The difference between the wealthiest clubs and the poorest clubs has reached unprecedented levels. And it’s ironic given the record amounts of money in the game today. We see football players becoming instant millionaires and purchasing fast cars while at the same time we see many clubs crumble under financial burden. It’s a tragic irony.
Even those clubs who continue to attract great crowds to their home games have discovered that gate receipts cannot cover the increased costs of being competitive in football.
The large increase in players’ wages has led to many clubs struggling to remain competitive. Wages have increased so much that the average footballer is now a millionaire and figures among the richest earners in sport worldwide.
An increase in players’ wages effectively means that clubs have to pay more to keep their best players and/or to attract new players. A lot of clubs are not able to afford such wages and have to make the tough decision of borrowing extra funds to remain competitive. Competitiveness is even more vital when a club can get relegated at the end of the season.
As a result, many football people have begun to wonder whether such wage increases can effectively be controlled. In fact, it is being controlled in 2 countries: the USA and Australia. Both leagues employ a salary cap to make sure that every club in their respective leagues do not spend more than a certain amount on players’ wages. However, what are the pros and cons of such a system being employed in Europe?
The major disadvantage of having a salary cap system in place is that it becomes very difficult for a club to retain its players. As a result, championship-winning teams rarely do stay together for another season. This is exactly what happened when Melbourne Victory won the 2006/07 in dominating fashion. The exodus of various players led to Victory having a disastrous season in 2007/08. The salary cap is an even greater disadvantage in football especially if other leagues do not have a salary cap themselves. As a result, the best players and talent will be taken away from leagues with salary caps, leaving fans with the leftovers.
Nevertheless, I still encourage FIFA and other political bodies to consider the use of the salary cap worldwide. I would rather see talent moving to different leagues rather than see clubs fall and disappear forever.