City and FFP article

[S04]

Projecture..Like anyone knows how much we will earn this season alone, or from what.

We got an accountant as acting chairman, it ought to tell us something perhaps?
Like that the numbers will be what they are supposed to be at a guess.
Even if Abu Dhabi might have to interfere a little, prod some multinational company is not beyond their powers if we need some more money from outside sources.

That said, City are taking FFPR seriously, Khaldoon is very doubtfull about the current business model in football in general.

 

[BlueAnorak]

Of course we will fail. FFP stands for Football Fixed Permanently. It is nothing to do with Fair play.

That said, UEFA is not applying serious FFP penalties till 2016 though it is monitoring FFP starting with NEXT seasons accounts. So even if we fail UEFA won't do much till 2016. Even then it is a mute point as to what penalties UEFA can apply without getting hammered in the courts - especially with the state sanctioned support of Real Madrid (National Government) and Barca (regional government).

As to Ed Thompon's figures he does over egg the pudding against us - what did you expect? He is biased. He is NOT the Swiss Rambler who at least is consistent.

1. The commercial revenues are just plain wrong. The Ethiad deal will be around £40m a year (not £35m). He is clearly making the assumption that that UEFA is only allowing £35m as 'fair value'. The Umbro deal from a year ago is not included (if it is the other commercial revenues are plainly wrong) nor is the updated deal with Nike for 2012/13 (owners of Umbro). The benefit from winning the Championship is also omitted. I would say his commercials are £5m light for 2011/12 and probably £10m light for 2012/13. (-£15m for the monitoring period). I'm sure exclusions are higher too - but I'll ignore them for now.

2. Although it is nice to know that he thinks we will repeat winning the tile or that we will win the Champions League we will not shell out that much (£17.6m) on player bonuses a season. I estimate about £10m (-7.6m for the monitoring period)

3. Amortisation remains at a high level (£84m) throughout his figures. This is incorrect. It will drop a little bit in 2012/13 but will drop to around £50m by 2016. The norm for new players will be a 5 year contract to minimise this in our future accounts BTW. (I would guess -£5m for the monitoring period)

4. The profit from player sales is also wrong. Adebayor on his own will net us at least £8m
We will buy some players this season (about £30m extra on top of sales) however, I don't think wages will change much. Also the time period we buy new players over is important we are unlikely to pay up front as we have been doing.

SO my guess is he's about £27.5m too high PER SEASON
or £55m over the 1st monitoring period so we shall fail by about £10m. Thereafter we get inside the limit.

 

[Blue Coop]

Articles like this are always interesting to read but such a waste of time if you don't know the accuracy of the figures involved, like the author of the article just posted. Instead of spending time writing up long winded articles like this to twist the outcome to whichever he most desires, he could have simply sat back and watched how the club act throughout the upcoming transfer window. This will ultimately be the most telling factor.

The fact that it is judged over a 3 year period actually works to our advantage; if we continue to increase revenue in line with how you would expect for a club that has grown as quickly as we have, in 3 years time who knows where we might be. People are already expecting over £100m+ improvements on the huge losses posted last year, and in 3 years time the global appeal of the club will only grow, obviously depending on how well we market ourselves.

 

[St Helens Blue (Exiled)]

Haven't read the link and have no intention of doing so.

I know nothing about wages,amortisation etc but from what I have read from Prestwich blue who seems to be well up on this I have no fear about FFP.

surely Chelsea are the ones who are going to struggle despite winning the european cup.?

Our income streams are only going to rocket and I am sure there may be a few more sponsorship deals in the pipeline.

I have no fear at all of being banned from europe etc but I still fucking hate Platini. Can't wait for his beloved PSG to fail. Funny how he hasn't mentioned anything about the Italian match fixing scandal....

The cosy cartel has been broken and the media,Uefa,Fifa and anyone who doesn't like Man City don't like that fact.!!

 

[Prestwich_Blue]

By 63 million. I thought the moving in the right direction clause would save us but apparently not according to this guy. He seems to think that front loading of sponsor deal is only way to save ourselves but that UEFA won't allow it.

I seriously doubt our costs will exceed 340M come season 12/13.

I sent the article to Prestwich Blue to see if he could make sense of it...too much for my brain. Hopefully he has a different take.

Thanks for that. Only had a quick look at it but it looks to be some way out. It won't be comfortable in the first couple of years but I believe we'll manage it. From then on, it should be straightforward. Just got to go out but I'll put forward my own estimates when I get back.

 

[jrb]

Can't be arse reading it. There will be numerous other similar articles before the figures finally come out.

Guessing here.

He's probably also forgot the £3mill saved when Tevez went AWOL.

 

[greenfingers]

Of course we will fail. FFP stands for Football Fixed Permanently. It is nothing to do with Fair play.

That said, UEFA is not applying serious FFP penalties till 2016 though it is monitoring FFP starting with NEXT seasons accounts. So even if we fail UEFA won't do much till 2016. Even then it is a mute point as to what penalties UEFA can apply without getting hammered in the courts - especially with the state sanctioned support of Real Madrid (National Government) and Barca (regional government).

As to Ed Thompon's figures he does over egg the pudding against us - what did you expect? He is biased. He is NOT the Swiss Rambler who at least is consistent.

1. The commercial revenues are just plain wrong. The Ethiad deal will be around £40m a year (not £35m). He is clearly making the assumption that that UEFA is only allowing £35m as 'fair value'. The Umbro deal from a year ago is not included (if it is the other commercial revenues are plainly wrong) nor is the updated deal with Nike for 2012/13 (owners of Umbro). The benefit from winning the Championship is also omitted. I would say his commercials are £5m light for 2011/12 and probably £10m light for 2012/13. (-£15m for the monitoring period). I'm sure exclusions are higher too - but I'll ignore them for now.

2. Although it is nice to know that he thinks we will repeat winning the tile or that we will win the Champions League we will not shell out that much (£17.6m) on player bonuses a season. I estimate about £10m (-7.6m for the monitoring period)

3. Amortisation remains at a high level (£84m) throughout his figures. This is incorrect. It will drop a little bit in 2012/13 but will drop to around £50m by 2016. The norm for new players will be a 5 year contract to minimise this in our future accounts BTW. (I would guess -£5m for the monitoring period)

4. The profit from player sales is also wrong. Adebayor on his own will net us at least £8m
We will buy some players this season (about £30m extra on top of sales) however, I don't think wages will change much. Also the time period we buy new players over is important we are unlikely to pay up front as we have been doing.

SO my guess is he's about £27.5m too high PER SEASON
or £55m over the 1st monitoring period so we shall fail by about £10m. Thereafter we get inside the limit.

I tend to agree with your assessment of the figures - if the projection of us failing by around £10m is about correct then I am sure that the Club will also have a future projection which they can "manipulate" so that we either don't fail or else fail by only a very small marjin.

In my opinion it is always best with financial figures/projections to lay down a marker and then keep near to it for future years.

 

[Lordeffingham]

I do not claim to know much about the finer points of the FFP regulations and what they will/won't achieve, but as already pointed out, I feel the chances of them actually standing up to a proper legal test are very slim indeed.
Rules/laws are and always will be, open to legal challenge, but fundamentally the main issues must be that for anything to be legislated and described as 'fair play', all those to be governed by such rules must be seen to be on an equal and level footing, otherwise they cannot be considered right or fair.
When different Clubs from different Countries have some massively differing and incredibly advantagious financial deals in place, which are not afforded to other similar competetors, how can the rules be equally or fairly applied?
To me, I fully expect EUFA and Plattini to embarrass themselves at the first point they attempt to test the water, and apply any embargo on any Club apparently failing their prescribed limitation.

 

[City Raider]

I seriously doubt our costs will exceed 340M come season 12/13.

I sent the article to Prestwich Blue to see if he could make sense of it...too much for my brain. Hopefully he has a different take.

Thanks for that. Only had a quick look at it but it looks to be some way out. It won't be comfortable in the first couple of years but I believe we'll manage it. From then on, it should be straightforward. Just got to go out but I'll put forward my own estimates when I get back.

So PB is it possible to give an idea of the sort of transfer kitty we will have season in season out or are there too many variables?

 

[LoveCity]

Do these write-ups ever taken loan fees into account? Like last season we got £3million for Adebayor and £1million for M. Johnson. We may also have gotten loan fees for some of our other players. Tallied up, it's almost like a player sold.