The NBA and MLB have a unique way of dealing with wage bill over-runs. I wonder if it might work here.
Luxury tax on the wage bill.
Rules do not disallow any owner wanting to spend money on their club and players, but above 150% of the league average on wages, the league starts taxing any wage expenditure over that amount, in increasingly progressive percentages, eventually reaching 100%.
Those monies collected are re-allocated to all other clubs, evenly.
The idea behind it is the acceptance that those clubs will likely dominate, thus making all the other clubs less competitive and thus... less valuable. So it reallocates some of that to even it out and keep other clubs healthy.
So an owner can spend literally 5x more than anyone else, but another 20-100% of that will be paid to other clubs. They have freedom... just not freedom to make everyone else in the league irrelevant, financially.
Perhaps prospective owners/investors in football should be expected to produce a plan detailing their intentions within a standard format, and expressed in such a way that it can be objectively evaluated. The plan will form a key component of the O&DT.
The plan must feature a general statement from the prospective owner/investors, and it might also include market analyses and fiscal projections, which will inform how compliance with FFP or other similar constraints, will be achieved.
The plan should acknowledge the football club as a significant community asset with its own unique culture, which is to be protected and nurtured, and it will set out how this obligation will be met.
Prospective owners/investors will be expected to acknowledge fans as key stakeholders, with a vested interest in the football club. As such it should give consideration to whether fans can be offered the opportunity to influence the operational and strategic direction of the football club, or at least some other form of representation to the club executive.
It should give a commitment to openness and transparency and propose a framework for good and meaningful communication with fans: Who? What? How? When?
The plan must give a commitment to proactively contribute to the local community and describe how it will achieve this.
Once the plan is agreed and approved as part of the O&DT, it must be reviewed annually, when performance can be measured against the plan, with agreed sanctions available for non-performance.
Comments
Luxury tax on the wage bill.
Rules do not disallow any owner wanting to spend money on their club and players, but above 150% of the league average on wages, the league starts taxing any wage expenditure over that amount, in increasingly progressive percentages, eventually reaching 100%.
Those monies collected are re-allocated to all other clubs, evenly.
The idea behind it is the acceptance that those clubs will likely dominate, thus making all the other clubs less competitive and thus... less valuable. So it reallocates some of that to even it out and keep other clubs healthy.
So an owner can spend literally 5x more than anyone else, but another 20-100% of that will be paid to other clubs. They have freedom... just not freedom to make everyone else in the league irrelevant, financially.
The plan must feature a general statement from the prospective owner/investors, and it might also include market analyses and fiscal projections, which will inform how compliance with FFP or other similar constraints, will be achieved.
The plan should acknowledge the football club as a significant community asset with its own unique culture, which is to be protected and nurtured, and it will set out how this obligation will be met.
Prospective owners/investors will be expected to acknowledge fans as key stakeholders, with a vested interest in the football club. As such it should give consideration to whether fans can be offered the opportunity to influence the operational and strategic direction of the football club, or at least some other form of representation to the club executive.
It should give a commitment to openness and transparency and propose a framework for good and meaningful communication with fans: Who? What? How? When?
The plan must give a commitment to proactively contribute to the local community and describe how it will achieve this.
Once the plan is agreed and approved as part of the O&DT, it must be reviewed annually, when performance can be measured against the plan, with agreed sanctions available for non-performance.