After two years of discussions with the clubs and the players’ association, the Euroleague came up with a new system – CBS (Competitive Balance Standards
Evroli it has been using the concept of “financial fair play” to regulate club spending for a decade, but despite these regulations, class differences between richer and poorer teams are still very evident. For example, recent news suggests that the budget Panathinaikos around 50 million euros, while Zalgiris prepared only six million euros for player salaries. These disparities have long been a topic of discussion among the clubs and leading people of the Euroleague.
In order to solve this issue, Euroleague has, after two years of talks with clubs and the players’ association, designed a new system – CBS (Competitive Balance Standards)which aims to increase balance in the competition. This system works similar to “head salary“ u NBA league, as it places limits on player salary budgets.
The EuroLeague marks a historic milestone as the top European basketball competition introduces Europe’s first-ever salary cap pic.twitter.com/rX59WnolWo
— BasketNews (@BasketNews_com) September 16, 2024
CBS goal is to protect the collective interests of clubs, limit excessive individual expenditure and promote sustainable business ventures in the Euroleague.
The upcoming season will be trial for these measures, while stricter regulations will be introduced in the season 2025-2026. CBS should enable a more even distribution of resources and reduce differences between them big and small clubs in the Euroleague, making the competition more competitive and fair for all participants.
What are the concrete steps:
– Put the goals of all participants in the same line;
– Promote the sustainability and balance of competition;
– Prevent inappropriate actions;
– Cultivate transparency.
What will it look like?
Levels of equal remuneration for players are introduced based on the average income of all licensed Euroleague clubs combined over the period of the last two seasons. Until now, the question has been raised as to how this is possible considering other tax systems in different countries, but the Euroleague believes that it has been solved by calculating everything in net amounts.
According to the new “law”, there are three levels of compensation for all teams – minimum, basic and maximum.
These figures will determine the minimum and maximum that can be spent for each club’s players, with exceptions. This is the first time that there is a minimum that clubs must spend on players – 32 percent of total income!
Clubs that do not have a license, and for now they are the Serbian representatives, Crvena zvezda and Partizan, will have certain reductions when it comes to restrictions.
photo: Pedja Milosavljevic/STARSPORT
Mimimum – 32 percent of the average income of licensed clubs.
Basic level – 40 percent (the maximum that clubs can spend on player salaries – not counting: key players, up to 23 years old, extended contracts with those who have been with the club for a long time, injured for a long time and the exception of one player of medium value per team).
The highest level – 60 percent (the maximum that a club can spend including a “key” player, not counting up to 23 years old, extended contracts with those who have been with the club for a long time, injured for a long time and the exception of one player of medium value per team).
Any club that spends more than maximum, he will have to pay criminal. These “penalties” will be distributed to other clubs that adhere to the restrictions.
Those who spend up to 10 percent more, will pay 50 centimetres after euro, while those who go to 10-30 percent over, will pay 75 cents per euro (those who go beyond the basic level) or euro per euro (clubs who go beyond the highest level). Clubs that spend 30-50 percent over the maximum will pay euro per euro (those who go beyond the basic level) respectively 1,5 euro by euro (which go beyond the highest level).
Source: hotsport.rs
