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

[FanchesterCity]

Re: City & FFP (continued)

I'm no FFP expert but with this qualification to the last 16 I'd imagine this will surely be a huge boost for the clubs operating accounts!

Oh, and should we be worried about that article?

I don't believe it's a huge boost, no. We get a bit more money, and obviously revenue from two extra games, but the bigger effects are our stature in Europe which then makes us a more attractive proposition for partners / sponsors.

Had we gone out last night, our PR would be all about having failed in Europe yet again. Now it's all about putting on a great display.

Of course we could go out with a whimper in the knockout stages, but it's far less negative that going out in the group stages.

 

[MeatHunterrr]

Re: City & FFP (continued)

I'm no FFP expert but with this qualification to the last 16 I'd imagine this will surely be a huge boost for the clubs operating accounts!

Oh, and should we be worried about that article?

Not a huge boost, but little boost. Around £10m or so.

 

[Citizen Green]

Re: City & FFP (continued)

I'm no FFP expert but with this qualification to the last 16 I'd imagine this will surely be a huge boost for the clubs operating accounts!

Oh, and should we be worried about that article?

I don't believe it's a huge boost, no. We get a bit more money, and obviously revenue from two extra games, but the bigger effects are our stature in Europe which then makes us a more attractive proposition for partners / sponsors.

Had we gone out last night, our PR would be all about having failed in Europe yet again. Now it's all about putting on a great display.

Of course we could go out with a whimper in the knockout stages, but it's far less negative that going out in the group stages.

Okay cheers fella!, and going off your other post, clearly that article is a load of rubbish!.

 

[City1974]

Re: City & FFP (continued)

One interesting club in regard to FFP are Monaco. In the Champions League this season and through to the knockout stages.

Average attendances just under 8,000

http://www.ligue1.com/ligue1/affluences/journee

and despite offloading Rodriquez to Real and the loan of Falcao to Utd they would probably still have a large wage bill

Thus surely they will fail FFP unless they have some mega sponsorship deals.

However it is unlikely they will play in Europe next year as they are currently 7th in Ligue 1

http://www.ligue1.com/ligue1/classement

so unless they win the Champions League and thus automatically qualify as a no. 1 seed for next season, will they simply escape any punishment ?

Also I wonder what will happen to QPR over domestic FFP rules

http://www.financialfairplay.co.uk/

Is FFP about to unravel because it simply will have to much of a detrimental effect on to many clubs ?
Will clubs on the edge of European qualification for the Europa League say, simply not wish to qualify if they feel they will be fined the following season or have transfer embargoes imposed on them ?

 

[mancity dan]

Re: City & FFP (continued)

You could also add Hull to that list, as they are being investigated by UEFA for breaches of FFP. YCNMIU

 

[FanchesterCity]

Re: City & FFP (continued)

I'm no FFP expert but with this qualification to the last 16 I'd imagine this will surely be a huge boost for the clubs operating accounts!

Oh, and should we be worried about that article?

I don't believe it's a huge boost, no. We get a bit more money, and obviously revenue from two extra games, but the bigger effects are our stature in Europe which then makes us a more attractive proposition for partners / sponsors.

Had we gone out last night, our PR would be all about having failed in Europe yet again. Now it's all about putting on a great display.

Of course we could go out with a whimper in the knockout stages, but it's far less negative that going out in the group stages.

Okay cheers fella!, and going off your other post, clearly that article is a load of rubbish!.

I'd say he'd chosen to interpret everything in a very negative light, and not once illustrate the clear improvement in City's image which has made them a highly attractive proposition for fans, sponsors and partners alike.

From the outset, he's chosen to say 'he doesn't know' but offered a the worst interpretation in each instance of his examples. Then the most transparent aspect of all is to mention offshore accounts and topping up player wages, then try to mitigate this with 'of course, nothing to suggest City have done this'. He's trying to associate the two and cover his arse. Which actually doesn't always wash in court. It's like writing an article on a player, then mentioning drugs and alcohol but saying 'there's nothing to suggest the player did this'. It's doing precisely the opposite, it's suggesting exactly what it claims not to, and playing the 'many a true word is spoken in jest' card.

It's a poor article in my view.

 

[FanchesterCity]

Re: City & FFP (continued)

One interesting club in regard to FFP are Monaco. In the Champions League this season and through to the knockout stages.

Average attendances just under 8,000

http://www.ligue1.com/ligue1/affluences/journee

and despite offloading Rodriquez to Real and the loan of Falcao to Utd they would probably still have a large wage bill

Thus surely they will fail FFP unless they have some mega sponsorship deals.

However it is unlikely they will play in Europe next year as they are currently 7th in Ligue 1

http://www.ligue1.com/ligue1/classement

so unless they win the Champions League and thus automatically qualify as a no. 1 seed for next season, will they simply escape any punishment ?

Also I wonder what will happen to QPR over domestic FFP rules

http://www.financialfairplay.co.uk/

Is FFP about to unravel because it simply will have to much of a detrimental effect on to many clubs ?
Will clubs on the edge of European qualification for the Europa League say, simply not wish to qualify if they feel they will be fined the following season or have transfer embargoes imposed on them ?

People (wrongly) have been assuming FFP is all about the rich clubs, and the 'financial doping' - but now the impact is affecting other clubs, they are starting to see how it's actually very restrictive, even for a 'normal' club. The age old scenario of a new owner wanting to pump a load of money into a club to turn around its fortunes affects everybody, even the likes of Hereford or Chester etc. For the moment, UEFA are just scrutinising their own competitions, leaving the rest up to domestic bodies like the FA, but the very same principle applies across the board. They are making it very difficult for someone to plough in a lot of money to change a club.

In our case, we're portrayed as buying success (which is, in part, true) - but it's a very negative image
In the case of a club like Chester, or Hereford, a rich owner would be seen as 'saving the club' and applauded.

in FFP terms, it's the same thing.

 

[Centurions]

Re: City & FFP (continued)

City lowered their wage costs by:

1) Increasing Revenue
This then makes the wage percentage smaller (in comparison to revenue).
Whilst not strictly lowering the absolute cost, many headlines have said 'City reduce wage bill to x%'. The key being 'percent'.

2) Renegotiating Contracts
Several key players renegotiated their contracts for LESS money, yes, you read that correctly, less money.
At first glance this seems absurd, however, the bonuses for success are much larger, thus a player hedges his bets... if he wins things with City, he stands to earn more than ever before, and City know that if they continue to win things, they can afford to pay the bonuses.
To put in into layman's terms.... it's like you boss saying 'Son, I'm going to lower your salary from 30K to 25K, but if we meet our targets, I'll pay you a 15K bonus. So you'll end up with 40K. It's a risk the players have taken - which they should do, if they really believe in themselves and the club.

3) Reduction in Staff
Some staff have been reduced, certainly most of the ones at the old training ground have now been transferred to Manchester University (I think) since they've taken over the facilities and staff.
Obviously, there will be new staff at the new facilities, but these will probably appear on next year's books. I'd also anticipate they've managed to better structure staffing levels as a result of the move.

4) Staff Movement
Some staff moved between MCFC and other parts of CFG, as you might expect from a multinational group of companies. Why pay a marketing team in the USA when they could share one with New York City? (just an example).
Of course, detractors will say it's just avoidance, well yes, it is. Legal avoidance. The kind that every large company in the world employs, including FIFA and UEFA themselves.

The renegotiated contracts were (I think) exclusively done this Summer therefore won't appear until next year.
The staff movement (which is sensible given the structure of CFG) and Mancini and his backroom staff's pay off having already been paid from the previous years accounts form a large percentage of it.

 

[I'm no cynic but...]

Re: City & FFP (continued)

If Scott is implying that City are operating illegally, then has he reported his findings to the relevant authorities?

 

[Centurions]

Re: City & FFP (continued)

If Scott is implying that City are operating illegally, then has he reported his findings to the relevant authorities?

I hope you're not implying that Scott is implying that. He quite clearly says that there is no evidence of us doing any such thing.
Perhaps you missed it in amongst all his theoretical musings about some club doing this while only mentioning us by name.