Jump to content

Statement by Chairman


Recommended Posts

7 minutes ago, Ryan said:

I’ll get shot down, but...

 

Seems disingenuous to cite FFP regulations as the reason for slashing the wage budget. They don’t apply at our level.

 

You are right but the Salary Cost Management Protocol exists (as you know I’m sure) and is very similar to FFP.

 

There are clues in the words in case you don’t think it affects the player budget.

Link to comment
Share on other sites

Just now, Inspiral_Carpet said:

 

You are right but the Salary Cost Management Protocol exists (as you know I’m sure) and is very similar to FFP.

 

There are clues in the words in case you don’t think it affects the player budget.

But doesn’t a capital injection from the owner count as ‘revenue’ with regards to SCMP?

 

Honestly not trying to be provocative here by the way.

Link to comment
Share on other sites

9 minutes ago, Ryan said:

I’ll get shot down, but...

 

Seems disingenuous to cite FFP regulations as the reason for slashing the wage budget. They don’t apply at our level.

 

Not the same regulations as for the Premier League/Championship, no. But there are still financial fair play regulations.

 

In Leagues One and Two these come under the 'Salary Cost Management Protocol', or SCMP (catchy). In effect, a club in League Two is limited to spending a maximum of 55% of turnover on wages, and there are sanctions for clubs which breach the regulations. On League One this is 60%.

 

Further information can be found in Appendix 5 of the EFL Rules and Regulations, if you're interested. Entitled? ..."Financial Fair Play Regulations".

 

(Suspect you knew that already, though)

Link to comment
Share on other sites

2 minutes ago, Ryan said:

But doesn’t a capital injection from the owner count as ‘revenue’ with regards to SCMP?

 

Honestly not trying to be provocative here by the way.

 

Again you are right.  As long as it isn’t repayable.

 

I think the point here though in his statement is the fact he’s had to stump up more money than expected paying creditors that weren’t declared by the previous regime.

 

Personally, the jury is out for me regarding AL.  He does some strange things.  But, maybe, just maybe, once the swamp is drained, he will invest more capital. 

Link to comment
Share on other sites

30 minutes ago, Ryan said:

I’ll get shot down, but...

 

Seems disingenuous to cite FFP regulations as the reason for slashing the wage budget. They don’t apply at our level.

 

He has to operate on a level that is sutainable. Isn’t that what we all wanted all along!?  We can’t change the thing we moan about simply so we can carry on moaning.  

 

Corny got grief for carrying debt and not paying bills/wages. People pointed to Dale as a god example of a well run club, saying why can’t we do that? He now tries to do that after considerable cleaning up with £3m of his cash and those same people still moan? It’s ridiculous. 

Edited by kowenicki
Link to comment
Share on other sites

5 minutes ago, Ryan said:

But doesn’t a capital injection from the owner count as ‘revenue’ with regards to SCMP?

 

Honestly not trying to be provocative here by the way.

 

Just now, Inspiral_Carpet said:

 

Again you are right.  As long as it isn’t repayable.

 

I think the point here though in his statement is the fact he’s had to stump up more money than expected paying creditors that weren’t declared by the previous regime.

 

Personally, the jury is out for me regarding AL.  He does some strange things.  But, maybe, just maybe, once the swamp is drained, he will invest more capital. 

 

Indeed. Don't think he really needs to justify not investing an unsustainable amount of capital to get around the salary cap.

His point is that to get the club's finances to a more sustainable level, the wage bill had to be slashed. He's using the EFL's guidance (55% of turnover) as a barometer for the size of wage bill that is sustainable for a club like ours. That seems perfectly rational to me.

Link to comment
Share on other sites

Honest statement. He’s chucked 3m and people will still give him shit. 

 

I also am happy he has has defended himself against the shit that was thrown by the likes of Davies. Just an entitled footballer trying to leave mid/contract for higher wages who then downed tools in a sulk.  

Link to comment
Share on other sites

Just now, kowenicki said:

 

Wrong. As usual. 

SCMP is not the same as FFP. It does not limit owners spending as ‘revenue’ includes donations and capital injections. It is easy to bypass. It’s misleading to suggest that regulations are the reason we’ve slashed the wage bill in half. Abdallah could easily increase the wage bill if he wanted (not saying I expect him too).

Link to comment
Share on other sites

‘Ultimately, who plays in the team is down to the manager and his staff. If a player is not loyal, shows no discipline or shows a total lack of professionalism towards the club or any of their colleagues then I am 100% behind our manager to make the correct decision on them. Any player that isn’t committed to this club will not feature for Oldham Athletic.’

 

mmmm? I wonder which individuals he could be referring to?

 

 

Link to comment
Share on other sites

1 minute ago, Ryan said:

SCMP is not the same as FFP. It does not limit owners spending as ‘revenue’ includes donations and capital injections. It is easy to bypass. It’s misleading to suggest that regulations are the reason we’ve slashed the wage bill in half. Abdallah could easily increase the wage bill if he wanted (not saying I expect him too).

 

Ive explained my answer in the large edit.  It applies to you and others.  We can’t have it both ways. 

Link to comment
Share on other sites

1 minute ago, TheBigDog said:

‘Ultimately, who plays in the team is down to the manager and his staff. If a player is not loyal, shows no discipline or shows a total lack of professionalism towards the club or any of their colleagues then I am 100% behind our manager to make the correct decision on them. Any player that isn’t committed to this club will not feature for Oldham Athletic.’

 

mmmm? I wonder which individuals he could be referring to?

 

 

 

Dunno. But he’s bang on. 

Link to comment
Share on other sites

Back him, back Bunn & Rhodes and back the team, its all very new still. Rome wasn't built in a day !!

Way way too soon into his ownership for all the doom and gloom going on at present no matter what anyone says. I understand some fans are pissed with the club but I just can't be bothered being miserable about football anymore, much more important things in life.

None of us know what goes on and none of us can change anything.

It was obvious some sort of financial fall out would occur from relegation but lets give the team a chance, the two young on loan strikers could really be a hit for us, especially if a fit Baxter starts playing more minutes.

We've got what we've got and need to live with it hoping the club can be turned around once again.

Things go around in circles, it has been done before, no reason why it can't be done once again.

 

 

Link to comment
Share on other sites

 

 

Clubs in the League 1 and League 2 operate within a Spending Constraint framework termed Salary Cost Management Protocol (SMCP). SCMP limits spending on player wages to a percentage of club Turnover. In League 1 clubs can spend a maximum of 60% of their turnover on wages - in League 2, the limit is 55%. There are no restrictions (in themselves) on the amount a club can lose or spend on transfer fees. 

Initially introduced into League 2 in 2004/5 for guidance purposes, sanctions for breaching the SCMP thresholds were introduced during the 2011/12 season, with Swindon the first club to be sanctioned under the rules. 

The process is interactive with clubs providing the Football League with projections for the spending for the coming season. During the season the clubs provide regular updates on their Turnover and wage bill. Any club that is forecasting a wage spend within 5% of the figure will be scrutinised more closely. Where a club is on course to exceed the limits, the Football League will apply a Transfer Embargo. Crucially, a club doesn't have to overspend to incur the embargo, it only needs to shown to be heading for an overspend. This interactive approach enables clubs to increase their wage bill if their circumstances improve - a successful cup run will generate increased income and the Football League may be able to sanction additional wage spend. Because SCMP doesn't rely on the retrospective scrutiny of club accounts, it is also extremely effective at stopping overspend before the spending actually occurs (something that has been a problem for the Championship's version of FFP).

The Football League's website's explanation of the rules doesn't go into a great deal of detail about how they operate. However they have responded to enquiries and confirmed a number of areas that help us to better understand the rules. 

Link to comment
Share on other sites

5 minutes ago, kowenicki said:

 

Ive explained my answer in the large edit.  It applies to you and others.  We can’t have it both ways. 

I’m not attacking him for not investing further, I’m merely saying that it’s misleading to blame the regulations as the reason we cannot spend more. 

 

Anyway, its tone was positive overall but it didn’t really address anything new.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...