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

[The Stockport Iniesta]

so the biggest clubs in the world are in financial trouble - and you don't think the money is running out. OK.

Thats because some of those clubs are run incompetently. The clowns at Barca would bankrupt a bookies.

 

[Esteban de la Sexface]

They are yeah, because uefa decided to block investment instead of regulating debt.

regulating debt blocks investment

they need to regulate salaries and transfers to make a fair and sustainable competition. Investment in facilities etc can be at the behest of the owner or the club but if clubs didn't have to spend 100's of millions a year on wages or 200m on transfer fees the debt would be regulated anyway. It's out of control. Regulating debt based on revenue is just FFP mark 2 and anti competition.

 

[dickie davies]

I'm in favour of some sort of financial controls rather than allowing unrestricted spending. Inflation in transfer fees caused by for example a Neymar transfer is not good for the game. FFP rules would have been much better if it had accounted for debt control and some kind of allowances in losses over a period.

There are financial controls
The club says "no"
How many players have we walked away from because the selling club has priced the player too high, the player's agent (family in Isco's case) is asking too much, or the player's wage demands are far too high

As Khaldoon said "don't hold City responsible for other clubs mismanagement "

 

[aguero93:20]

regulating debt blocks investment

they need to regulate salaries and transfers to make a fair and sustainable competition. Investment in facilities etc can be at the behest of the owner or the club but if clubs didn't have to spend 100's of millions a year on wages or 200m on transfer fees the debt would be regulated anyway. It's out of control. Regulating debt based on revenue is just FFP mark 2 and anti competition.

Regulating debt blocks borrowing, not investment.

 

[waspish]

I made the point about the football group and the unlimited funds. We are owned by one of the wealthiest people on the planet who can pump in as much money as necessary.

None of these are lies. Plain truth. Bury your head all you want.

Now all the other shit you agree with is stuff that chap has made up because he lives in a blue bubble and hasn't the coping mechanisms required to objectively look at a situation

how much has he pumped into Manchester City in the last 5 years?

 

[Esteban de la Sexface]

Why do you?

It's quite simple really - it's a pretty unique industry that needs competition to be sustainable. One team winning everything because they are financially superior isn't sustainable. There needs to be hope for smaller clubs.

I'm not talking about capping individual salaries pal. I'm talking like the NFL where the cap is a percentage of the leagues revenue and teams can spend it how they see fit within the cap.

I don't think regulating investment and debt is possible legally as we've seen with FFP 1.0. Any other form of it is similarly wrong in my view.

It needs to be internal to the finances of football. It works in other sports, that we're gone out of control salary wise. Why not football?

 

[Esteban de la Sexface]

Regulating debt blocks borrowing, not investment.

how do you regulate it? based on what? revenue? Hello FFP 2.0. As unfair as regulating investment and anti-competition

 

[Kazzydeyna]

regulating debt blocks investment

they need to regulate salaries and transfers to make a fair and sustainable competition. Investment in facilities etc can be at the behest of the owner or the club but if clubs didn't have to spend 100's of millions a year on wages or 200m on transfer fees the debt would be regulated anyway. It's out of control. Regulating debt based on revenue is just FFP mark 2 and anti competition.

They DONT have to spend 100s of millions a year on salaries OR transfers. They choose to, chasing a dream, trying to buy success. It’s disgusting. Some might call it financial doping. I’m glad City have never gone down this immoral route

If they were restricted from getting into unmanageable debt (like every other business and individual is) by debt regulation they wouldn’t be able to spend 100s of millions if they didn’t have it, leading to a much more sustainable model of the game.
If clubs couldn’t send 100s of millions, selling clubs couldn’t ask 200m for one player.

It’s a virtuous circle.
Limit debt -> limit exposure -> Encourage financial prudence -> Make clubs look for value -> More sensible transfer fees and wages -> Less debt -> Happy days.

Another analogy: Business X wants to spend 200m on new premises on a turnover of 20m PA. The bank would say “sorry, can’t lend you that much, its too risky. Be more prudent, look for savings and come back next year and we will see what we can do” Next year that business is likely still trading. If the bank says “go on then. It’s a risk but who cares” and there’s a downturn in the economy and the bank calls its debt in, that business goes bust. If however business X takes on a new shareholder and he puts his own cash into the business, no debt is issues, the business gets its investment and everyone is a winner.

Actually that analogy was far too long winded but i got half way through typing it and stuck it out.

Clubs will NEVER go bust from having too much money. They will ALWAYS go bust from not having enough to cove costs.

Investment = Good.
Excessive debt (financial cheating) = Bad.

It’s so simple a united fan could understand it. They wouldn’t agree, but they’d understand it. (Not sure about a scouser. Depends if he finished school (debatable)).

 

[waspish]

The premier ffp % increase in wages per year was a good way around bringing finances under control! Guess what Gill clicked his fingers took that out of ffp Because his club needed to invest in players plus new contracts! Now that **** Gill is the problem in football

 

[BolinCell]

Also watch out for the salary cap, yet to be announced how it would be implemented. I know how it would be implemented, like FFP was implemented with the cartel clubs like Madrid and United having bigger allowed salaries than the likes of City, Chelsea and medium sized clubs. Meaning the likes of Madrid can once again hog the best players in the world because they have a much larger salary threshold. How very convenient.