The EPL is in urgent need of a salary cap
By Matthew Maguire, 26 Feb 2010 Matthew Maguire is a Roar Rookie
- Tagged:
- AFL, EPL, FA Cup, football, Leeds Utd, Portsmouth, World Football
Related coverage
- Football news
- World Football - EPL, Champions League & Europe news
- AFL news
- Toyota Premiership news
- EPL - English Premier League news
Portsmouth, hoisting aloft the FA Cup just two years ago, will sink into administration today and unless the EPL introduce a salary cup, many others face a similar fate.
EPL clubs have debts totalling over A$5.5 billion, more than every other European league combined.
Average playing salaries are notoriously difficult to pin down given transfer fees skew the numbers but on the most recent figures, the average EPL wage is between A$2.1 million and A$2.4 million.
While plenty to most, it is not an unreasonable figure, albeit ten times the average AFL salary but half the going rate in the NBA.
The European season runs ten months of the year and playing to huge markets brings about greater revenue and in turn, greater salaries.
Broadcast rights from Sky and Setanta alone amount to almost A$3 billion over the last four seasons.
Opponents of such a proposal claim any cap will prompt star players to defect to fellow powerhouse leagues in Spain and Italy, yet there has not been anything approaching a mass exodus in recent years while Spain have charged players as much as 30% less than under the UK’s taxation system.
While Portsmouth’s woes may be as much about mis-management as a desire to match their EPL counterparts, it is a reality facing all but the biggest clubs.
The fate of Leeds Utd, third in the premiership in 1999/2000 but now battling away in League One, appears to have gone unnoticed as the neon warning sign it should have been to rival clubs.
Manchester Utd, Liverpool, Chelsea and Arsenal have built their considerable success with mammoth spending on facilities, coaching, scouting and of course, rare playing talent the likes of Portsmouth feel pressured to match.
A sensible and actively enforced salary cap, perhaps with an A-League style exemption clause to permit a marquee player outside the cap, would ease the pressure on middle and lower tier clubs and promote greater competition within the league.
Only four clubs have tasted premiership success in its now 18 year history and the FA Cup has included a proverbial ‘big four’ club in all but one final since 1991.
Under the current arrangement, fans care more about survival than success given they have no legitimate hope of snaring silverware.
For entire cities to celebrate finishing 17th of twenty, thus ensuring their survival in the premiership for one more year, should be considered a sad indictment on the EPL.
Any responsible administration would seek to not only protect its participating clubs from insolvency but also oversee and encourage their development, yet it appears any move on the introduction of a mandatory salary cap is further from realisation than ever.
Such inaction will sadly see the demise of more than just Portsmouth.
Recommend this story.
The Turkey 10
The Turkey 10 teams have now been selected, as Wild Turkey Bourbon's sport sponsorship kicks into the next exciting phase.
Choose which side you're going to support and get in the running to win $2,500!
Simply visit Wild Turkey Australia on Facebook for your chance to win.
Find out more.
Do you have what it takes to become a sports writer? Write for the roar
Football articles
- Fans want a club, not a name, that fills them with Pride (129)
- The war that’s not a war (128)
- Too many doubts over new A-League club (101)
- Magic EPL finish as Manchester City triumph in tightest of title races (93)
- Is this the end of the football salary cap? (63)
- Manchester City, ‘Uniting’ the sporting world (60)
- Destiny as Chelsea finally win the UEFA Champions League (60)
- Dual signings give Mariners A-League boost
- Would a video referee work in football? (58)
- Oman the Socceroos’ focus, says Kennedy (17)
- There’s life In England’s lower leagues (17)
- Chelsea teach Barca and Real an ugly football lesson (20)
- Solving the issue of the long A-League off-season (15)
- Abbas wants A-League excitement at Sydney FC (23)
- There’s life In England’s lower leagues (17)
- Chelsea teach Barca and Real an ugly football lesson (20)
- Solving the issue of the long A-League off-season (15)
- Oh my god! They’ve killed Kenny (12)
- Is Chelsea’s Abramovic finally satisfied? (15)
- Is this the end of the football salary cap? (63)
- Supporting a loser will make you love sport (27)
- Explore:
- AFL, EPL, FA Cup, football, Leeds Utd, Portsmouth, World Football


February 26th 2010 @ 2:01am
Mr Real Australian it's called Football Man formerly known as Kurt said | February 26th 2010 @ 2:01am | Report comment
Hmmm, interesting article though can’t imagine you’ll get too much support from soccer fans for this idea. Salary caps are difficult enough to design and enforce in a ‘closed’ system such as the NBA or AFL where there is little risk of defection to rival leagues or sports. I’m guessing that if you’re a Russian trillionaire you can can probably find a way to work around such trifling obstacles – possibly by gifting players a spare oil-field or something like that.
As much as the common fan will rail against the idea, I think salvation for the EPL and other European leagues lies in the super-league concept. The big clubs get to maximise their revenue streams and more importantly have certainty about those streams – essential when you’re servicing massive debts. The others get to compete with similar-sized clubs and lose the temptation to bankrupt themselves by trying to match the big-spenders.
February 26th 2010 @ 5:22am
katzilla said | February 26th 2010 @ 5:22am | Report comment
“much support from SOCCER fans for this idea”
Did you just contradict your handle in your first sentence?
The smaller clubs need to look for more Billionaire owners with more money then sense i guess?
February 26th 2010 @ 7:29am
Lu said | February 26th 2010 @ 7:29am | Report comment
good idea on paper..
Problem is, too many people profit from the league/teams.. you’re effectively asking a lot of (greedy) people to give up a lot of money..
and with the likes of Billionaire owners coming in and inflating the market even more.. everyone is going to try and get their money.. and some. No one is going to give in.
February 26th 2010 @ 7:44am
JiMMM said | February 26th 2010 @ 7:44am | Report comment
To be honest I’m a fan of teh Bundesliga model, which caps spending on players at I believe 50% of turnover (excluding prizemoney). I think is the perfect compromise between the EPL, La Liga Seira A mosel of whoever can get the most billionaire backers will win and the common australian practice of a salary cap, which limits the clubs that are successful off the pitch (yes I’m a broncos fan get over it).
It’s a simple model that rewards clubs for being succesful of the pitch as well as on it, without allowing massive overspending and causing clubs to close. One major downside is it doesn’t work without a promotion and relegation system.
February 26th 2010 @ 2:54pm
Ben of Phnom Penh said | February 26th 2010 @ 2:54pm | Report comment
noted and agreed. The Bundesliga model rewards good business plans
February 26th 2010 @ 5:22pm
Phutbol said | February 26th 2010 @ 5:22pm | Report comment
Only problem being that you will still end up with the same inequalities that exist now ie the big clubs (ManU etc) with the biggest turnover will be able to stomp on your Hull’s and Stoke’s within a turnover based system.
It will just stop the ManC’s from competing when they find their rich benefactors.
Globally, football is a business and the reality is that businesses go broke from time to time.
February 26th 2010 @ 7:51am
Fivehole said | February 26th 2010 @ 7:51am | Report comment
I can’t see the big four agreeing to this, and if they were to defect to a “Super League” them the Premier League would lose some of its lustre. Although i agree with the intentions. Its only a matter of time before the Glazers need to get out of ManU.
February 26th 2010 @ 8:47am
David said | February 26th 2010 @ 8:47am | Report comment
Yea i have to say it dose need one bad
February 26th 2010 @ 8:48am
Art Sapphire said | February 26th 2010 @ 8:48am | Report comment
The EPL does not need a salary cap. What it needs is regulatory controls ala the Bundesliga.
In the Bundesliga, German clubs must remain at least 51 per cent in the hands of its own members and have to open their books to show that they are not spending beyond their means.
What this means is that people like the Glazers can’t go in and take over a club with a mountain of debt.
The fate of Leeds as you note is actually an indictment on the English clubs paying way too much for average players and living beyond their means.
Suggesting a salary cap is ludicrous an unworkable as the EPL clubs comes in different sizes – where smaller clubs can be promoted to the EPL and bigger can drop out (Newcastle)
Below I have listed the estimated transfer market values of the top 4 squads and bottom 4 squads in the EPL. Where do you set the cap to pay for these players?. It has to be large enough for the EPL clubs to be competitive in Europe. But what’s to stop a small club then from over-reaching and still getting into trouble. The best solution as JiMMM noted is a salaries determined by percentage of turnover and ideally for clubs to be majority owned by members.
Chelsea FC 436.450.000 – Pounds
Manchester United 375.050.000
Liverpool FC 321.600.000
Arsenal FC 304.000.000
Hull City 65.000.000
Birmingham City 64.250.000
Wolverhampton Wanderers 58.500.000
FC Burnley 47.300.000
February 26th 2010 @ 9:11am
vas said | February 26th 2010 @ 9:11am | Report comment
what the current market is going to teach european football clubs is that there is always a limit.
it’s fine to spend big, but like any business decision, you have to get a return, and also pay back your loans.
a salary cap would work in theory, but it would never be effected. the success of the epl has thrived on the big-money success of manchester united and chelsea. take that away, and you’re handicapping certain clubs out of success, and you’re giving impetus to other clubs who are equally badly mismanaged.
portsmouth’s plight is clear indication the overspending hasn’t occurred merely at the top. what will happen is that for the next few years, the transfer market will be very quiet as clubs attempt to address their balance books. they will attempt to buy cheap and sell big.
and the other good news is that, clubs may actually re-focus much of their budget on their youth systems, as this will be a crucial provider to their future success.
the current market is a reality check for everyone, and should be heeded as such…
February 26th 2010 @ 11:27am
Slippery Jim said | February 26th 2010 @ 11:27am | Report comment
No need to panic about the Porstmouth problems, something similar (actually more disastrous) happened before to Leeds and the same thing happens in Leagues around the world. Even the A-League with probably one of the most restrictive salary caps in the world dissolved a club due to lack of finances. At least Leeds, Portsmouth and others did not cease to exist.
The concept of a salary cap goes contrary to the Premier League ‘Virtuous Circle’ model and would not be introduced without a complete remodelling of the league in England.
One thing that needs to be remembered is that the Premier League is the most lucrative domestic football league in the world. TV rights alone generate billions of pounds for the clubs, in addition to the benefits of lucrative involvement in Europe, unrivalled sponsorship income and other revenue streams.
I agree more or less with what Art is saying in that if a change is required then it should be a percentage of turnover. The fact that the UEFA Champions League is considering introducing penalties for clubs who spend more than their revenue shows this is likely to be the direction that is taken, if any change is required at all.
February 26th 2010 @ 3:13pm
Footbal Person said | February 26th 2010 @ 3:13pm | Report comment
Portsmouth owners would want to go down wouldn’t they? If they can claim the championship I beleive that adds 100 mill to your coffers.
February 26th 2010 @ 4:41pm
AndyRoo said | February 26th 2010 @ 4:41pm | Report comment
You don’t actualy get 100m for winning the Championship, it’s the playing in the premier league that generates the 100m. That’s why winningthe championship is worth 100m, as is staying in the premier league.
February 26th 2010 @ 3:28pm
Roger Rational said | February 26th 2010 @ 3:28pm | Report comment
Bundesliga = Mediocrity
February 26th 2010 @ 4:19pm
Art Sapphire said | February 26th 2010 @ 4:19pm | Report comment
Roger Rational – you observation is mediocrity with a capital M.
You can watch a Bundesliga game for $20-$25 standing in the terraces.
The game is affordable to families and the working class. We pay the same to watch the A-League.
However, for that money the Germans can watch players with the quality of Robben, Ribery, Ozil etc, etc
Here is a nice little stat.
German Bundesliga 09-10 – Average Attendance: 42,185
English Premier League 09-10 Average Attendance: 34,263
The German punters are voting with their feet and not paying thru the nose to boot.