EFL - Restructure or not | Vital Football

EFL - Restructure or not

mehmets_curlies

Vital Squad Member
#1
With the financial issues for Bury, Bolton and Macclesfield, is it time to regionalise L1, L2 and the National league, and all cup competitions? Perhaps the cost of club travel and bigger crowds (due to potentially bigger away followings) would make a positive impact on club finances?
 

Wayne.Kerr

Vital Champions League
#6
Going back to the old north/south divide could have an impact, including National North. Going from west to east in no particular order, you have Fleetwood, Fylde, Blackpool, Accrington, Bury [nearly], Bolton, Rochdale, Oldham, Halifax, Chorley, Tranmere, Stockport, Crewe, Macclesfield, Southport, Chester and Bradford's not that far off. Those towns all have a relatively small catchment areas if you consider also that Burnley, Blackburn, Huddersfield and Preston are all close by and Leeds not so far off but more local games could add a thousand or more visiting fans compared with [say] two/three hundred Gills fans and we have a better than average following on the road.

I think the real problem is the overall set up and the eye-watering amounts in the EPL. They can throw around the sort of money that would keep the likes of Macclesfield afloat. I know it's far too late now but had the [sweet] FA taken a closer look back when they thought about the Premiership stuff perhaps the German model would have been the way to go but 'no' we invented football and we know better, Now some of those founding teams are on the brink. At the very least, a more equitable distribution of TV money could make a difference overnight.

https://www.bbc.co.uk/news/business-22625160
 

itstimupnorth

Vital Youth Team
#8
Any restructuring would have to accompanied by wholesale changes to the way football in the lower leagues is funded. But it's not just a matter of chucking more money into lower league clubs, as any person or organisation receiving a grant (as that is effectively what it would be) should be held to account as to how the money is used, and how it benefits the FOOTBALL CLUB, not the directors of that club. The more money that goes in, the more forensic the examination of the accounts should be. That would make clubs more financially accountable to the EFL, who should have the teeth, and the willingness to use them, in the case of transgressions.

But that assumes that funding is available. I have seen comments that the government should get involved, though I'm not sure what would be expected of them, unless it's forcing the PL to hand over some of their funds to the EFL, but that's as much government involvement as I'd like to see. Governments are too transient to be able to think too far into the future, and expecting government hand outs would then pass the fiscal reporting responsibility back to the government. The potential outcome of that is unthinkable. No, it's the EFL that needs to get it's act together

There is no doubt the current model is not sustainable in the longer term. Over recent years PS has run Gillingham on a financially sustainable basis, but how much money has been written off by lenders over the years to enable him to get to that position?

As far as league restructuring is concerned, I think that there might be a case for leagues tier 4 and below (i.e league 2 and below) to be regionalised for reasons given by WK above, but at some point clubs should begin a 'learning process' in preparation potentially for bigger things - Championship and higher - so I'd leave League 1 as national.
 

nitram77

Vital 1st Team Regular
#9
You can restructure as often as you like it will make no difference, until clubs start living within their means clubs will continue to get into trouble. When you have league 1 clubs paying millions in transfer fee's and wages, you either except mediocrity or gamble with money you haven't got in order to compete.
Applying wage and transfer caps is the only way to steady the ship.
 

Wayne.Kerr

Vital Champions League
#10
Applying wage and transfer caps is the only way to steady the ship.
There is already something in place but not for transfer fees. Clubs in the League 1 and 2 operate within a Spending Constraint framework termed Salary Cost Management Protocol - the SCMP. SCMP limits spending on player wages to a percentage of club Turnover. In League 1 clubs can spend a maximum of 60% of their turnover on wages - in League 2, the limit is 55%. There are no restrictions (in themselves) on the amount a club can lose or spend on transfer fees. I suspect that lower league clubs don't spend much on fees unless they have a benefactor. Plus, there are restrictions on what directors can do vis a vis insolvency regulations, although as we know that's a bolted stable door job.
 

PhilK66

Vital 1st Team Regular
#11
Not in favour - only two chances to get promoted to the Championship rather than 3. Can't think the Championship would want that increased to 2 per regional league.
 

itstimupnorth

Vital Youth Team
#12
There is already something in place but not for transfer fees. Clubs in the League 1 and 2 operate within a Spending Constraint framework termed Salary Cost Management Protocol - the SCMP. SCMP limits spending on player wages to a percentage of club Turnover. In League 1 clubs can spend a maximum of 60% of their turnover on wages - in League 2, the limit is 55%. There are no restrictions (in themselves) on the amount a club can lose or spend on transfer fees. I suspect that lower league clubs don't spend much on fees unless they have a benefactor. Plus, there are restrictions on what directors can do vis a vis insolvency regulations, although as we know that's a bolted stable door job.
Well that clearly stopped Bury overspending on wages and getting into the situation they're now in, didn't it.

No point in regulations unless they're enforced.
 

jogills

Vital 1st Team Regular
#13
Things are moving so fast at present that any restructuring ideas need very careful consideration. It looks as if lower division clubs are slipping further behind, which explains some of Scally's pronouncements. It may be that a number of clubs will go to the wall, or accept a lower grade of football. Best to wait for that shakeout to occur because Man City and co are determined to head off to a super league.

All this begs the questions 1) Do we care? & 2) What point a new ground?

If we are to be a lower division club, barring spectacular investment, I will still be going. That is pretty well the situation anyway and getting high up the league, top if possible, is always a prize. What point upgrading the ground at vast expense in such a scenario.