City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)

[Shaelumstash]

Re: City & FFP (continued)

Just double checking. Anyone.

Did United splash £150mill because FFPR doesn't apply to them this season as they aren't in the CL? Meaning they may have to rein in their spending next Summer to comply with FFPR once again, if they get into the CL next season?

Europa League you mean. ;)
It's probably CL or bust for them this year, if they get top 4 they'll be fine, if they don't they won't be able to finish the overhaul of their squad and will be in big trouble.

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

 

[blueparrot]

Re: City & FFP (continued)

Just double checking. Anyone.

Did United splash £150mill because FFPR doesn't apply to them this season as they aren't in the CL? Meaning they may have to rein in their spending next Summer to comply with FFPR once again, if they get into the CL next season?

Europa League you mean. ;)
It's probably CL or bust for them this year, if they get top 4 they'll be fine, if they don't they won't be able to finish the overhaul of their squad and will be in big trouble.

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

Doesn't the adidas deal get cut by £30 mill if they fail to qualify for next years champions league ?

 

[bluechampion7891]

Re: City & FFP (continued)

Just double checking. Anyone.

Did United splash £150mill because FFPR doesn't apply to them this season as they aren't in the CL? Meaning they may have to rein in their spending next Summer to comply with FFPR once again, if they get into the CL next season?

Europa League you mean. ;)
It's probably CL or bust for them this year, if they get top 4 they'll be fine, if they don't they won't be able to finish the overhaul of their squad and will be in big trouble.

they willl have 1 more season where they won't be monitored I think. Same as liverpool, so if they want they can probably spend, not sure if the Glazers would be that forthcoming especially with the Debt being called in 2016 IIRC.

 

[Henkeman]

Re: City & FFP (continued)

Just double checking. Anyone.

Did United splash £150mill because FFPR doesn't apply to them this season as they aren't in the CL? Meaning they may have to rein in their spending next Summer to comply with FFPR once again, if they get into the CL next season?

Europa League you mean. ;)
It's probably CL or bust for them this year, if they get top 4 they'll be fine, if they don't they won't be able to finish the overhaul of their squad and will be in big trouble.

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

It's the BT deal that changes that.

 

[sam-caddick]

Re: City & FFP (continued)

Just double checking. Anyone.

Did United splash £150mill because FFPR doesn't apply to them this season as they aren't in the CL? Meaning they may have to rein in their spending next Summer to comply with FFPR once again, if they get into the CL next season?

From Martin Samuel in The Mail:

HOW CAN UNITED AFFORD TO PAY FOR THEIR £200M SPENDING SPREE?


Q United’s spending is up to £200m. How can they afford it?

A When the dust settles it won’t be quite as big as that. The combined transfer fees for Angel di Maria, Ander Herrera, Luke Shaw, Marcos Rojo, Vanja Milinkovic, Daley Blind and the loan fee for Radamel Falcao will total around £160m. But a few sales, including Alex Buttner, Bebe and Shinji Kagawa, will bring net spend closer to £120m.

Q Fine, but £120m is still a gob-smacking sum . . .

A United are, by far, the biggest earners in English football. The latest available full accounts, for 2012-13, showed income of £363m, and gross profit £146m, albeit before debt servicing had been applied. For 2013-14, United’s income will have been around £430m, with big profits. In 2014-15, they are expected to have total income of £500m or more, by which time they should have recaptured their title of the richest club in the world, by income, from Real Madrid and Barcelona.

Q Why has their income grown so quickly?

A Of three main revenue streams — matchday income, commercial and broadcasting — the first is stable and the other two are soaring. New deals with Chevrolet and Adidas alone will boost United’s income by £80m a year. Global commercial deals with everyone from noodle suppliers, paint manufacturers and mobile firms are booming. If it can be monetised, United are doing it. And TV cash is growing, for United more than most.

Q Aren’t profits wiped out by loan repayments for the club’s debt?

A Only to an extent. The last set of financial accounts showed annual debt-related payments were an eye-watering £71m for the year in interest, debt restructuring and repayments. That’s £1.37m a week, or £195,000 a day, or £8,127 every hour. But that still leaves tens of millions spare. That ‘spare’ sum is growing by the year. Total debt is down from around £550m back then to ‘only’ £389m and falling. United’s accounts also show there has been a ‘spare’ pot of cash of around £100m in the bank for the past few years, available to be spent. It’s being spent now.

Q Can they keep spending like this?

A They won’t be able to spend £120m net every year. The point of doing it this time is they have needed to redress the under-spending of the past few years. They also need to get back into the Champions League, which plugs them back into another revenue stream, worth £50m a year, give or take. In some ways spending now is an attempt to guarantee bigger future income.


Read more: http://www.dailymail.co.uk/sport/fo...hester-United-panic-buying.html#ixzz3CAhHJyfA
Follow us: @MailOnline on Twitter | DailyMail on Facebook

 

[Shaelumstash]

Re: City & FFP (continued)

Europa League you mean. ;)
It's probably CL or bust for them this year, if they get top 4 they'll be fine, if they don't they won't be able to finish the overhaul of their squad and will be in big trouble.

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

It's the BT deal that changes that.

Yeh you're absolutely right, I hadn't considered that. They "blew Sky out of the water" didn't they. Can you remember how much each club will get out of that deal?

 

[Shaelumstash]

Re: City & FFP (continued)

Europa League you mean. ;)
It's probably CL or bust for them this year, if they get top 4 they'll be fine, if they don't they won't be able to finish the overhaul of their squad and will be in big trouble.

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

Doesn't the adidas deal get cut by £30 mill if they fail to qualify for next years champions league ?

I think you're probably right about that, although I would imagine it's offset to a certain extent by the bonus payments they wouldn't have to pay to their players for reaching CL?

 

[aguero93:20]

Re: City & FFP (continued)

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

It's the BT deal that changes that.

Yeh you're absolutely right, I hadn't considered that. They "blew Sky out of the water" didn't they. Can you remember how much each club will get out of that deal?

The CL one? Something like £30-40m extra after UEFA line their pockets take theirs.
All the scum's new sponsorship deals will be performance related now that it's been shown they can't guarantee they'll be successful. Plus massive extra player costs, plus that BT CL deal, means if they miss top 4 they'll have no financial advantage.

 

[Henkeman]

Re: City & FFP (continued)

Do you not think the way their commercial revenue is growing that they are sustainable without CL? The £75m a year from adidas and £50m a year or whatever is is from Chevrolet seems to make the £40m a year CL revenue seem rather small fry.

It's the BT deal that changes that.

Yeh you're absolutely right, I hadn't considered that. They "blew Sky out of the water" didn't they. Can you remember how much each club will get out of that deal?

Depends who you believe! £70-100 million is the range being talked about.

 

[BluessinceHydeRoad]

Re: City & FFP (continued)

Martin Samuel asks how Manchester United can afford it, and this finds its way into the FFPR thread. The FFPR were framed to make sure that spending for many clubs actually has nothing at all to do with what they can afford. That is their point. Nobody can be in any doubt that Sheikh Mansour, Roman Abramovich and some of the other Russian billionaires, or the Qataris at PSG can "afford" to spend sums which would reduce the Glazers, Kroenke, John W Henry and his Merry Men to impotence as a permanent condition, so FFPR simply announce that an owner's personal wealth can make no contribution to a club's revenue, which is defined as income from "football related sources". This raises the question as to whether a club can afford, or has any moral right, to spend £160 million or £200 million (+ millions more in wages each year), at a time when they owe more than twice that amount, but this is a question which doesn't even trouble Michel Platini's moral compass. This is the agreement of 2006: Platini doesn't want a breakaway - English style 1992 - so to keep the income from the CL, give the "big" clubs (2006 version) what they want permanently.