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

[john@staustell]

Big thing in the premier league version of FFP is the increase in the wage bill. Limited to £4m a year plus increases in commercial income or something like that.

FFS. They might as well say expenditure is limited to income derived from rag and dipper Asian shirt sales the twats.

Not really. Our commercial income is soaring and our wage bill dropped by loads in the last year 'according to reports', as they say.

 

[fbloke]

Big thing in the premier league version of FFP is the increase in the wage bill. Limited to £4m a year plus increases in commercial income or something like that.

FFS. They might as well say expenditure is limited to income derived from rag and dipper Asian shirt sales the twats.

Not really. Our commercial income is soaring and our wage bill dropped by loads in the last year 'according to reports', as they say.

City are one of very few clubs who can increase the relevant revenues most easily.

The usual irony here that clubs like Hull, Reading, Sunderland etc are the least saleable in commercial terms so they are going to fall back not only commercially year, but now they are increasingly unable to maintain a competitive wage structure. And not only against the bigger clubs but against smaller Spanish, Italian and French clubs too.

None of those leagues have hobbled themselves in the same way.

 

[I'm no cynic but...]

Generally speaking they're of course absolutely fine because they're profitable even with the debt, but not hugely so due to that weight dragging them down. But how does FFP affect United with this supposed £200 million spending plan? Would that not put them in peril over FFP if they splurged it all? Unless they renegotiated or paused their debt repayments anyway? How much can they spend, all things being equal, before it becomes an issue. I'm curious.

When the Glazers actually cough up this £200m, then we'll see. As of yet, they've never shown either the will or the ability to do so, therefore this talk is merely academic!

 

[Champions2012!]

So what is it going to be, this is dragging on forever.

 

[Henkeman]

Generally speaking they're of course absolutely fine because they're profitable even with the debt, but not hugely so due to that weight dragging them down. But how does FFP affect United with this supposed £200 million spending plan? Would that not put them in peril over FFP if they splurged it all? Unless they renegotiated or paused their debt repayments anyway? How much can they spend, all things being equal, before it becomes an issue. I'm curious.

When the Glazers actually cough up this £200m, then we'll see. As of yet, they've never shown either the will or the ability to do so, therefore this talk is merely academic!

Oh I do agree - what I am getting at is whether should the mythical £200 million come to pass, they'd actually be able to do it.

 

[mancity dan]

So what is it going to be, this is dragging on forever.

Don't expect to hear anything till the season has finished. Mid May is my guess.

 

[aguero93:20]

Generally speaking they're of course absolutely fine because they're profitable even with the debt, but not hugely so due to that weight dragging them down. But how does FFP affect United with this supposed £200 million spending plan? Would that not put them in peril over FFP if they splurged it all? Unless they renegotiated or paused their debt repayments anyway? How much can they spend, all things being equal, before it becomes an issue. I'm curious.

When the Glazers actually cough up this £200m, then we'll see. As of yet, they've never shown either the will or the ability to do so, therefore this talk is merely academic!

Oh I do agree - what I am getting at is whether should the mythical £200 million come to pass, they'd actually be able to do it.

Yes, they will. They've got the profits to cover a £200m outlay as a club because the leveraged takeover debt is held by Red Holdings an external company. The BT deal will replace the CL money next year. But here's the thing, with the BT deal as well helping the other clubs out it doesn't give them that much of a financial advantage.<br /><br />-- Wed Apr 23, 2014 1:03 pm --<br /><br />

So what is it going to be, this is dragging on forever.

Don't expect to hear anything till the season has finished. Mid May is my guess.

Yep, UEFA have said any announcements will be in May after they've consulted with the relevant clubs.

 

[blueparrot]

Generally speaking they're of course absolutely fine because they're profitable even with the debt, but not hugely so due to that weight dragging them down. But how does FFP affect United with this supposed £200 million spending plan? Would that not put them in peril over FFP if they splurged it all? Unless they renegotiated or paused their debt repayments anyway? How much can they spend, all things being equal, before it becomes an issue. I'm curious.

When the Glazers actually cough up this £200m, then we'll see. As of yet, they've never shown either the will or the ability to do so, therefore this talk is merely academic!

Oh I do agree - what I am getting at is whether should the mythical £200 million come to pass, they'd actually be able to do it.

I suppose 200 mil would be amortised over 5years so would add £40 mil / year to the books which I guess they could do. However 5 players wanting 200 k / week would be another £52 mil /year that could be more of a problem.

 

[I'm no cynic but...]

When the Glazers actually cough up this £200m, then we'll see. As of yet, they've never shown either the will or the ability to do so, therefore this talk is merely academic!

Oh I do agree - what I am getting at is whether should the mythical £200 million come to pass, they'd actually be able to do it.

I suppose 200 mil would be amortised over 5years so would add £40 mil / year to the books which I guess they could do. However 5 players wanting 200 k / week would be another £52 mil /year that could be more of a problem.

One other major problem, and all fans are the same here, is that once a club does go on such a spending spree, they want it every season! If the rags did splash out, then follow it up with nothing in the years to follow, the Glazers would get even worse stick than they do right now.

 

[Cobwebcat]

Cobweb, you are not getting it mate.

Loans cannot count as income.

So we could take out a huge loan if we want and boost cash reserves (not that there would be any point) but as soon as we spent the money, it would count against us for FFP.

From my earlier post on p83:

I get what he means and is a point I raised right at the start of FFP. I still don't understand why it isn't possible. Forget that loans don't count as revenue I don't think that's the point. The point is that as long as turnover increases to the point that you can afford the interest on the loan then that is a FFP pass. So imagine that in a couple of years we are making a 50 million profit. We then use that profit to pay the interest off on a huge loan at favourable rates. The loan can then be used to buy players. It's exactly what United have done.

Of course it's nonsense for us because we don't need a loan but its a card we could, in theory, play once our turnover could cover our costs plus the annual interest on the loan.

If you can afford the interest on the loan UEFA say that's a pass. The loan is not revenue but it doesn't need to be.

I still don't understand why in the future we couldn't do this once our revenue increased in exactly the same way United have. I don't think it's part of our sustainability plan but the theory is sound as far as I can see. Not now but in the future should we want to suddenly fork out 400 million in a transfer window. We would be in huge debt but debt is not what counts