The large increase in players’ wages has led to many clubs struggling to remain competitive. Wages have increased so much that the average footballer is now a millionaire and figures among the richest earners in sport worldwide.
The question remains, can this wage spiral be controlled so that it no longer harms the smaller clubs? The answer is yes, and in football it’s being used in just 2 countries in the world: the USA and Australia. Both Major League Soccer and A-League used what is known as a salary cap, which is a limit as to how much a club can spend on players’ wages on a yearly basis.
The main advantage of such a system is that it ensures that each team is competitive despite their revenue and profits. It ensures parity and equity for the players and keeps the fans on the edge of their seats when it comes to challenging for the title as no one is shoo-in.
The major disadvantage of having a salary cap system in place is that it becomes very difficult for a club to retain its players. As a result, championship-winning teams rarely do stay together for another season. This is exactly what happened when Melbourne Victory won the 2006/07 in dominating fashion. The exodus of various players led to Victory having a disastrous season in 2007/08. The salary cap is an even greater disadvantage in football especially if other leagues do not have a salary cap themselves. As a result, the best players and talent will be taken away from leagues with salary caps, leaving fans with the leftovers.
Nevertheless, I still encourage FIFA and other political bodies to consider the use of the salary cap worldwide. I would rather see talent moving to different leagues rather than see clubs fall and disappear forever.
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