PDA

View Full Version : New wage structure?



rcarter1
23-06-2012, 07:39 AM
Given all the hoo-ha about the financial plight of football I wonder if there are ways for Hibs to operate a wage structure that would safeguard the club while at the same time rewarding players for good performances.

The idea would be based on paying wages linked directly to turnover.

For example, players wages could be fixed to be 40% of turnover.

A new player would be offered a basic guaranteed salary based on a turnover of say 4 million.

40% of 4million is 1.6 million, so for a squad of 24, that would mean an average basic wage of
£66,667 annual salary (1282/week).

After this players would receive quarterly bonuses, based on turnover. If after the year, actual turnover was 6 million, the excess 2 million (at 40%) would be distributed to player wages. This amounts to 800,000 divided amongst the squad. (average over 24 players = £33,333 or 641/week)

Players would be given a proportion of this based on how much their basic wage is (i.e. a player on 2000 basic gets twice as much as one on 1000 basic).

If Hibs had a great season, the players actually put the effort in, went on a few cup runs, and stayed competitive and exciting, one could imagine turnover could be as high as 8+ million by the end.

This would in effect double each players salary - the reward for bring the supporters into the stadium.
If the players under perform, lose the belief of the fans (i.e. last season - cup run), they will directly feel it in the pocket.

Regardless of how the season went however, Hibs would be able to guarantee that player wages were not harming the clubs ability to operate. I have no idea if this kind of contract offer to players would be legal, but I can't see a reason why. From the players point of view, they could look at Hibs turnover over the last few seasons to get an impression of what their 'bonus' salary is likely to be, while having an element of security in the form of their basic.

This could be particularly motivating for the younger players just coming through, and if a season starts well, could help reinforce the need to keep up the good work (How many post Christmas collapses have we seen from Hibs after otherwise strong starts?).

erin go bragh
23-06-2012, 08:35 AM
Brilliant stuff mate :top marks

Mind you ,our post xmas slump has turned in to a pre season slump .

ggtth

VickMackie
23-06-2012, 09:42 AM
Smart thinking but no chance of it happening.

Why would I put myself on a variable salary with a slow starting wage as a footballer? The football world simply doesn't work that way?

And who wants to go to the bank to secure a mortgage based on their employers turnover?

Turnover doesn't really mean much, the owners could rack up 10 million debt on top and next season there is no club.

Kris1875
23-06-2012, 09:54 AM
Good idea though it may cause a bit of aggro and resentment amongst the players if a few aren't good enough which in turn causes dropped points which causes less wages etc.

Eyrie
23-06-2012, 10:05 AM
Pretty sure that the players will already have bonuses based on final league placing and how far we get in the cups. Hopefully set at nil for being in the bottom six and not making at least the quarter finals in either cup.

JustSimplyHibs
23-06-2012, 11:33 AM
Given all the hoo-ha about the financial plight of football I wonder if there are ways for Hibs to operate a wage structure that would safeguard the club while at the same time rewarding players for good performances.

The idea would be based on paying wages linked directly to turnover.

For example, players wages could be fixed to be 40% of turnover.

A new player would be offered a basic guaranteed salary based on a turnover of say 4 million.

40% of 4million is 1.6 million, so for a squad of 24, that would mean an average basic wage of
£66,667 annual salary (1282/week).

After this players would receive quarterly bonuses, based on turnover. If after the year, actual turnover was 6 million, the excess 2 million (at 40%) would be distributed to player wages. This amounts to 800,000 divided amongst the squad. (average over 24 players = £33,333 or 641/week)

Players would be given a proportion of this based on how much their basic wage is (i.e. a player on 2000 basic gets twice as much as one on 1000 basic).

If Hibs had a great season, the players actually put the effort in, went on a few cup runs, and stayed competitive and exciting, one could imagine turnover could be as high as 8+ million by the end.

This would in effect double each players salary - the reward for bring the supporters into the stadium.
If the players under perform, lose the belief of the fans (i.e. last season - cup run), they will directly feel it in the pocket.

Regardless of how the season went however, Hibs would be able to guarantee that player wages were not harming the clubs ability to operate. I have no idea if this kind of contract offer to players would be legal, but I can't see a reason why. From the players point of view, they could look at Hibs turnover over the last few seasons to get an impression of what their 'bonus' salary is likely to be, while having an element of security in the form of their basic.

This could be particularly motivating for the younger players just coming through, and if a season starts well, could help reinforce the need to keep up the good work (How many post Christmas collapses have we seen from Hibs after otherwise strong starts?).


This would be a good idea if Scottish Football went down the same root as Germany wage cap system, rather than competing in a league that sees teams paying over and above the basic salary mentioned.

I would like to hear the views of the other clubs on a wage cap system, as Celtic could potentialy dominanate and stifle the Scottish game, if allowed to pay over and above for a better qualitty of player.

One thing a wage cap structure would do is create an even competition, which could only be good for the whole game.

rcarter1
23-06-2012, 04:28 PM
Smart thinking but no chance of it happening.

Why would I put myself on a variable salary with a slow starting wage as a footballer? The football world simply doesn't work that way?

The wage isn't necessarily slow, its just that the actual amount earned by the end of the year will be subject to the outcome of the season. In as much as season ticket revenue contributes a large part to the final turnover, the club would have reasonable degree of confidence in terms of predicting likely turnover. It would be the cup runs, europe, and a generally good season that would really bring the extra rewards to the players. Another way to put it is that Hibs could offer a player a set 1500/week, or they could take a basic 1000, that would rise to 1500 in a moderate season, 2000 in a good season, and perhaps more in a really good season. If I were that player, I would be more motivated by the prospect of making it a good season than dwelling on what I were to lose should the season goes pear shaped. No doubt different players would see it differently, Id rather sign players optimistic and determined enough to put faith in their own ability to get the job done.

And who wants to go to the bank to secure a mortgage based on their employers turnover?

They would go to the bank with their guaranteed wage, and the bank could easily look at the clubs last five years financial performance to get close to what the player will take in. How different is this to a player on a one year contract looking for a 25 year mortgage?

Turnover doesn't really mean much, the owners could rack up 10 million debt on top and next season there is no club.

I agree that an irresponsible owner could still drive the club into financial meltdown, by loans and exorbitant transfer fees. The system as described doesn't protect from an irresponsible owner, but rather buffers the club from the consequences of a bad season on the pitch (and hence presumably lower crowds and turnover). My point is that should players perform poorly, in either effort or ability, it should be them that take some of the burden, and not leave the club in the lurch. I.e. it protects to an extent from wage thieves.