SALARY CAP COULD BREAK US

3 July 2009

David Yuill
dyuill@southwarknews.org

Millwall Chairman John Berylson believes Millwall will be forced to become a 'small club' if and when a salary cap is enforced across the football league.

The US-based businessman continues to spend his millions on the Bermondsey club but may be forced to limit the wage structure at the Den in line with the tiny attendances - which he insists could cripple the Lions.

Should the chairmen across League One follow their League Two counterparts and enforce the salary cap next summer, manager Kenny Jackett would be forced to limit his spending to less than £3 million-a-year and perhaps fall out of the promotion race.

"I fear that at some point the salary cap will be put in place," Berylson told the 'News'. "And whether it's this summer or next year, we will be in trouble.

"If it is flexible and lets clubs work within a realistic framework, then we will be okay - but if it is linked to the club’s revenues - as seems likely - then we are in serious trouble."

Having come so close to promotion in Jackett's first full season at the club, Berylson says he is confident that the team, the club and the loyal fans are ready for a return to the second tier of English football.

He said: "But the truth of the matter and I have done the maths, is that our revenue is low, our gates and
attendances are low. The result is that we will have to reduce our spending and the fact is clear, we will be forced to become a small club.

"My money and the club's potential will mean nothing when they work out our budgets - they will look at the number of people coming through the door. "Giving tickets away wouldn't count and you cannot hide a few thousand empty seats if you say that they are being bought, as you have to declare these things."

Should the cap be enforced - which is likely to limit clubs to spend just 60 per cent of their turnover on players' salaries - the Lions would have time to streamline their books within a year or two, that could prevent them from competing with the bigger clubs in the division with a larger fanbase. The likes of Leeds, Charlton, Norwich and Southampton this year; Nottingham Forest, Leicester City and Bristol City in previous years - will continue outgun the Lions.

Leeds spent over £7 million in wages last term, while champions Leicester blew almost £8 million while the Lions were closer to £4 million and went on to make more than £6 million in losses.

"They will give us time to get within budget," Berylson continued. "I imagine it will be down to £3.1m. It might be interesting to watch Leeds try to come in under £3m for a year - but we will be forced to do the same, or less.
"But at the same time Leeds get 20,000 through the doors each week and have a good argument to spend the money they do. But with just seven or eight thousand at the Den, my argument gets shorter and shorter and they will be able to continue spending twice as much as us."

Promotion will not provide much respite for Berylson. "Promotion would do two things. Hopefully we would see more fans coming to games and the wage cap would enlarge. But the cap might still make it into the Championship. The limit will be there and it will be tough to improve and grow.

"I know I keep saying it, but this is an eventuality that might be out of my hands. We will only have strength in the number of fans." Berylson learned many things from his big day at Wembley back in May, that saw Scunthorpe scrape to victory. Among the most significant was that more than half of the Lions' fan base did not give addresses in Bermondsey or south London - but Kent.

While the club must maintain its roots in its SE16 heartlands, where a core of fanatics remain passionate, loyal and blue-blooded, Berylson has realised the importance of reaching the long-distance following.
"It was one of the most revealing things from our playoff run," he explained. "The postcodes of more than half of the fans at the final came from well outside the area - more than half lived in Kent.

"That is why we moved the reserve game against Dartford. We wanted to make it more accessible for those fans to see their team."The Football League confirmed that the proposal of a salary cap for League One clubs was a 'virtually constant ongoing discussion'. Speaking hypothetically, a spokesman said: "The league is a democracy of the clubs and it is about the clubs choosing the route we take.

"There is nothing in the pipeline for League One, and the earliest any changes could take place would be next season, as they would have to run season-to-season."

The spokesman did indicate that donations could be made to the club by shareholders as part of their revenue to boost the coffers. They added: "In League Two it is 60 per cent of the turnover. It does include shareholder donations and if a particular chairman wants to give money as a gift rather than on a loan basis - then the club can include that in its definition of turnover."

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