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Author Topic: Getting round the salary cap  (Read 1472 times)
The Artist Formerly Known as Audrey

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« on: Tuesday, December 8, 2020, 11:56:17 »

What is to stop an owner paying a player outside of his capped salary by ‘losing’ a monthly game of poker for the extra amount? Not illegal, no tax or NI to pay on either side. Everyone’s a winner!
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pauld
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« Reply #1 on: Tuesday, December 8, 2020, 12:04:38 »

What is to stop an owner paying a player outside of his capped salary by ‘losing’ a monthly game of poker for the extra amount? Not illegal, no tax or NI to pay on either side. Everyone’s a winner!
If it's a disguised payment to evade paying tax, that is categorically illegal, no matter what fiction is used to disguise the evasion.
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Nemo
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« Reply #2 on: Tuesday, December 8, 2020, 12:10:45 »

I reckon there's a good chance that minds sharper than our own may have thought about this one Aud.

Saracens Rugby Union is an interesting example of cap-bending by the owner, who co-invested in companies with some of his stars. They got a very heavy book thrown at them.
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michael
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« Reply #3 on: Tuesday, December 8, 2020, 12:12:43 »

...and if not it is probably considered as ethically dubious as investing in film production companies.

Portsmouth got into a lot of trouble for messing around with this sort of thing. They over-paid on image rights (taxable at a lower rate than they would otherwise be at, apparently), and under-paying on wages.
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bamboonoclue

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« Reply #4 on: Tuesday, December 8, 2020, 19:25:04 »

...and if not it is probably considered as ethically dubious as investing in film production companies.

Portsmouth got into a lot of trouble for messing around with this sort of thing. They over-paid on image rights (taxable at a lower rate than they would otherwise be at, apparently), and under-paying on wages.

That strategy is "ok" if people don't take the piss. But people with money tend to want to keep it and make more so greed takes over.
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El Dino
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« Reply #5 on: Tuesday, February 9, 2021, 16:23:45 »

there is no salary cap

https://www.bbc.co.uk/sport/football/55997868
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« Reply #6 on: Tuesday, February 9, 2021, 16:25:12 »

Interesting to see where it goes from here
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pauld
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« Reply #7 on: Tuesday, February 9, 2021, 16:33:13 »

Interesting to see where it goes from here
Especially as we now default back to the %age based wage cap (SCMP) - 60% of income in L1, 50% in L2. It's possible that some clubs are now technically in default of SCMP but were compliant with the flat cap.

EDIT: obviously, pretty much every club in both leagues will be in default this season.
« Last Edit: Tuesday, February 9, 2021, 16:38:51 by pauld » Logged
The Artist Formerly Known as Audrey

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« Reply #8 on: Tuesday, February 9, 2021, 16:37:31 »

Bet Power can’t wait to throw some proper wonga at it now

According to that report the cap was a proposal. Thought it was in operation as of now
« Last Edit: Tuesday, February 9, 2021, 16:39:51 by The Artist Formerly Known as Audrey » Logged

bamboonoclue

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« Reply #9 on: Tuesday, February 9, 2021, 17:17:52 »

Bet Power can’t wait to throw some proper wonga at it now

According to that report the cap was a proposal. Thought it was in operation as of now

All about budgeting I guess. If I proposed to you that in a year, restrictions would be in place to prevent spiralling costs in your businesses then you would adapt your cash-flow or budget tlin préparation to do so; it would be good practice. Plus you would be able to see any potential discrepancies or ways of working within the new means ahead of time.

In this instance, the proposal has been withdrawn but it appears most, if not all clubs were working with the recognition of the restriction being in place.

I'm more surprised that the clubs that have dodgy owners actually adhered to it. Then again, it means they haven't had to shell out/compete for larger contracts.
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El Dino
Has to go.
I'm "In the know"
With an insecurity, don't ya know!

Stick with the clown
We're going to go down.
Could be the wideboy, "Am all in Shawn"
Lewisham Lee losing loyalty, living near Lausanne.

Could cute cockended "compete for cash" Curran
Complete a CB conundrum?
Could cuckoos make couscous
Create a culinary construct?
Could they cuck!

All In This Together Now!
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« Reply #10 on: Tuesday, February 9, 2021, 18:22:34 »

Richie Wellens will be fapping away
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Kinky Tom
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« Reply #11 on: Tuesday, February 9, 2021, 18:59:18 »

Salford could easily get round a cap anyway, or anyone really.  Don't pay wages for loans, instead pay a large fee for the loan.  5 players, or more, instantly not included in the wage budget.  That could easily add up to a million quid.
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bamboonoclue

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« Reply #12 on: Tuesday, February 9, 2021, 19:49:10 »

Richie Wellens will be fapping away

A right FAFfers dream (Free Agent Fapper) 
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El Dino
Has to go.
I'm "In the know"
With an insecurity, don't ya know!

Stick with the clown
We're going to go down.
Could be the wideboy, "Am all in Shawn"
Lewisham Lee losing loyalty, living near Lausanne.

Could cute cockended "compete for cash" Curran
Complete a CB conundrum?
Could cuckoos make couscous
Create a culinary construct?
Could they cuck!

All In This Together Now!
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