Salary Cost Management Protocol (SCMP) explained - Please read

Clubs in the League 1 and League 2 operate within a Spending Constraint framework termed Salary Cost Management Protocol (SMCP). 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.

Initially introduced into League 2 in 2004/5 for guidance purposes, sanctions for breaching the SCMP thresholds were introduced during the 2011/12 season, with Swindon the first club to be sanctioned under the rules.

The process is interactive with clubs providing the Football League with projections for the spending for the coming season. During the season the clubs provide regular updates on their Turnover and wage bill. Any club that is forecasting a wage spend within 5% of the figure will be scrutinised more closely. Where a club is on course to exceed the limits, the Football League will apply a Transfer Embargo. Crucially, a club doesn't have to overspend to incur the embargo, it only needs to shown to be heading for an overspend. This interactive approach enables clubs to increase their wage bill if their circumstances improve - a successful cup run will generate increased income and the Football League may be able to sanction additional wage spend. Because SCMP doesn't rely on the retrospective scrutiny of club accounts, it is also extremely effective at stopping overspend before the spending actually occurs (something that has been a problem for the Championship's version of FFP).

The Football League's website's explanation of the rules doesn't go into a great deal of detail about how they operate. However they have responded to enquiries and confirmed a number of areas that help us to better understand the rules.

 

To year end May 2013 we had salary costs of 7.7mill on a turnover of 9.125m

Assuming no drop in turnover (!) we'd have to cut costs then to 5.475m.

These figure include ALL staff costs, not just players, but it gives an idea of what needs to happen

 

People need to remember that in league one we are playing by different rules. Some might not like the rules and I'm one of those but that's how it goes.

It's all done on your money into the club and ONLY money into the club at that time will be included. You can't say or well we'll be selling him next week or we'll buy him this week if your close to the total line.

The Turnover pies split into two parts. 60% and a 40%. The 60% is for wages over players 21 and over. The 40% piece is for others footballing matters like Transfer fees and young players. I would also imagine football club staff wages are took out before this pies made.

Steele 5K Kennedy 3.5 Cranie 5K O'grady 6K Jennings 4K (all just guesses) and taking too much of the pie away. That would equal 1,222,000 over the full season and my understanding is we have to consider that as out now of the budget even though we'll be getting income right throughout the season.

So the club have today said we want to get rid of players, these are the ones we think we can get rid of okay.

I don't think we are skint though and that would back up the transfer Fee of Hourihane and they tried to get the Halifax striker too. Read they agreed a tranfer fee of about 200K for him too.

 

Looks like we need to put together a good Cup run then.

 

Also in those accounts, football staff went up from 92 to 108, directors remuneration went from 80k to 130k, and if it hadn't been for transfer fees we'd have made a loss of nearly 900k.

Assuming I've read the accounts correctly.

 

Thing is though, we won't get a striker near enough as good as O'Grady on less money than what he is on, the same could be said for Steele (I know you're not a fan but we'll just leave it there).

I personally don't think that Jennings will be on £4k but as you've said its all guess work. I think we should keep him and if what Radio Sheffield are saying that's the plan.


Ideally, I'd like to Keep O'Grady, Jennings and Steele. Craine is replaceable and Tom Kennedy is Tom Kennedy.

 

Why limit ourselves? I think 3 good cup runs will help (FA, League and Johnstones paint), or at least one run (JPT) and two kindly draws against PL opposition with big followings.

 

I don't think Jennings' wages are included.

This SCMP is causing us a problem though, just the most basic of maths and guesses shows we need to shift COG and another on, the wages of those 2 will cover 5 or 6 new players wages. I honestly think we are near the 60% as we stand today, so no new players until we move some on.

Which players wages are included from our current squad?

 

I understood the original post, but now you've explained it I'm confused. These turnover pies, I'm guessing they're not like apple turnovers?

 

It's a delicate balance of keeping players that are of actual quality and can play well and conforming to these rules.

Is it worth selling O'Grady and his goals for 2 players that might be below average?

 

Those 2 players might come in and do well.

 

Jennings and Nyatanga are both excluded from SCMP rules I believe.


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I'd prefer to keep O'Grady. I think he's a great player. However, if he's told Mansford that he'd like to leave should the right offer come along, we've got to sell now rather than risk that happening in late August when we haven't time to find a replacement. If it got that late in the day we could say he's not for sale, but we all know how much power players hold these days. Chris O'Grady doesn't strike me as the type of bloke who would refuse to play, like others have threatened to do in the past, I think he's better than that, but how good would a demotivated Chris O'Grady be, a player who really wants to be elsewhere?

 

My opinion on the players are positive all of them but O'grady and jennings would be the ones that I wouldn't be confident in getting a BETTER player in.

I said it on a PM to Whitey but it's all about 20 year olds and small transfer fees for me.
Transfer fee to get the players you want from league two clubs and as many 20 year olds you can ram into your 23 man squad.

Honestly If we CAN get transfer fees for Steele Cranie Kennedy.

For example.
Luke Steele Say he's on 5K a week and we could get 300K for him. We would be saving 260ish K from the 60% pie and would be able to top that pot up with 60% of the 300K so 180K. with the wages and 60% of the transfer fee that would equal 430K

Right we need to replace him, and they don't think Davies is good enough (I don't know the clubs opinion on him just saying for the process)
We get a Ben Amos in who's a good goalkeeper, former England u21 and might be available on a free or to loan. Say loan it would cost the club 2K a week. So the club could add 330K to the pot and have a replacement their for the season.

Ideally the club could sell Steele and get in a 20 year old Goalkeeper in on loan or a free.

PS I'm presuming Transfers are split 60/40. If they aren't then it would work differently and even more would be saved for over aged wages.

 

I talk about a pie and then splitting it Jay because it's split. It's not all one pot of Money like in the champ that you can do what you want with.

 

An Steele again...


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Swap the name it could be any of them. I choose the goalkeeper because we might NOT be looking for a replacement if we sold him and that I could pick a name out of the air that would be realistic.

 

Relegated clubs

The rules apply to all clubs and there is no moratorium for clubs relegated from the Championship. However, Transitional Arrangements are in place whereby clubs are allowed to exclude the wage costs of all players that the club signed pre September of the relegation season, if they were signed on contracts in excess of 3 seasons.

Don't recall Nyatanga getting 3 yrs

 

Neither are exempt from it because Nyatanga signed a two year deal and Jennings as 2 and not three years running on is deal

 

I'm pretty sure Jennings is exempt. I thought Lewin had 3 years but I'm an old geezer so pretty forgetful.


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