As was discussed in part one of this article, the salary cap placed upon NFL sides increased competition in American football. Yet there are many reasons as to why the monopoly of league titles across Europe will not be broken, if a salary cap is imposed (assuming Football is made exempt from normal labour laws).

For example, if a salary cap was to be implemented for the 2009/10 season, clubs in Spain would have a massive advantage over their English and Italian counterparts, given the tax legislation in each of the countries.

Real Madrid and Barcelona would be able to give a player more money, after tax, as tax for foreign nationals in the first five years of their residence is at a relatively measly 23%, while in England it would be at 50% for those earning over £150,000 a year, and a similar figure is in place in Italy. This affects the competitive nature of European competitions such as the Champions League and the Europa League.

Similarly, television money (as does matchday revenue and commercial interests - shown in this Deloitte Football Money League 2009) would also affect a side’s competitiveness, with some teams in Italy and Spain negotiating broadcast deals individually instead of with the rest of the league, as is the case in the EPL. Increasing a side’s revenue in such a manner as Madrid did, signing a TV deal with MediaPro in 2006, reportedly worth €1bn, helps form a monopoly, with Madrid then able to offer better wages and higher fees than their rivals in Spain or indeed, on the continent. Thus TV deals, which are negotiated with the league as a whole, would be another obstacle for a salary cap to be effective.

Furthermore, the majority of players are likelier to join a side of prestige than one of the increasing number of the footballing nouveau riche, although there will always be the odd exception, especially if the notion of a marquee player is introduced (a player whose wages would be exempt from the salary cap). Despite some of these dilemmas to an entirely hypothetical situation, as club expenditure is reduced, the race for financial power and billionaires would slow down and one would hope that eventually debts would also fall.

A more profitable model as evident in the German Bundesliga could even be conceivable. While a by-law for sides in the EPL to be at least 51%-owned by fans/club members of the same country, instead of investors, foreign or not, may be difficult to achieve (given that some clubs like Wolfsburg are owned by companies, thus effectively evading this rule), it is less important given that great financial power is less influential in the grand scheme of things.

Although one could argue, a greater emphasis/expenditure on marketing, pre-season tours to football hotbeds, such as in the Far East and Africa, could increase income of some sides. But this would be put down to initiative of the club, with the main focus still hypothetically on the coaching and professionalism and abilities of the players. Debt is very well controlled in Germany and the sensible economics of the clubs means that ticket prices are among the lowest in Europe, with Germany having the highest match-day attendances in Europe.

If the tax issues and the broadcasting revenue-sharing problems were to be solved and a general capping figure agreed by all bodies involved for the leagues across Europe, a salary cap could work hypothetically. Although even this depends on football being exempt from the Treaty of Rome. At the moment, such a solution seems pleasing, but upon further investigation, to keep competition equal, it just isn’t remotely possible.

It is instead a mere pipe dream for the insignificant fan who is increasingly disillusioned at the amount of money and lack of player loyalty in the game. (ed -Tomorrow’s final part of the article looks at the possibility of incorporating a player draft into European football)