Release Date: Jul 05, 2011
OVER the last 18 months the Irish FA has been working with Carling Premiership clubs to create and implement a shared method for controlling costs at clubs.
The Irish FA today outlined to the media the background, rationale and objectives of the protocol. The protocol regulations were confirmed in June 2010 following consultations with the Premiership Management Committee, external financial experts, and other stakeholders. The Salary Cost Protocol will serve to help the clubs operate within their own individual financial limits and clubs have been working over the last 12 months to prepare for this.
Hugh Wade, Chairman of the Premiership Management Committee welcomes the introduction of the new protocol. He said: "The long term survival of our clubs is largely dependent on our financial security. The Salary Cost Protocol is a sound method of ensuring that clubs keep their finances in check and only spend a set percentage of income on players and salaries. Thousands of fans support their local clubs each week, and this will go a long way to ensuring that these clubs have a long term future."
It was also recognised, with a view to the 9 June 2011 implementation, that existing longer term player registration contracts would have to be respected from a legal perspective and this could have the effect of clubs being in excess of their allowable spend immediately upon the implementation of the protocol, which would immediately prohibit any further professional player registrations. Any club who exceeds their total allowable spend at any time shall also be prohibited from any further professional player registrations.
David McVeigh, Irish FA Head of Club Licencing and Facilities said: “Some of the key objectives of the Salary Cost Protocol are to encourage positive trading, achieve a deflationary effect on salaries, a reduction in creditors and to incentivise investment and cost control. With this, and the Irish FA’s duty of care to football fans in mind, the protocol has been formally implemented and will continue to be reviewed and adjusted to ensure that its effect is tangible, measured and effective. The IFA cannot permit clubs to place at risk the hopes and dreams of fans, and the image of the local game, in order to attain short term success.”