davids
Player Valuation: £70m
Doubt they enticed him to sign by telling him the transfer cupboard was bare either.
- Status
So what I have worked out by the posts so far is............those at the top when these rules came in with higher incomes will always be able to spend loads. Even if our owner pumped in more money it may mean we fall foul of the laws?
Its simple really, you are allowed make a loss of 105 mill over a three year period, essentially 35 mill a year.
We currently have lost
£13 mill in 17/18
£95-100 mill in the next set of accounts.
£35 mill (so far and still active) in this financial year up to June 20.
So accumulated we are operating at 140 odd mill loss and need to get that figure down.
So you are allowed knock of the cost of women's & underage football, also the cost of EITC.
We can also knock off the cost of what we have spent on the ground, but only when planning permission is granted - its estimated at 30 -40 mill.
So you can see over the next two (at least) three year cycles we are very close to the wind on meeting the regulations, especially heading into this and next summer transfer window.
Essentially there is very little money in the business and we are struggling not to be making very big losses and breaching regulations.
Key things are the difference between investment capital and income. We may have wealthy investors, willing to invest capital however as you can see that is capped at 35 mill per year (loss). So its hard getting investment into the business.
What we really need is income (money made) as this drives down the loss. Its why a 100 mill sponsorship deal is by far what we need beyond a gift of 100 mill investment.
If you cant make income through sponsorship or commercial deals, then you are looking to player trading to mitigate your losses and we are touching that.
For example if we sold Richarlson for 90 mill essentially you see what that income does to our loss figure over the three year periods and our ability to invest and spend. Its why we sold Lookman, Gueye and a few other in the summer.
We currently have lost
£13 mill in 17/18
£95-100 mill in the next set of accounts.
£35 mill (so far and still active) in this financial year up to June 20.
So accumulated we are operating at 140 odd mill loss and need to get that figure down.
So you are allowed knock of the cost of women's & underage football, also the cost of EITC.
We can also knock off the cost of what we have spent on the ground, but only when planning permission is granted - its estimated at 30 -40 mill.
So you can see over the next two (at least) three year cycles we are very close to the wind on meeting the regulations, especially heading into this and next summer transfer window.
Essentially there is very little money in the business and we are struggling not to be making very big losses and breaching regulations.
Key things are the difference between investment capital and income. We may have wealthy investors, willing to invest capital however as you can see that is capped at 35 mill per year (loss). So its hard getting investment into the business.
What we really need is income (money made) as this drives down the loss. Its why a 100 mill sponsorship deal is by far what we need beyond a gift of 100 mill investment.
If you cant make income through sponsorship or commercial deals, then you are looking to player trading to mitigate your losses and we are touching that.
For example if we sold Richarlson for 90 mill essentially you see what that income does to our loss figure over the three year periods and our ability to invest and spend. Its why we sold Lookman, Gueye and a few other in the summer.
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Undisputed_blue
Player Valuation: £8m
Brands gave a simple answer last summer. One player out one player in. Let me know if this is too complicated.
Sorry if I had heard that I wouldn’t have asked about FPP. Don’t recall it your highness!
Lloydystark
Player Valuation: £35m
Are you actually roger milla? If so could you start v Brighton for us
Abraders
Player Valuation: £60m
7m a year is only about 130k a week to put that in perspective too.
APN_EFC
Player Valuation: £25m
I think it limits the amount of extra money an individual or company can put in beyond 'normal sponsorship' and 'normal income from football and broadcasting deals'. it is supposed to prevent a repeat of Abramovich and Abu Dhabi money. But they have found a way around it by paying over the odds for sponsorship deals as a way of getting money into the club, and I think it's one way in which we have got smart finally. a USM Finch Farm makes no sense, but basically it was a way in for money to the club.
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