ONE CAP DOES NOT FIT ALL
Rotherham boss Warne speaks out on EFL’s controversial salary cap
IN the sage view of English Football League chief executive David Baldwin, the term salary cap is an ‘ emotive one’.
Amid the wholly opposing stances regarding the governing body’s controversial new regulations – which will see squad salary limits of £ 2.5m and £ 1.5m operate in League One and Two in 2020/ 21 – all are likely to at least agree with the comment of the former Bradford City CEO.
It represents a rare spot of unanimity.
In the one camp are those who believe that salary caps will, in the final analysis, safeguard the future of many lower- division clubs in stricken financial times. For many, this is the ‘ bottom line’.
Leading football finance expert Rob Wilson cogently conveyed that very point in The Yorkshire Post last week and estimated that ‘ 10, 15 or maybe 20 clubs’ would go into administration in the next two years without the new regulatory system.
Others – step forward the likes of Sunderland, Portsmouth, Ipswich Town and Bradford City – believe that capping stymies aspiration and heavily penalises the so- called bigger clubs in the lower leagues.
For Rotherham United manager Paul Warne, someone whose views are always thought- provoking and articulately expressed, it is all a question of balance and he believes that there are significant flaws in the system, while having sympathy with those clubs who feel that caps should apply to turnover.
Warne, whose club were promoted to the second tier from League One in 2019/ 20, said: “I have not got a stereotypical ‘ EFL’ view on it. It is a difficult one for me and I do not want to come across as disingenuous.
“But if Sunderland get 30,000 fans in every week and get ‘ X’ amount of income, if they do not overspend it is a bit harsh if they have to keep at the same level as someone who gets only 2,000 fans in. That is my opinion.
“I would have preferred – as naive as this sounds – some sort of ‘ casino’ system. Where if you spend say eight million in the season, you must have ‘ X’ amount in the bank and some bond system that guarantees that if you leave, the club would not go under.
“The bigger clubs are going to struggle and you could say they can invest money ( in other things). But if you are Sunderland, what are you going to invest it in? They have got the best training facilities and they can just put it in the bank for a rainy day.
“Their supporters will expect a certain level of standing for their viewing ( position as a club), but they might not get it. It might hurt the big clubs.
“It is like you are capping people. It gives the smaller clubs a much better chance and punishes the bigger ones.
“Do not get me wrong, I am not saying the other system was great – with boom and bust. But I would just prefer a more policed issue in not overspending and rules on overspending and trying to beat the system being punished there and then.”
For those lower- division clubs who harbour hopes of progressing to the Championship – where the cap is set to be a much higher £ 18m – there is the added consideration of how do you compete if you do reach the second tier, having previously operated to such tight financial parameters.
Anotheranomaly, intheeyes of Warne, is the fact that those clubs relegated from the Championship would be able to keep their squads together due to “transition agreements” regarding players on longer- term contracts.
Clubs who go down would be permitted to cap all contracts at the divisional average prior to relegationuntil thosecontractsexpire.
Warne added: “There are other problems with it. The teams who get relegated from the Championship have the opportunity to keep their squad together for a couple of years and that means the divide between League One and the Championship could get greater.
“In the same way, if League One teams come up, they are going to have to potentially rip their whole team apart and sign a whole new team. It also affects what players can earn and it is like a wage cap on players and it feels like it is a little bit of a step back.
“I get the reasoning for it and why they want it in place – to save clubs. I understand that. But I think there could have been a better hybrid system in my opinion.”
As a newly- promoted Championship club, the new salary cap will have another potential knock- on effect for Rotherham regarding their squad make- up, according to Warne, who admits he may now have to think twice before allowing some squad players to leave on loan.
“If we want to loan a player out, what I get offered is significantly less than what I ( previously) did,” the Millers chief commented.
“From a selfish point of view, we are in the Championship and with us loaning players out, we do not get the same return.
“From a players’ stand- point, they might not get loans as much for their benefit as clubs are thinking: ‘ if we are only getting this amount of money, we might as well keep them here as we might need them’.”
It gives the smaller clubs a better chance and punishes bigger ones. Rotherham United manager Paul Warne on the salary cap.