As I look down this forum it seems to be the same old story over and over again, "<insert team here> in financial trouble" or "<insert team here> fails to pay players wages". Whether it's Shels, Drogheda, Cork or Derry one thing is for sure, they are killing the game in Ireland.
Now, I know we all jump in the bandwagon and blame barstoolers for all the ills of the "domestic" game, but I think we have to point the finger squarely at the clubs that make up the league, and, more importantly, at the regulatory or license issuing body, the FAI. It will be the same old story until licensing is taken seriously to stop the big stories of the season taking place in the Four Courts.
So, how to fix it? Well, that's something else that's been debated ad nauseum here, but sure why not give it a go again?
I believe that the crucial problem is that licensing is not taken seriously by either party involved. When it was proposed most of the details got lost in the eye candy, e.g. 10000000 LUX floodlights or yellow steps. Fair enough, somebody says there's a 65% salary cap but we all know that's a joke right.
And I'm not looking at anyone in particular. Bohs. It's the enforcement of this cap that will save clubs here. We won't be able to compete with clubs across channel though and some players expectations that all rather than a few can make their living exclusively from their on the pitch jobs might be dashed.
Anyway, here's how I think that it can work. In order to receive a license and take part in the next season, a club must submit (a) full accounts for the previous year, and (b) projections for the next year, to include assets and liabilities, e.g. rent, wages,
TAX (Hello Cork!) and any other outgoings that exist that would prevent the team competing. Nothing too radical here huh?
Probably not, but here's the killer. The club must lodge 50% of the next seasons projected liabilites with the FAI as a bond. In the case that the club can't meet their obligations there is a fund there to start to pay out from. As the licensing body, the FAI are responsible to pay the other 50%. So, in the case where a club is forced to draw down on the bond in a month, 8.75% from the clubs deposit from the bond and 8.75% from the licensing body, i.e. the FAI. The details of these bonds should be made publicly available when the season starts and the transfer window is closed.
How does this fix things? Well, firstly, the FAI won't issue licenses to clubs like they do now, where a club has a few weeks to put together some solution where a license isn't issued initially and all that rubbish. They get assessed on their facilities and pay their bond for the year. If they pass on everything they are in, but unlike now, if they run short on cash through the year, there is a bailout. A second benefit of this is that the FAI are not going to want to expose themselves to financial loss and will be more careful when issuing licenses where they could be responsible for 50% of the liabilities of the league as a whole. The first season of a system like this would be very interesting.
That's the stick, but where's the carrot I hear you ask? There is none! If you draw on your bond in a season, the consequences are draconian:
- Relegation the next season
- Banned from European competition the next 2 seasons
- Players tied to a club drawing on their bond cannot be transfered for the next two seasons.
And don't get me started on the national team, that's for next week.
What do you all think?
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