40% reduction in tv rights? They don’t have a choice
40% reduction in tv rights? They don’t have a choice
ISL has a salary cap of INR 1.65 Cr., which is ~$3.1m and less than the A-League salary cap. There are no exceptions, and there is a marquee rule allowing one marquee, which requires a player to either qualify as an U23 ‘Prodigy’, or a 'Veteran:
A ’ Veteran ’ has to satisfy three criteria - He should have a minimum of 75 appearances under his belt for clubs playing in the top five leagues - English Premier League, La Liga, Serie A, Bundesliga, Ligue 1. He must have represented a club in the UEFA Champions League or Europa League. In international football, he must have played in the FIFA World Cup, Euro Cup or FIFA Confederations Cup (qualification rounds do not count).
I don’t see how they could possibly manage to poach ALF from us, unless he’s had a burning life-long desire to live in India.
There is potential in that, but whatever is happening here, will more than likely be worse in India with higher deaths, infection and a significantly worse health system. I dare say the Indian PL will most likely restart sooner than later, but I can’t see them being able to enforce the same degree of security that you would expect in a country like Australia.
Although you never know, he could be one of those that thinks it’s just a simply flu and happy to take the risk…
I’ve read several times that the TV rights allocation only makes up 20% of the revenue for us and Melbourne. A 40% cut, therefore, will result in less than a 10% drop in total revenue. All lowering the cap will do is see the better players leave lowering the standard of the league and making less attractive to any potential broadcaster. The clubs themselves will also become less valuable and may see an exodus of owners and investors.
Poorer clubs such as CCM will lose a far greater chunk of their revenue but they are only spending at the floor of the salary cap. The salary cap for this season was $3.2m with the floor $2.88m (90%). If the cap is slashed by 40% in line with the drop in tv revenue that would mean next seasons cap would be $1.92m with the floor $1.728m. If a club is losing more than half of their revenue then the $1m saved in wages won’t be enough to cover those losses. The only way to make those clubs sustainable, therefore, is to lower the floor.
If the floor was lowered to $1.25m then a club would be able to sign 19 players at the over 20 minimum wage of $65k. To be honest, CCM are barely sustainable or competitive at the moment and are forced to pay players far above their market value under the current cap rules. Lowering the floor will see them remain sustainable, maintain their level of competitiveness and pay their players a wage more appropriate to their value.
Correct.
The reason the NRL had to hustle to return was their TV rights exposure.
Financially I think we are more exposed to depressed transfer fees (Adrian, Bobo, Branners, etc) than TV.
There’s a pretty good chance that the same factors forcing sports to take a significant cut in broadcast revenue will also filter through to sponsorship spend, advertising, corporates etc. soon enough.
Not to mention that gate receipts will be significantly hit this season, and there’s no certainty as to when stadiums will be fully operational going forward.
And a lot of our recent revenue claims have been boosted by a flurry of transfer revenues which aren’t exactly a proven source of reliable recurring revenue just yet.
The salary cap increased by ~10% in 2017-18 and then ~5% in both 2018-19 and 2019-20.
On top of that, in recent years we’ve seen the second marquee open up, loyalty player allowance come in and then become uncapped, ditto the Home-Grown allowance.
The scholarship positions allow teams to keep young players contracted for the future (and for emergency depth) without taking up squad positions, which frees up more space within the cap.
In dollar-terms the standard has unambiguously improved. Clubs have been signing one, sometimes two, players inside the cap on salaries which would have required a marquee spot just a few years ago.
And its not like the football community, let alone the broader sporting public, has been fawning over this improvement at all - if anything we’ve gone backwards in perception.
I don’t think that increments in standard makes any difference whatsoever in the attractiveness of the product, because improving both teams x% better just cancel each other out and aren’t discernible to a layman or even enthusiast eye test. All you achieve is making a given player look that much less special and more limited than they previously did.
Narrative sells, competitive games with something on the line sell, and you don’t need to boost the wage budget to achieve that.
Won’t be 40%, no way PFA would allow that. Wouldn’t surprise me if we drop to $2.8m or $3m next year though.
Some of you might like to read this analysis while we wait for the league to return:
It’s been a while since we’ve had a good website for detailed A-League tactical analysis but I liked this one. It’s more focused on patterns of play rather than being overly reliant on statistics. The defensive section is particularly good.
Hands off
We’ve got him for another season and I doubt that any League One club can afford the transfer fee in this economic climate.
As a Portsmouth fan, I’d love nothing more than to see Alfie playing at Fratton Park, but considering our financial past and constant disappointment when it comes to trying to promote back to the Championship, he’d be better playing for Sydney…
but wait i thought he was going to India? LOL
League One seems unlikely for a guy who has played EPL and is marquee here.
2 independent rumours is interesting. India one seemed to be garbage but another one popping up is curious.
Not sure there is anything interesting about spurious rumours about this season’s leading goal scorer and last season’s runner up.
Why ? Theyre both big clubs in L1 and he’s played there previously.
Theres plenty of ex-PL players around his age there
Its not like he is desperate to achieve a career aim and marquee HAL wages are gonna be ballpark with L1. I don’t see it.
It would be pretty nice playing at the stadium of light I rekon. Not as nice as living in Sydney though
Only nice if you are playing there away I reckon.
What’s Tillio’s contract status?
Off contract at the end of this season