RotherhamRam Posted June 8, 2011 Share Posted June 8, 2011 Now we all know Tom Glick or To some Tom the Slick as some refer to him, has is a bit reknown for being very very good at spinning the odd yarn now and then and convincing people the sky is green and the grass is blue. Now I know there is a thread in respect of League finances but please bare with me as I do not want this lost in a thread and not getting people to think about what is currently happening The League have voted today to basically to take to the AGM a plan to incorprate a wage cap similar to the UEFA cap coming in, in 2014 where clubs can only spend 60% of their revenue on wages. Now people are thinking where does Tom Glick come into this. Glick at the end of the season explained that they have undertaken a massive restructure especially over the last 12months. The Club board are happy to explain where the money has gone and the reported running costs for the year 2010 showing a reduction expenditure and indications are that we will not be running in deficit this season. The board has ALWAYS stated until the club is on a sound financial footing no real investment on the team will take pllace. Now Glick history is in advertisement and since he has arrived you can't take a pish without a sponsor. He has encouraged a lot of revenue into the club through these deals and other adventures and has enforced a cut of the wage bill of I think of about £6-£8million. Now I know some will be still wondering where this thread is going - nearly there. Now we all know to our frustrations that the board have held the stance that they have made tough decisions for the best interests of the club but none of us could understand why such savage cuts in such a short a period of time. Now all of a sudden we are investing but on players whose wages will not be excessive. Well here goes with what I believe is probably one of the biggest potential business coups which will benefit Derby in long run. Now who is on the board of directors of the Football League none other than our Tom Glick and was voted there at the end of last season when Blackpool got promoted. Now of the 8 members forming the board of directors for the football league, covering the Championship down to League 2, four are from Championship of these 4 there are 3 who are chairmans of football clubs. Derby Ipswich and Boro. Now these clubs are not affluent and all three have over recent yrs been known not to splash cash as such. Tom Glick would be pushing his business model to the board of directors knowing full well the extent of the debt and the unsutainability of this. I think that Glick has noticed a flaw and using the art of spin has in my opinion manufactured this situation using our model of running within operational costs and getting finances in order and possibly convicnced other clubs to follow suit. Now the report on Sky text says some clubs are not happy with the proposals but it is has a large number supporting this vote at the AGM and looks like a possibility. Now I can see us fitting this model really well and I could see Tom not going for this if this was not the case and Ipswich and Boro would not have thought of this. With the work done so far by DCFC this could be a massive plus for us. We will already be in the right position and not having to adjust to these rules. Now look up and down the league and consider clubs who are punching above their weight in the financial market and the impact this will have on them. I can think of two clubs in the East Midlands. Nottingham Forest and Leicester. Both totally rely on their chairmans to invest the money. Now remember it is not on transfers but this cap is on wages. Then there is Portsmouth with their high earners along with Hull. To think of 4. This decision could be really big for us maybe not this season and if we do not go up we will be in a strong position as the team/squad will not need adjusting but other teams will have to adjust. Clubs with big debts and large loan repayments will be impacted on as this will mean less for wages. This will ultimately reduce wages in long run because if clubs can not afford wages players will not want to be out of work and will take a pay cut so good for football. Champiosnhip proven players may become more readily available. Glick has either planned or inadvertently stumbled on this and this idea has been driven by some one and we all know through experience and the comments on here that Derby will no longer spend more than it earns and will no longer sit in debt and the driving force is Glick. This could be a very positive moment in Derby future if the league voted for this. Link to comment Share on other sites More sharing options...
uttoxram75 Posted June 8, 2011 Share Posted June 8, 2011 Glick has been working toward this for some time now. He spoke passionately about this subject and the support he was building last year. Like you say, a wage cap based on the clubs turnover would benefit us more than most. Link to comment Share on other sites More sharing options...
Leeds Ram Posted June 8, 2011 Share Posted June 8, 2011 yes but i doubt the league will vote for it tbh. Also what is our revenue compared to our new wage structure? Link to comment Share on other sites More sharing options...
CumbrianRam Posted June 8, 2011 Share Posted June 8, 2011 If they want to save costs, why the feck are they having the AGM in Cyprus?:confused: Link to comment Share on other sites More sharing options...
observer Posted June 8, 2011 Share Posted June 8, 2011 surely derbys turnover must be one of the highest in the league and I would bet our wage bill isnt which means we have scope for improvement where other teams might not have the flexibility Link to comment Share on other sites More sharing options...
NorfolkRam Posted June 8, 2011 Share Posted June 8, 2011 If they want to save cots, why the feck are they having the AGM in Cyprus?:confused: Because cots aren't reliable in Portugal Link to comment Share on other sites More sharing options...
NorfolkRam Posted June 8, 2011 Share Posted June 8, 2011 Aww edited out! Link to comment Share on other sites More sharing options...
bcnram Posted June 8, 2011 Share Posted June 8, 2011 Glick has either planned or inadvertently stumbled on this and this idea has been driven by some one and we all know through experience and the comments on here that Derby will no longer spend more than it earns and will no longer sit in debt and the driving force is Glick. This could be a very positive moment in Derby future if the league voted for this. Don't the US sports run in the same sort of way, viz viz wage caps? It has got to come in if the current league structure is to survive. It is just not sustainable to run on the level of debts that some clubs irresponsibly rack up. Link to comment Share on other sites More sharing options...
Leeds Ram Posted June 8, 2011 Share Posted June 8, 2011 but we do spend more than we earn, doesn't glick keep saying the owners are keeping us afloat with their own money. Link to comment Share on other sites More sharing options...
bcnram Posted June 8, 2011 Share Posted June 8, 2011 but we do spend more than we earn, doesn't glick keep saying the owners are keeping us afloat with their own money. If you read the excellent post by Rotherham more carefully it says 60% of turnover on wages. Let me put it simply for you, if turnover is £10M you are limited to a wage bill of £6M. Link to comment Share on other sites More sharing options...
Leeds Ram Posted June 8, 2011 Share Posted June 8, 2011 that was in response to your comment being this "Derby will no longer spend more than it earns" Link to comment Share on other sites More sharing options...
davenportram Posted June 9, 2011 Share Posted June 9, 2011 yes but i doubt the league will vote for it tbh. Also what is our revenue compared to our new wage structure? It appears that championship clubs voted it in principle, league 2 already have a wage cap in place. http://www.independent.co.uk/sport/football/football-league/championship-clubs-gamble-futures-on-promotion-jackpot-2294780.html Greg Clarke, the League's chairman, revealed yesterday that Championship clubs were likely to follow Uefa's lead, although there had been some resistance. He said: "Championship clubs voted to look at financial fair play, and in principle decided that was the road they wanted to go down. It's a perfect storm in that a lot of things have come together to make this happen, including, of course, the level of debt in the game – £700m in the Football League, most of that in the Championship – and big losses being racked up by the clubs. "These things are never unanimous, and a couple of the clubs would rather not have constraints on how much money they can spend," admitted Clarke. The proposals will be voted on at the League's AGM in Cyprus today. Link to comment Share on other sites More sharing options...
davenportram Posted June 9, 2011 Share Posted June 9, 2011 It appears that championship clubs voted it in principle, league 2 already have a wage cap in place. http://www.independent.co.uk/sport/football/football-league/championship-clubs-gamble-futures-on-promotion-jackpot-2294780.html The football league AGM vote takes place tomorrow. Link to comment Share on other sites More sharing options...
Donny Ram Posted June 9, 2011 Share Posted June 9, 2011 Rotherham, I don't just think this is coincidence, most league Chairpersons will ultimately support this move given the additional cut in TV revenue just around the corner in 2012, this will cut each Championships club income by between £600k and £750k per year. Football is no different, if not worse in some quarters, than any other industry. Lobbying goes off behind the scenes and government pressure is being brought to bare apparently as they, the Government, are fed up with the way football clubs ride rough shot over the HMRC. Very wealthy over seas investors may be put off as they can no longer buy success in the Premier League, not if they want to play in Europe anyway, which leaves us with two other types of owners:- those that have already invested from over seas and those that are local business persons and wanting to do something for the local area (yes they do exist!). This causes a problem to those that have invested already from overseas, how do you get a club with a big fan base out of the Championship without breaking the bank in competing with those throwing tens of millions at it? You impose a wage cap, either squad or income related, similar to those in place in the good old US of A - absolute brainwave, I wonder where this idea could have come from? Tom Glick..!! Link to comment Share on other sites More sharing options...
davenportram Posted June 9, 2011 Share Posted June 9, 2011 I think they played a blinder. Football doesn't suit the US sports business model - okay let's change the Football business model to the US sports business model. Link to comment Share on other sites More sharing options...
dcfcdavecov Posted June 9, 2011 Share Posted June 9, 2011 I don't want to be in the Championship in 2014. Link to comment Share on other sites More sharing options...
ramjam Posted June 9, 2011 Share Posted June 9, 2011 In the Championship, it seems like some similiar rules to the UEFA Financial Fair Play laws will be adopted. What Glick has done is get DCFC on a sound financial footing...if this plays into the wider league strategy then that's great but the long term stability of the club is the most important thing. In terms of the Football League view of healthy finances, this was always bound to happen. It seems that Glick with his vast experience in sports club management anticpated this all along. Over the last few years I think there were some (blind faithers?) who could see the long term value of this strategy and fully backed the board as long as Championship status was retained, maybe a few more can see this now. Link to comment Share on other sites More sharing options...
dcfcdavecov Posted June 9, 2011 Share Posted June 9, 2011 Whatever happens, if we're planning to be in the Chapionship in 2014, then Glick has not played a blinder has he? Link to comment Share on other sites More sharing options...
ramjam Posted June 9, 2011 Share Posted June 9, 2011 Whatever happens, if we're planning to be in the Chapionship in 2014, then Glick has not played a blinder has he? All Glick can do is make sure the football club is financially sound and appropriate and sensible investment is made - which I hope we are seeing now. If we are not seriously challenging for promotion between now ans 2014 I think there are plenty of other areas to considered as failed apart from one man. Link to comment Share on other sites More sharing options...
sage Posted June 9, 2011 Share Posted June 9, 2011 Whatever happens, if we're planning to be in the Chapionship in 2014, then Glick has not played a blinder has he? The point is, clubs have to start planning for it now. Any player being given a 3 year contract now will be affected by this. How many Championship clubs will have a higher wage bill this coming year than last year Answer - Probably no-on except the newly promoted clubs and perhaps DCFC. It's called delayed gratification Link to comment Share on other sites More sharing options...
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