Oyston welcomes tough new rules

Blackpool chairman Karl Oyston
Blackpool chairman Karl Oyston
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Karl Oyston has warned players they are in for a shock when negotiating new contracts.

Blackpool have been busy so far this summer, offering deals to seven out-of-contract players and trying to recruit as many as 10 new stars.

Oyston is known for his tough bargaining at the best of times, but the Pool chairman says his stance will become the norm right across football with the introduction of new Financial Fair Play rules.

From the start of next season, Championship clubs will face strict limits on the losses they will be allowed to make, meaning many will have to make huge cuts to their wage budget.

Clubs making total losses of £4m or more will be hit with either a transfer embargo or a fine that could run into millions.

Clubs will be allowed an operating loss of £4m next season, £3m per season for the following two campaigns and £2m per season from then on.

On top of that, owners will be allowed to invest a maximum £6m of their own capital next season, £5m the following season and £3m the season after that.

Championship clubs in breach of the rules would be fined if they are promoted to the Premier League and hit with a transfer embargo if they remain in the second tier.

As of last summer, the net debt of Championship clubs stood at £0.9billion.

And Oyston says players are finding it hard to come to terms with cuts to their wages.

He told The Gazette: “It’s difficult for a player who has been used to earning five, six or seven thousand a week to be told the only offers available are for three, four or five thousand.

“It’s going to be difficult for a lot of those players to take a step back in their income but that’s what’s happening.

“At the moment players and agents aren’t quite grasping that and are finding it difficult to accept. That isn’t just at this football club, it’s everywhere. It’s not a club’s choice to tighten things – it’s now a regulatory necessity. “Quite rightly it has been enforced.”

The new rules will give Blackpool little cause for concern. The club’s latest accounts show a profit of £16m and around 40 per cent of revenue is currently spent on players’ wages.

However, with their Premier League parachute payments halving to £8m for the coming season, profits may well fall and Pool are expected to spend more than 50 per cent of their income on wages next term.

With the Championship average at 89 per cent, many clubs’ accounts paint a bleak picture. According to a recent report, 17 out of 24 clubs are operating at more than 70 per cent, nine of them spending more than their entire income on wages.

The rules are set to hit the likes of Blackburn Rovers, who could post as much as a £40m loss this year.

Oyston added: “For far too long people have run their businesses horrifically badly.

“These new regulations are the punishment for this, even for those of us who didn’t run our businesses in that way.”