This is from the regulations the PL clubs just passed:
"Clubs whose total wage bill is more than £52m will only be allowed to increase their wages by £4m per season for the next three years, though that cap does not cover extra money coming in from increases in commercial or matchday income.
Any club breaching the rules will face tough sanctions and Scudamore told reporters that he would be pushing for points deduction."
If you take both these regulations into consideration, what does that mean? I take it as clubs despite having to pay considerably less on transfer fees still can't put that money "saved" directly into using wages as a pulling power on potential transfer targets since a club is only allowed to increase its expenditure on wages by £4m per year.
I also take it as being a huge competitive advantage, in this respect, to already have a high wage bill when the PL regulations kick in since it is of course easier to maintain a high wage bill if you don't have to pay very much on transfer fees.
From a European perspective I take it as PL clubs could be at a considerable disadvantage if the regulations on increase in wage bill is ONLY introduced in England while the regulations on transfers will be for all of Europe.
From an Arsenal perspective I am not sure what I feel. On the one hand it would no longer make sense to sell our star players since we would get considerably less money from them. However, it will be difficult for the club to hang on to those players when interest comes from bigger clubs. On the other hand we would be well placed competing for top class players in the transfer market like Cavanis, Falcaos and Götzes. This due to us still having one of the highest wage bills in Europe.
