Help FFP

[davids]

Persuading a manager of Ancelotti's ilk to join us and giving him a reported £11.5m a year are't the actions of a skint club.

Doubt they enticed him to sign by telling him the transfer cupboard was bare either.

 

[Pazza]

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?

 

[Neiler]

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.

 

[Undisputed_blue]

I wanted a more simpleton answer than the ESK would provide!

Brands gave a simple answer last summer. One player out one player in. Let me know if this is too complicated.

 

[Pazza]

Sorry if I had heard that I wouldn’t have asked about FPP. Don’t recall it your highness!

 

[Lloydystark]

FFP is a load of bollocks. Just in place to keep the status quo after City upset it. If we have money we should be able to spend it.

Are you actually roger milla? If so could you start v Brighton for us

 

[Abraders]

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.

7m a year is only about 130k a week to put that in perspective too.

 

[APN_EFC]

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

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.