Schalke propose transfer and payroll cap
15.10.2009
Maintaining on-field competition in the Bundesliga under changing financial conditions: this is the aim of a resolution submitted by FC Schalke 04 to the German Football League for consideration at its meeting on 11 November.
Under the title "Directive for fairer competition", the resolution targets the introduction of an upper limit for transfer and payroll costs that would prohibit clubs from spending more than 70 percent of their total income from television, ticket sales and sponsorship deals in any given season to cover payroll and transfer costs. Additional revenues from investors would not be eligible for inclusion in this total.
The introduction of such a cost control system would allow both sporting and financial objectives to be pursued, with the result that clubs would develop more youth-team players from their own ranks for whom no transfer fees are payable. It would also ensure that clubs are able to invest not just in the team, but also in the stadium, the infrastructure, training facilities and youth development, for example.
Compliance with the 70% rule would have to be monitored, of course. In the model proposed by the Royal Blues, any contravention would be punishable with a substantial fine in the first few seasons and even points deductions later.
"For us it is important that clubs give thought not only to potential investors, but primarily to the ways in which they can put their money to use", said board member Peter Peters, explaining the Schalke proposal. "We cannot allow on-field competition in the Bundesliga to be unnaturally restricted by external factors as it is in other countries."
