League One and Two sides BANNED from paying transfer fees in January under terms of Prem’s £250m bai

Discussion in 'Sunderland' started by Dave_39, Dec 4, 2020.

  1. Dave_39

    Dave_39 Well-Known Member

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    CLUBS in League One and League Two have been BANNED from paying transfer fees in January under the terms of their £250million bailout from the Premier League.

    Top-flight officials have been locked in talks with the EFL for weeks in a bid to negotiate a bailout.

    The two parties finally came to an agreement on Thursday, with the Premier League helping to secure a £200m loan for Championship teams.

    A further £50m is available in grants for clubs in Leagues One and Two.

    However, if teams in the lower two divisions apply for the grants, they will be hit by a host of strict spending limits.

    As part of the deal, those clubs will not allowed to spend any money on transfers in the forthcoming window.

    Even next season, League One clubs are forbidden from spending more than £20,000 in transfer fees in the two windows.

    League Two clubs have their transfer limit capped at a meagre £10,000.

    Even then, clubs will only be allowed to sign a player on a free under certain strict conditions.

    A club can only bring in a new player if another one leaves AND if the incoming star earns 75 per cent or less of the departing player's salary.

    The Premier League have agreed to give £15m to Leagues One and Two up front.

    Clubs in League One will receive £375,000 each, with League Two sides pocketing £250,000 apiece.

    A further £15m will be dished out to teams based on money lost in ticket sales up until the end of this year.

    Another £20m has been made available for clubs who are struggling the most.

    It is under this 'monitored' grant - overseen by the Premier League and EFL - that clubs will have their transfer spending capped.

    If a team breaches the terms of the grant, they will be forced to repay the money lent in full.

    In the Championship, the Premier League was limited to giving them a maximum of £15m, but that £15m will be used to secure a monster £200m loan, which will be divided between the 24 clubs equally, interest free.

    Each second-tier club is set to receive £8.33m.

    The Premier League had initially refused to offer the Championship any funding, with many bigger clubs seen as rivals to the top-tier sides.

    The EFL rejected their initial £50m offer on principle in October, but after finally agreeing to a deal, EFL chief Rick Parry claimed: "Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.

    "I am pleased that we have now reached a resolution on behalf of our clubs, which will provide much needed support and clarity."

    League One and Two sides BANNED from paying transfer fees in January under terms of Prem’s £250m bailout (thesun.co.uk)

    Another reason why we've got to get promoted this season
     
    #1
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  2. Comfy

    Comfy Well-Known Member

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    That’s gonna be a big problem for us if we take up the offer of the grant but with the new owners coming in I’m hoping we don’t need any help out with money, hopefully when the crowds get back in we’ll be making money again
     
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  3. Guinness Guzzler

    Guinness Guzzler Well-Known Member

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    Sounds bad until you read the text. So we still get the £375k and we get the proportional part of the £15m (which won't be much but will be more for us than others get). With that money (probably about £800k in total) and the new investment from a billionaire, we shouldn't be one of the clubs needing to go cap in hand for part of an additional £20m which seems to be the only bit that comes with strings attached
     
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  4. Makemstine Roger

    Makemstine Roger Well-Known Member

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    in return the prem league should be made to pay a fair price for poaching youngsters from the lower leagues only fair i think
     
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  5. monty987

    monty987 Well-Known Member

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    Don't need the loan with new owners coming in, and we need players in January so don't take up this offer, nice gesture though and for some clubs great. what would happen if Man c come in for Danny graham and offered £40m ? (just a hypothesis/fantacy mind)
     
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  6. Nacho

    Nacho Well-Known Member

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    Donald would probably try to renegotiate for 50 mil.
     
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  7. Nads

    Nads Well-Known Member

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    Yeah only applies if we take a part of the grant, which with the takeover and such we simply shouldn’t need.

    We should be one of about 5 clubs able to spend.
     
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  8. Bank of England 2

    Bank of England 2 Well-Known Member

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    This could actually work in our favour. Clubs desperate for money and unable to spend. We don't take up that offer and hoover up all the young pacy talent from clubs who are on the breadline. Biggest problem this will create will be the lack of opportunity to offload our crocks to other clubs, because let's face it, no side higher up the tree is likely to want O'Brien, Maguire, Power etc.... May have to pay them off, if we are allowed.
     
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  9. Late goal Scorer

    Late goal Scorer Active Member

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    Pay offs count towards cap apparently so no benefit. Players not in the 25 man squad don’t count though so could just leave them out like McGeady was. Shows what a farce the cap is. We could just leave Matthews, Graham, O’Brien out and free up around 12k a week for wages whilst having a load of players we have to pay but can’t actually play. I’d argue that potentially an unlawful restriction of trade.
     
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  10. Disco down under

    Disco down under Well-Known Member

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    Yeah, sack it off and take the huge advantage that gives us.

    Long term, we will be far better off.
     
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  11. Comfy

    Comfy Well-Known Member

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    Correct on restriction of trade that’s why the court of arbitration will block it, this was rushed through if we remember and there’s bound to be loads of loopholes around it that can be circumvented for our benefit. I’d imagine that Dreyfus and sartori would have people with a bit more nous around them then the idiots at the efl. Looking at it I think the efl know this but at least they’ve got a season out of it to look as if they’re trying to save clubs in this **** time
     
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  12. Nads

    Nads Well-Known Member

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    Only issue with that is if we missed promotion could be a points deduction, and if we spent a few years Championship it’s a painful fine.

    Sure QPR got hit with about £40million.
     
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  13. Disco down under

    Disco down under Well-Known Member

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    Isn't that more than what City got???

    That feels a bit upside down.
     
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  14. Nads

    Nads Well-Known Member

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    Yrah it was massively more. It was upheld on appeal as well, but I don’t know if the fine was reduced at that point.
     
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  15. Nads

    Nads Well-Known Member

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    04838051-A371-4666-84CF-5C2B2CEDA4DC.png

    Nope, they ‘settled’ at £42 million so it started higher.
     
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  16. Disco down under

    Disco down under Well-Known Member

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    So, don't **** with the EFL basically. Feck.
     
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  17. Nads

    Nads Well-Known Member

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    If I recall rightly, they pissed promotion and assumed it wouldn’t matter as they’d stay up and the 3 year cycle would pass, but they got Redknapped and went down and got royally fisted.
     
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