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

[Chippy_boy]

Re: City & FFP (continued)

A quick question for those that are well up on FFP. Realistically, what could we afford to spend next year? If, for instance, we make £20 million profit, does that mean we can spend £50 million in total (which would put us a £30 million loss overall which is allowed)?

The reason why I ask is that will we ever be able to spend £70-£100 like Real for a truly world class player, or will doing so instantly put us in contravention of FFP for the following year?

I think the point is mate the trajectory our finances are on is ridiculous. We have come from nowhere and grown our revenues faster than anyone could have imagined and this will continue at a pace. So whereas we are only just now into profit, in future we will be ridiculously profitable.

The Uniteds and Real Madrids have been given a massive wake up call as to how to run a successful footballing business and they are now miles behind what we are doing with our global model and the huge investment in the academy.

I am not saying we are going to be bigger than them overnight, but we certainly won't be the poor relation.

Yes, but most clubs have to get a return on capital invested - usually because they have borrowed it from elsewhere. City can just invest hundreds of Million in the infrastructure of the club in a way that very few if any clubs can do.

True. Good, isn't it :-)

 

[I'm no cynic but...]

Re: City & FFP (continued)

The reason why I ask is that will we ever be able to spend £70-£100 like Real for a truly world class player, or will doing so instantly put us in contravention of FFP for the following year?

Isn't Reus's buyout fixed around the 25m mark ;-)

That may or may not be the case, but at that price he will attract quite an auction and whoever signs him will thus find him costly, as the Suarez farce 12 months ago could illustrate. And at that price, he will be Bayern bound unless another club is prepared to substantially top that £25m, plus the player's wage demands. I'm sure his agent is already working flat out behind the scenes.

 

[Nascent Blues]

Re: City & FFP (continued)

A quick question for those that are well up on FFP. Realistically, what could we afford to spend next year? If, for instance, we make £20 million profit, does that mean we can spend £50 million in total (which would put us a £30 million loss overall which is allowed)?

The reason why I ask is that will we ever be able to spend £70-£100 like Real for a truly world class player, or will doing so instantly put us in contravention of FFP for the following year?

I think the point is mate the trajectory our finances are on is ridiculous. We have come from nowhere and grown our revenues faster than anyone could have imagined and this will continue at a pace. So whereas we are only just now into profit, in future we will be ridiculously profitable.

The Uniteds and Real Madrids have been given a massive wake up call as to how to run a successful footballing business and they are now miles behind what we are doing with our global model and the huge investment in the academy.

I am not saying we are going to be bigger than them overnight, but we certainly won't be the poor relation.

Yeah, I suppose I was thinking more short term (something our owners are not particularly fixated on, unlike some owners). I also forgot about the Negredo money too.

Don't get me wrong, I don't want the club to splash out just because we can, but knowing that if we really wanted a player from the very top shelf in the future - and they wanted to come - then we wouldn't be hamstrung.

Cheers for the response.

 

[EalingBlue2]

Re: City & FFP (continued)

In answer to the question what we can spend depends on many factors. What that player brings to the table commercially, length of contract etc. it also depends on having transfer sanctions lifted by being break even. Assuming they are I have no doubt we could afford to sign a player like messi for 150m + on a five year deal at 300k a week. If we did this it would cost us 45m a year and I have no doubt we could pay for it through sponsors and shirt sales. So in answer if messi or Ronaldo we're viable we would be in like Flynn

 

[Bluewonder]

Re: City & FFP (continued)

A quick question for those that are well up on FFP. Realistically, what could we afford to spend next year? If, for instance, we make £20 million profit, does that mean we can spend £50 million in total (which would put us a £30 million loss overall which is allowed)?

The reason why I ask is that will we ever be able to spend £70-£100 like Real for a truly world class player, or will doing so instantly put us in contravention of FFP for the following year?

Soriano predicts our revenue for the 2014-2015 season to be around £400m. With our wage bill being around £230m (plus a few other operating costs) that leaves a huge reservoir of cash to spunk on our own galacticos.

 

[Bluewonder]

Re: City & FFP (continued)

You could ask then to guarantee the debts certainly. And to prove they had the liquidity to do so, or even to put money into bonds to cover the debts.

But that wouldn't do anything to fix the "unfairness" of club A being able to spend £150m on transfers and club B only £20m, would it.

No but it would put a stop to the large majority of people that think that FFP was brought in to prevent 'another Portstmouth' from happening

Who would that be? I don't think anyone's falling for that old bollocks any more mate.

I had a couple of docile Scousers on Twitter telling me it would prevent another Portsmouth and accusing me of being a conspiracist when I explained that it was to protect a few elite clubs.

 

[Bodicoteblue]

Re: City & FFP (continued)

No but it would put a stop to the large majority of people that think that FFP was brought in to prevent 'another Portstmouth' from happening

Who would that be? I don't think anyone's falling for that old bollocks any more mate.

I had a couple of docile Scousers on Twitter telling me it would prevent another Portsmouth and accusing me of being a conspiracist when I explained that it was to protect a few elite clubs.

If I remember back to last night on talksh*t , when collymore was putting the boot into FFP , a rag came on to tell us that he thought FFP was working well because it was doing what it was introduced to do. When asked by stan what he thought it was introduced to do, he answered that it was preventing "oligarchs and oil sheiks from buying the title.
Sadly ,Collymore failed to take him up on that, but there was no doubt in the rag's mind as to the purpose of FFP.

 

[Wilf Wild 1937]

Re: City & FFP (continued)

Soriano predicts our revenue for the 2014-2015 season to be around £400m

That's interesting. Didn't "The Equaliser" recently predict £385m - £395m for the Scum for 2014-15?

 

[Marvin]

Re: City & FFP (continued)

Soriano predicts our revenue for the 2014-2015 season to be around £400m

That's interesting. Didn't "The Equaliser" recently predict £385m - £395m for the Scum for 2014-15?

Man Utd's own statement accompanying their results said
Outlook

For fiscal 2015, Manchester United expects:
Revenue to be £385m to £395m.
Adjusted EBITDA to be £90m to £95m.

 

[I'm no cynic but...]

Re: City & FFP (continued)

Soriano predicts our revenue for the 2014-2015 season to be around £400m

That's interesting. Didn't "The Equaliser" recently predict £385m - £395m for the Scum for 2014-15?

You know what will happen. Accusations from red persuasions claiming that "the Sheikh" is panicking and is cooking the books.
You won't need to be psychic to forecast that.