QuoteThe good old slap on the wrist treatment. That'll fix it.Originally Posted by Dodge
Wonder will they accrue a payment from Danninger for E1m in their end of year accounts to get around the wage cap?
Small bit on the back of the Star today claims that Bohs have exceeded the 65% salary cap thingy and have been told to fix it by the FAI.
It was only a line or two at the end of a piece on Cork's troubles. Anybody read/hear anything else?
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The good old slap on the wrist treatment. That'll fix it.
Wonder will they accrue a payment from Danninger for E1m in their end of year accounts to get around the wage cap?
Jeez, looks like Bohs could have the most expensive youth coaches in Ireland this year.
#NeverStopNotGivingUp
For the record the "fix it by the FAI" is entirely my wording. I've no idea if Bohs were sanctioned in similar ways to clubs like Galway last year.
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Fair enough.
What other alternative is there? Expel them from the league?
The FAI have said previously that they monitor the accounts on monthly basis & if club exceeds 55% they meet with them to work out the remedy. I think breaking 65% mid season means transfer embargo.
Of course we are close to the stupid mid season break which means all clubs will probably be financially tight.
Transfer embargo, points deduction etc. Eventually relegation
I doubt accrued income counts towards salary cap percentage?
In any case, only a joke shop auditor would sign off on an accrual on a contract that was subject to legal action from a counterparty that was subject to a winding up order. But having seen the car parks revaluation in last years accounts, anythings possible....
It shouldn't, but my cynical mind says you may as well give the FAI every chance to fudge it.
The car park revaluation was necessary to keep the company solvent and avoid an EGM being called.But having seen the car parks revaluation in last years accounts, anythings possible....
True, but not now or yet.
I`d be surprised if we weren`t, given that we are awaiting 100 k for Ward from Wolves and whatever we get out of European participation. The actual money "gates" have been pretty crap so far afaik .
I understood that the sanctions in respect of the 65% were only applicable if exceeded in the relevant calendar year?
Are you talking about European money for 09/10? That doesn't come until the Champions League Final is done....in May 2010.
You get a small upfront travel payment but you will use that for travelling to the CL qualifiers.
if they exceeded the 65% pay cap, should they not be punished or is that all looked at when the season is over???
Gate receipts and TV rights, if any, would be about the extent of it for this calendar year alright.
Correct.
A transfer embargo is not a real sanction
Check out what Padraig Smith was quoted as saying in the recent Indo article -
'And in light of their recently leaked financial documentation, which showed an operating debt of over €1m for 2008, are Bohemians in danger of overspending this year?
“The Salary Cost Protocol is a big issue for them this year,” says Smith.
“But that goes without saying, when you have salaries that are so high and the other side of the business not generating sufficient income to match that expenditure, it’s obviously worrying.
“We’ve met with the club and the club is well aware of its obligations and the rules and the sanctions for breaching those rules.
“It will be an issue, and it is something that we will be monitoring throughout the season and we’ ll know by the end of the year if they’ve breached it. If they do breach it, they will be sanctioned accordingly by relegation and non-participation in Europe. '
That statement is pretty clear about the consequences of breaching the limit!
That’s if it’s a year long thing. Pete is talking about the minor "transgressions" that happen during some months of the season (eg Galway last year). If Bohs make the necessary corrective actions and over the period of the season their wages are below the 65%, then they're fine
54,321 sold - wws will never die - ***
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If you wanted to be really pedantic you could say every club breaks 65% on the day they pay their wages!
Surely it just goes on the end of year accounts, and any fluctuations within the year are okay so long as it averages out below 65%. Gate receipts will obviously be down during the summer break, for example, but wages will still have to be paid
It would go on the monthly accounts I assume to determine the ongoing situation.
Upwards to the vanguard where the pressure is too high.
I agree with you that the only pragmatic view is the end of season analysis. Pre-season budget submissions, monthly accounts reviews etc appear to be simply a monitoring tool to act as a "red light" warning indicator. If clubs ignore the FAI advice or cautions (as Padraig Smith clearly implies has occured) and are found to be over the cap at season end, then relegation and disqualification from Europe is the consequence.
It is interesting that he is uniquivical about this, yet the FAI record on fudges is legendary.
The notion of a club who is exceeding the 65% in mid season having a transfer embargo on July signings as a sanction is hilarious
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