover based wage cap structure, can be easily done.

Link to post
Share on other sites

Another thing these owners can do is issue more shares which they then buy. As the majority/sole owner, issue 10,000 shares at £100 a share, and £1m goes straight into the club coffers. Obviously, if you issue more shares at a higher price (initially diluting your own stake in the club) you can get more money in the club.

I believe Arsenal have done something to this effect recently, to help raise a bit more funding.

And if the club is owned by a private company they won't even have to offer the shares to the public, thus not even diluting their stake.

Link to post
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...