Darragh MacAnthony reveals his alternative salary cap proposals - which would be good news for Sunderland
Peterborough United president Darragh MacAnthony has revealed the alternative salary cap proposal which he submitted to the EFL – with League One clubs braced for sweeping financial changes.
Under current EFL proposals, all third tier clubs will be forced to ensure their expenditure on player wages falls below a £2.5million cap next season – although there will be allowances made for existing player contracts.
Sunderland are strongly opposed to the changes given they will negate the natural advantage possessed by the club due to their large fanbase. Portsmouth have also been vocal in their displeasure at the plans.
But MacAnthony – who admits his Peterborough side could struggle with the cap were they to remain in League One in the long-term – has pitched an alternative solution to clubs.
His plans, which were submitted to the EFL three months ago, would see clubs ‘bracketed’ with others who have a similar turnover and with an income-based cap then applied.
This, MacAnthony argues, would encourage clubs to grow their turnover.
“It was like markers - if you earned under £5million then you could spend £2.5million [on wages],” he explained, speaking to the Hard Truth podcast.
“If you earned £7million, you could spend £4million. If you hit £10million you could spend £6million and if you earned £15million then could you spend £8million.
“It incentivised clubs to actually increase their revenues - commercially, by selling players, having better academies - and the more you created you then moved up into a different camp.
“Posh last year probably turned over £6million, so our turnover spend would fall into that £2.5million wage spend bracket.
“But if we then sold a player for £10million, we would be allowed to spend in a higher bracket.”
“What the Football League have done is try to simplify it - but it’s hard core,” he added.
“These are big clubs with a big fanbase and suddenly you’re telling these clubs who are already paying players seven, eight, nine grand a week that they have twelve months to get their house in order and they can only spend £2.5million a season. They’re going to be flush with cash.”