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

[Chippy_boy]

Can I just throw in my comment that IF this Qatar takeover of Spurs happens and IF - as seems increasing likely - the FFP rules are changed so that they are less stringent (with the monitoring period widened to 10 years for example) then I will be right royally PISSED OFF.

It would be ****ing typical that we have been hit hard by FFP and then another club comes along and waltzes right through.

 

[SilverFox2]

Can I just throw in my comment that IF this Qatar takeover of Spurs happens and IF - as seems increasing likely - the FFP rules are changed so that they are less stringent (with the monitoring period widened to 10 years for example) then I will be right royally PISSED OFF.

It would be ****ing typical that we have been hit hard by FFP and then another club comes along and waltzes right through.

Unless of course ADUG takeover a German Team and start an assault on Bayern Munich using profits at City to offset initial losses in Germany via its CFG Holding Company ?
A certain German member of UEFA would be a little concerned I feel.

 

[Chippy_boy]

Can I just throw in my comment that IF this Qatar takeover of Spurs happens and IF - as seems increasing likely - the FFP rules are changed so that they are less stringent (with the monitoring period widened to 10 years for example) then I will be right royally PISSED OFF.

It would be ****ing typical that we have been hit hard by FFP and then another club comes along and waltzes right through.

Unless of course ADUG takeover a German Team and start an assault on Bayern Munich using profits at City to offset initial losses in Germany via its CFG Holding Company ?
A certain German member of UEFA would be a little concerned I feel.

I'd be pretty fucked off about that as well. City profits being spent on a German club? So they can spend whilst we have to pull our reigns in? And that's a good idea? No fucking thank you.

 

[SilverFox2]

Can I just throw in my comment that IF this Qatar takeover of Spurs happens and IF - as seems increasing likely - the FFP rules are changed so that they are less stringent (with the monitoring period widened to 10 years for example) then I will be right royally PISSED OFF.

It would be ****ing typical that we have been hit hard by FFP and then another club comes along and waltzes right through.

Unless of course ADUG takeover a German Team and start an assault on Bayern Munich using profits at City to offset initial losses in Germany via its CFG Holding Company ?
A certain German member of UEFA would be a little concerned I feel.

I'd be pretty fucked off about that as well. City profits being spent on a German club? So they can spend whilst we have to pull our reigns in? And that's a good idea? No fucking thank you.

Depends what you call City profits.

We have been funded by ADUG since takeover so they decide what to do with profits.

ADUG own the whole lot as an investment group.
CFG is the holding company so must hold at least the minimum number of shares in each of its member companies (including MCFC).
City decide how much they would like to spend in the next year (on players and assets etc.). This has to be approved by its owners.
The surplus profit can then be offset against losses made elsewhere within the holding group.
This then allows tax efficient expansion.

Normal within any other group of companies in other sectors of business I think.

Cannot see any reason to form a Holding Company otherwise.

 

[Chippy_boy]

Unless of course ADUG takeover a German Team and start an assault on Bayern Munich using profits at City to offset initial losses in Germany via its CFG Holding Company ?
A certain German member of UEFA would be a little concerned I feel.

I'd be pretty fucked off about that as well. City profits being spent on a German club? So they can spend whilst we have to pull our reigns in? And that's a good idea? No fucking thank you.

Depends what you call City profits.

We have been funded by ADUG since takeover so they decide what to do with profits.

ADUG own the whole lot as an investment group.
CFG is the holding company so must hold at least the minimum number of shares in each of its member companies (including MCFC).
City decide how much they would like to spend in the next year (on players and assets etc.). This has to be approved by its owners.
The surplus profit can then be offset against losses made elsewhere within the holding group.
This then allows tax efficient expansion.

Normal within any other group of companies in other sectors of business I think.

Cannot see any reason to form a Holding Company otherwise.

Depends how you tightly you define the word "profits" I suppose. If you mean net profit after all deductions then, I agree with you.

If you mean operating profit, then no I don't want any of that money going to Germany or anywhere else. If we are only transfering money around after we've spent whatever we need or choose to spend, then fair enough.

 

[SilverFox2]

I'd be pretty fucked off about that as well. City profits being spent on a German club? So they can spend whilst we have to pull our reigns in? And that's a good idea? No fucking thank you.

Depends what you call City profits.

We have been funded by ADUG since takeover so they decide what to do with profits.

ADUG own the whole lot as an investment group.
CFG is the holding company so must hold at least the minimum number of shares in each of its member companies (including MCFC).
City decide how much they would like to spend in the next year (on players and assets etc.). This has to be approved by its owners.
The surplus profit can then be offset against losses made elsewhere within the holding group.
This then allows tax efficient expansion.

Normal within any other group of companies in other sectors of business I think.

Cannot see any reason to form a Holding Company otherwise.

Depends how you tightly you define the word "profits" I suppose. If you mean net profit after all deductions then, I agree with you.

If you mean operating profit, then no I don't want any of that money going to Germany or anywhere else. If we are only transfering money around after we've spent whatever we need or choose to spend, then fair enough.

I am obviously not aware of the detail but this is how I see it happening:

The idea is that MCFC will have their operating profit assessed initially then bonuses will be paid to its officers based on target achievement results (business plan target versus actual financial results).

A total amount for both player and asset investment is then agreed between the owners and its MCFC executives. This then formulates the new business plan for the next year (maybe season).

This is set aside to be used as and when needed and the rest of the profits which would otherwise be taxable can then be made available for tax efficiency by its Holding Company.

Thats how it used to work in other sectors but Football may have special rules.
I very much doubt that just because they make a certain profit then they will be allowed to spend it all.

 

[Chippy_boy]

Depends what you call City profits.

We have been funded by ADUG since takeover so they decide what to do with profits.

ADUG own the whole lot as an investment group.
CFG is the holding company so must hold at least the minimum number of shares in each of its member companies (including MCFC).
City decide how much they would like to spend in the next year (on players and assets etc.). This has to be approved by its owners.
The surplus profit can then be offset against losses made elsewhere within the holding group.
This then allows tax efficient expansion.

Normal within any other group of companies in other sectors of business I think.

Cannot see any reason to form a Holding Company otherwise.

Depends how you tightly you define the word "profits" I suppose. If you mean net profit after all deductions then, I agree with you.

If you mean operating profit, then no I don't want any of that money going to Germany or anywhere else. If we are only transfering money around after we've spent whatever we need or choose to spend, then fair enough.

I am obviously not aware of the detail but this is how I see it happening:

The idea is that MCFC will have their operating profit assessed initially then bonuses will be paid to its officers based on target achievement results (business plan target versus actual financial results).

A total amount for both player and asset investment is then agreed between the owners and its MCFC executives. This then formulates the new business plan for the next year (maybe season).

This is set aside to be used as and when needed and the rest of the profits which would otherwise be taxable can then be made available for tax efficiency by its Holding Company.

Thats how it used to work in other sectors but Football may have special rules.
I very much doubt that just because they make a certain profit then they will be allowed to spend it all.

Seems fair enough. I still don't think us buying a German club is a great idea though, especially if the intention - as doubtless it would be - was to ultimately be winning Bundesleague titles. There'd surely be a drain on resources and spending constraints that we would not otherwise have. For the City Group, it might be a fine plan, but purely from a light blue perspective, no thanks.

 

[Prestwich_Blue]

This thread has taken a somewhat strange turn. FFP is not a problem for us anymore so can I close it?

 

[SilverFox2]

This thread has taken a somewhat strange turn. FFP is not a problem for us anymore so can I close it?

No problem, cannot see how the use of profits to advantage with potential relaxation of FFP rules can be described as strange though ?

 

[hihosilva]

Goodbye FFP thread