Yes, boundaries are tested, but closed-league structures mean that deep down all owners realise that the value of their product does ultimately lie in the collective. Together, quite the disincentive to take a bite of the forbidden apple.įormula 1 could look to American team sports for reassurance that spending caps can be implemented and policed effectively. In addition, a team’s budget for the season after that is reduced $ for $ in line with their previous overspend. So, 10% overspend equals 10% of points won are wiped out in the subsequent year. My starting suggestion? A current season points deduction equal to the percentage spending overrun in the previous year. And if retrospective, to reset the previous year’s outcome while it still lived large in the memory.Īs to possible penalties, it would be easy to concoct a meaningful schedule, but far harder to implement given the lengthy and difficult process undertaken to agree the new financial regulations in the first place. This would be early enough for any penalty - whether financial or sporting - to have genuine impact on the current season. These would be sufficient for a regulator to start its work, with final verdicts being reached on the back of audited results and announced by, say, the end of May. Any self-respecting business should be able to hand over a set of unaudited December management accounts by mid February. The FIA has given itself a headache by taking far too long to comb the figures. And any deduction for this season would likely be irrelevant given how far the Dutch driver is ahead in the race for the title. It’s hard to envisage Red Bull being deducted points from last season, so overturning what was already a hugely controversial championship victory for Max Verstappen. People in glass houses shouldn’t throw stones.” Christian Horner, Red Bull have been investigated for weeks and months, so maybe he doesn’t speak to his CFO.” Toto Wolff, Mercedes It was a huge mammoth project to make the cap. We have made more than 40 people redundant, who are dearly missed. For now, we have the latest chapter in the Toto Wolff / Christian Horner soap opera. Sanctions (probably, possibly?) to follow. The outcome of the FIA’s scrutiny of all ten teams’ books was said to be have been due on 5 October but has been pushed back by at least five days. The media is reporting fingers being pointed at Red Bull for a major breach of the regulations and Aston Minor for a minor one. This framework has been credited with bringing much-needed financial stability to teams up and down the grid. The chatter in the paddock at the F1 Grand Prix in Singapore last weekend was of two teams alleged to have broken the sport’s new budget restrictions. With rugby clubs financially stressed, carping that the post-covid lowering of the salary cap is making the Premiership uncompetitive in the international market for talent has suddenly dimmed. Last month UEFA fined eight European teams a minimum of €26 million for financial breaches - tokenism by comparison with Sarries’ punishment given football’s far greater wealth. The scandal at Saracens which effectively led to their relegation in 2020 had ‘off the books’ payments to key players at its heart, thereby circumventing the Premiership salary cap. Put a ceiling on spending in elite sport and you can be sure that it will be tested in the search for success. It had previously managed to overturn a European ban. Man City was fined €10 million in 2020 for failing to cooperate with UEFA’s investigation into possible breaches of financial fair play regulations. Smelt off and anyway I didn’t hear from him again.īut then in April this year, Der Spiegel published a list of allegations about Manchester City’s finances which included the suggestion that former manager Roberto Mancini had benefited from what it described as a ‘fictitious consultancy contract’ that was ‘paid without deduction of any taxation.’ Turns out split employment might actually be a ‘thing’ in football after all. One of the lures was that half the salary would be paid outside the UK in a low tax jurisdiction, ostensibly for services rendered directly to the club’s overseas owners. He was building his long list of possible candidates. The headhunter was calling me about a CEO role at a top six Premier League club.
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