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Pazza

Player Valuation: £950k
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Hi All,

No expert in this and really confused. I understand broadly that you can't spend over and X percentage of incomings etc. I have read we need to get people off wages in order to buy. So is the transfer fee for us not the problem just the high wage bill? If so does that mean if Cenk is off the wage bill if Palace pay the wages does that mean we have some free wages to now spend?

Sorry if I am stupid but just really confused.

Cheers
 

Pazza said:
Hi All,

No expert in this and really confused. I understand broadly that you can't spend over and X percentage of incomings etc. I have read we need to get people off wages in order to buy. So is the transfer fee for us not the problem just the high wage bill? If so does that mean if Cenk is off the wage bill if Palace pay the wages does that mean we have some free wages to now spend?

Sorry if I am stupid but just really confused.

Cheers
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To be honest it is confusing and I see on here and Twitter fans saying we can’t sign players because of FFP. I’m not sure myself how it works

Matt Jones from the blueroom interviewed a guy from the Financial Times about the Usmanov interview and he mentioned ffp only comes into play if you’re in Europe/champions league. Though I presume the Premmier league/FA have their own rules.

When Moshiri first arrived I remember reading it’s was all about wages and you can only increase your wage bill by 7mil a year. Not sure if that’s still the case.
 
If we get wages off the bill, we have that to spend on transfer fees and wages. Ditto that for transfer fees - we can throw that money at wages and transfer fees.

The problem is that we're overpaying these players on wages. That means that their agents won't agree to transfers, because their players would be making less money at another club.

When that happens, your options are limited to loaning the players out for part of their wages. You then run the contracts out and let them go on a free transfer.

This is vastly less efficient than selling the player for a transfer fee and getting all of the wages off the books right away. It's egregiously poor and shameful asset management. Walsh was the prime offender, though the Brands buys this summer also look poor.
 

I’ve found that blues are always very quick to make the board’s excuses for them, they certainly were during the Kenwright years. This window won’t be dissimilar to the summer window imo. There will be a focus on getting rid of the dross before looking to invest, but I think that’s just because it makes sense business wise, rather than some panic to adhere to FFP.
 
What I can see is FFP for the premier league basically restricts the increase of your wage bill by upto £7m extra per year and restricts the losses (sporting through the general running of the club) to £105m over a three year period, I assume that if you've got a clever accountant the losses can be re-jigged however you feel but if we are close to that figure already then (unless we want to be sanctioned by the premier league) we may be handcuffed as what we can lay out on players until that money is either brought in by sales or finances are increased by commercial exploitations. Not read into FIFAs and what that means to us.
 
Martin Alvito said:
If we get wages off the bill, we have that to spend on transfer fees and wages. Ditto that for transfer fees - we can throw that money at wages and transfer fees.

The problem is that we're overpaying these players on wages. That means that their agents won't agree to transfers, because their players would be making less money at another club.

When that happens, your options are limited to loaning the players out for part of their wages. You then run the contracts out and let them go on a free transfer.

This is vastly less efficient than selling the player for a transfer fee and getting all of the wages off the books right away. It's egregiously poor and shameful asset management. Walsh was the prime offender, though the Brands buys this summer also look poor.
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Walsh has done us a lot of damage, which hopefully isnt long term, but Brands isnt perfect either.
My main worry is Moshiri not keeping a real eye on thing and only thinking about the ground, just letting us spend spend spend can be fatal. With nothing to play for now could be a good time not to spend anything.
 

Houghty19 said:
What I can see is FFP for the premier league basically restricts the increase of your wage bill by upto £7m extra per year and restricts the losses (sporting through the general running of the club) to £105m over a three year period. Not read into FIFAs and what that means to us.
Click to expand...

That will be the issue for us, the 105 million over the three year period.
 
FFP, in a nutshell, is running a club's finance in a sustainable way within limits imposed by the football regulators. Hence why sacking managers or buying poor players sets us back years.
 

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