Arsenal chief executive Ivan Gazidis calls for salary cap

[Rosco]

Arsenal's chief executive Ivan Gazidis has said the Premier League should consider introducing a salary cap for its clubs as a way of encouraging financial stability and more even competition throughout the league.

In an interview with the Guardian, Gazidis repeatedly emphasised the virtues of Arsenal's "self-sustaining finances", comparing that policy favourably with other clubs which rely on billionaires' munificence. Pointing out that Premier League clubs do not make profits in general, despite record income, he said players' wages are set to grow even more, which would further threaten clubs' profitability.

With Manchester City, owned by Sheikh Mansour of Abu Dhabi, reportedly prepared to pay Samuel Eto'o £180,000 a week, Gazidis also argued for restraint. "I think it is worth our while to investigate whether there are elements of the salary cap system, which they have in US NFL and baseball, which would benefit football," he said.

"Clubs have a duty to provide more stability in our business models and some form of wage restraint is one element worth looking at. There are many different ways in which it could work."

The idea of a salary cap has never gained support with Premier League owners, who have always preferred the free and unregulated system in which they can pour in money to buy the players they want, and then pay them what they want.

Gazidis has been schooled in the traditions of US sport, having been the deputy commissioner of Major League Soccer, a highly regulated league with a strict salary cap, for 14 years before joining Arsenal in January. He pointed out that clubs which rely on rich backers need to find new owners quickly when the funding runs out, and he believes that creates too much instability into football.

Gazidis is part of a European clubs' association working group considering improvements to the financial running of football, and he referred admiringly to Germany's Bundesliga – "the only profitable league," he said– which has tight restrictions on the debts clubs can carry, and insists they live within their means.

Today the Arsenal board will consider a proposal from Alisher Usmanov, the Russian with 25% of the club, for a rights issue of shares which would raise new money for the club. Gazidis would not disclose details of the suggestion, but his response to it was guarded. "I am open-minded and we have commissioned Rothschild [the merchant bank] to advise the board," he said. "We have to be sure it can make a real and lasting contribution to the club."

http://www.guardian.co.uk/football/2009/jul/02/arsenal-ivan-gazidis-premier-league-salary-cap

It would need to be Europe wide to have any effect so I wonder if this is realistic ?

 

[Frogfish]

It'll be too late for Kraft.

 

[Squiggles]

I think it's within all the clubs interests to adopt a salary cap and as such it's a feasible option.

But fear that clubs would find ways round it with bonuses, 'gifts' and whatnot.

 

[Rosco]

[quote author=Squiggles link=topic=34486.msg898491#msg898491 date=1246513761]
I think it's within all the clubs interests to adopt a salary cap and as such it's a feasible option.

But fear that clubs would find ways round it with bonuses, 'gifts' and whatnot.
[/quote]

There was a report out yesterday saying that payments like those are being used as ways fo dodging tax. There were two specific incidents involving unnamed Premier League clubs that illustrated it.

 

[Squiggles]

Yeah, it's of no surprise really; especially given the global conditions.

There is a risk it may prove too tempting for top clubs too swerve the rules in a bid to land the top players, and we make football a lot, lot 'dirtier', rather than the relatively open & honest approach we adopt now.

 

[gkmacca]

Here you are:

Next!