21 Dec 2015 23:55:54
Hello eds,

I would appreciate if you could educate me on how EPL contracts are. I a much more knowledgable about American sports contracts, salary caps and ramifications of cutting players in sports like American football. My big reason for asking is seeing how many ask for a big overhaul. You say they need to sell to buy which must be based on overall finances and debts but is a played contract guaranteed? Can a team just cut players and if so what is the financial obligation to the player.

Many thanks.

{Ed002's Note - I would need specific questions but the basis of the need to sell to by is due to financial constraints for clubs to be self-funding and squad size constraints imposed by regulations (all of which vary on a country-by-country basis).

Any club can cut a player at any point thereby making him a free agent. The financial commitment is all of the salary to contract end due immediately and any subsequent bonuses he would have gained being paid as they become due.

It will involve payments to previous clubs and leave the club open to litigation of there are contractual terms related to sell on fees etc.. It doesn't happen - clubs can, toward the end of a contract, buy players out and hope to negotiate a lower cost (that was the old approach the gave Liverpool much debt in the past and provided some of the lessons learned - Degen, El Zhar etc.).

As far as I recall they got lucky once with one player who allowed much of what he was due to be negotiated away as he knew he had suffered injury - one for the good guy list. It remains a pity the fans never saw that and trashed him like any other future, current or former Liverpool player.}


1.) 22 Dec 2015
22 Dec 2015 00:15:11
Was it Michael Owen Ed2?

Aww, please don't leave us hanging Ed.

{Ed002's Note - It was discussed at the time and it was Joe Cole.}


2.) 22 Dec 2015
22 Dec 2015 00:55:02
Thanks you very much answered it. I was just trying to analyze how easy it would be to clear out players if they are not in Klopp long term plans. I have a good concept of American football and how it often will take 2+ years to purge and rebuild whether it is bad players or over priced players using to much salary cap space thus minimizing the ability to spend on youth and promising talent. Seems a tad easier to rebuild for LFC per se but by no means as simple as some seem to portray. In Klopp I trust though!

Buon Natale!

{Ed002's Note - The club went through this a couple of rebuilds ago and it will be the same need to figure out how to best deal with moving the fringe players on. Options (in order of preference) are:
(a) Sell them;
(b) Let them leave by mutual consent on a free - it means paying up any outstanding signing on fee and bonuses if applicaple;
(c) Agree to release them from their contract for a negotiated settlement figure - perhaps all of any outstanding signing on fee and bonuses but maybe half of the wages that would be due for the remainder of the contract - it would a case-by-case negotiation;
{d) Release them from their contract - paying up all outstanding signing on fees, bonuses and wages that would be due for the remainder of the contract.

Liverpool have been financially mismanaged more than most in recent years with the club incurring significant debt (the first three years of tenure of the owners saw losses at £1M per week). They are borrowing still for the stadium and to fund purchases. They have an on-going threat hanging over them in terms of FFP. However, they do have the benefit of significantly increased income from 2017 and they have been doing very well with commercial sponsorship. Don't forget that loans need to be paid off. Don't forget that the club, whilst doing well commercially, has built significant debt. Don't think that when the additional income arrives it can be spent again - it can't. The club needs to be fiscally responsible and needs to work within the frame work of the rules. Many of the fans demand an annual rebuild of the Liverpool squad and accept it will only be one year of transition. Now some seem to have the view that the squad needs to be rebuilt twice a year and the club can afford it because they have this windfall coming in 2017. It is always difficult to explain about finances and I do periodically do it, or try to do it. But the class still struggles with math 101.

As for the salary cap, some countries have one others don't. Some have caps on the % of income that can go on wages - and sometimes it works but more often it strengthens the elite.

Have a great day Pete. There were a number of high-profile football folk from an English side in Colorado only last week for a strategy meeting - an opportunity for some autograph hunting missed.}


3.) 22 Dec 2015
22 Dec 2015 11:04:18
Well I'll be one of the first to say it.

"Fair play Joe Cole" 👌.


4.) 22 Dec 2015
22 Dec 2015 14:06:45
Hopefully this time around things will be done correctly, we can only wait and see.

Let's hope he finds a couple a gems in the youth teams, we know at the start of next season we should have 2 players that have shown glimpses of quality when they were playing in Ings and Gomez. They give us 2 very good options for defence and attack.

We also have at least 2 players on loan that have shown they have a bit about them in ward and markovich.

We have a team that really needs a spine to be fair, if our GK, 1 of CB's was say a level above Sakho, a CM who can properly dictate and control a game, and a ST that can hit 20-25 goals a season. I think we would seriously be looking at a title contending team. 4 players of that quality isn't going to be easy to find, and they probably won't come cheap but it's not unrealistic either. Dosnt require another complete clear out and can be achieved in 2-4 windows.

Think with klopps past there will be a increase in the quality of player we sign without having to break the bank. We do have a number of players that have done well in other prem teams that could be sold then replaced without having to borrow crazy amounts of £££. Can't see Klopp going on a spending spree even if they made the money available, we have seen the best and the worst of our current crop of players and if we can get closer to how we played against city and Southhampton more consistently, which will be the case come next season, things don't look as bad as they have after the games of the last few weeks. Think the reason they feel so bad and cause the negative posts after games, of which I'm guilty as like many of u we come here to type it out and release the anger and frustration, is because we know and have seen how good we can be.


5.) 22 Dec 2015
22 Dec 2015 15:44:52
Math 101.good one. Who were the big wigs in my neck of the woods? Always seem to miss things.

{Ed002's Note - They were from or there related to Chelsea.}