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

Re: City & FFP (continued)

Manchester City need only to draw with West Ham on Sunday to win the Premier League and, while the ghosts of calamities past hovered during the goalless first hour of Wednesday's 4-0 victory over Aston Villa, there is no longer genuine dread at City that something has to go wrong.

Sergio Agüero slayed many of City's demons with his stoppage-time winner in that nerve-shredding final game against Queens Park Rangers to seize the title two years ago and the talk has not, as in 2012, been all about the trophyless years since the 1970s. Six years and a still barely believable £1bn into the club's ownership by Sheikh Mansour, of Abu Dhabi's ruling Al Nahyan family, this is a transformed Manchester City.

Expected to claim their second title in three seasons, the League Cup won, a place in the Champions League knockout stage secured, City are where Mansour's executives, led by the chairman, Khaldoon Al Mubarak, targeted them to be by now. They have world-class footballers in each position, a manager they sought – whose calm and charm has been admired – a "brand" going global, with clubs bought in New York and Melbourne, while attending to thankful fans and local roots: a modern, corporate sports organisation, growing accustomed to getting what it wants.

That is why the talk during the run-in this time – raining on City's planned parade – about Uefa's "investigatory chamber" finding the club's £151m loss in 2011-12 and 2012-13 in breach of the financial fair play rules, has upset the ownership so markedly. Uefa set a deadline of Friday for City to accept a €60m (£49m) settlement to be paid to the European governing body over three years, a 21-player limit to next season's Champions League squad and a wage cap to the current level.

City's executives are understood to argue emphatically that they have not breached the rules, and are particularly affronted that their sponsorships with Abu Dhabi companies and the country's tourist authority have been called into question – and, on Friday, the deadline passed with no action by Uefa. It is now said that Uefa will decide on Monday what to do next; whether to stick with its finding and refer City to potentially tougher sanctions from its "adjudicatory chamber", which the club's ownership will almost certainly fight.

While, in crude terms, the Abu Dhabi relaunching of Manchester City is the most spectacular injection of cash by an owner to buy rapid success in football history – anathema to traditionalists and influential German clubs that are still owned by their supporters and have always sought to break even, financially – inside City, they pride themselves on having done things professionally and properly.

Uefa's break-even rules – the stated aim of which is to encourage financial responsibility and dampen down player wage inflation – limits clubs' losses to €45m between 2011 and 2013. City are understood to be adamant, however, that their £151m loss is brought within that much smaller limit after they discount major expenditure on youth development, community work and infrastructure, which is allowed by Uefa to encourage long-term progression.

The rules also say clubs will be considered "favourably" if their £37m deficit is due to their loss in 2011-12, and was due to player wages on contracts signed before the rules came into force. City, who lost £99m in 2011-12 and £52m in 2012-13, are understood to believe this applies to their situation.

Galling to City was the apparent Uefa determination that the sponsorships with Abu Dhabi companies – including the airline Etihad's £35m a year naming rights for the stadium, shirt and new training campus – are not "fair value"; that they are more lucrative given their connections with Mansour. City insist their sponsorships were properly agreed, and that Etihad receives good value, as opposed to the Qatar tourist authority's €200m per year deal with Paris Saint-Germain, which looks flagrantly overpriced.

Uefa's investigators are also thought not to have accepted the two deals that City's accounts stated had earned them £47m in 2012-13: £22m selling their branding, football and other expertise to their own women's and New York teams; £25m selling players' image rights to third-party agencies. Again, City executives argued these were genuine transactions for good corporate reasons.

More generally, they argue that they have shaped their football project the right way, whatever people feel about the gulf states' extraordinary super-funding to claim English and European trophies. They point to City's extensive community activities and the enormous campus – a £200m development on 80 acres taking concrete shape across Ashton New Road – where they will aim to develop young players. One corner, on 5.5 acres, has been given to a new college, sports centre and swimming pool, at a £20m cost to City, improving a blighted area of east Manchester.

After the loadsamoney talk of the first few days after Mansour's 2008 takeover – fronted then by the Dubai entrepreneur Sulaiman Al Fahim – Al Mubarak, a senior government advisor on his country's image and strategy, has steered a more seemly course, Manchester City being the most far-reaching, globally televised projection of Abu Dhabi. The country has been criticised by human rights groups alleging a repressive crackdown on dissent – long prison sentences for people found guilty in disputed trials of planning to overthrow the ruling regime – and for the historically low pay and poor conditions of migrant workers. In Manchester, they have been keen not to put a foot wrong: City are the only Premier League club committed to paying all staff a recognised living wage.

Across Manchester, the Glazer family bought United with £525m of borrowed money and have caused almost £700m to drain out of the club in interest, fees and other charges. Yet, because that has not pushed United into big losses in 2011-13, they face no sanction.

Uefa do approve of City's community investment, but, simply put, the club breached the rules, which were agreed in 2010 by the 200 top clubs in the European Club Association, and the European Professional Football Leagues, which includes the Premier League.

Eight of the nine clubs sanctioned, including PSG, have apparently settled, but City's ownership faced down Friday's deadline. They expect to win the Premier League on Sunday, and face Uefa again on Monday. Such is the state of the new Manchester City
 
Re: City & FFP (continued)

rossblue said:
According to The Guardian we have called UEFAs bluff and not responded by today's deadline...

<a class="postlink" href="http://www.theguardian.com/football/david-conn-inside-sport-blog/2014/may/10/manchester-city-face-down-uefa-financial-fair-play" onclick="window.open(this.href);return false;">http://www.theguardian.com/football/dav ... -fair-play</a>


Good read that.
 
Re: City & FFP (continued)

We appear leery of acknowledging FFP in any way at this point.

Looks like we won't sign off on anything without a concession. If UEFA really had us cornered, why are they so eager for us to agree? Why are they even allowing a delay if they are in an unassailable position of strength? They could just announce it without our input.

Looks like we are prepared to sit back and wait. UEFA seem far too apprehensive on this. They either want our consent or don't want a fight.
 
Re: City & FFP (continued)

wikipedia says this about FFP...

UEFA Financial Fair Play Regulations
From Wikipedia, the free encyclopedia
The UEFA Financial Fair Play Regulations, first agreed in principle in September 2009 by the Financial Control Panel of football’s governing body in Europe (Union of European Football Associations – UEFA), were brought in to prevent professional football clubs spending more than they earn in the pursuit of success and in doing so getting into financial problems which might threaten their long term survival.[1] the reality however is, it is a corrupt system designed solely to maintain the status quo within European football. Ensuring no new money can be invested by owners of clubs to develop and improve. Infact it is so corrupt a team from the EPL, whos owner has ploughed millions into the team AND the local community to redevelop a rundown area, was given a massive FINE for his generosity. At the same time a club in the French league with whom the architect of FFP has connections, via family, was fined a much smaller amount for a greater infringement. Introduced amid concern at the heavy spending of a number of professional clubs across Europe who were attempting to create a level playing field it was hoped that the regulations would, once again, eventually lead to the distortion of the playing field in favour of the established European teams by preventing clubs with very wealthy owners who make substantial cash gifts to their club, from competing against other clubs who are run on a more sustainable yet debt driven business model, and in so doing stop the developing clubs spending. The financial fair play (FFP) regulations provide for sanctions to be taken against clubs who do not spend within a set budgetary framework over several seasons. The sanctions however will be based on which club you are as opposed to the level of infringement.

The 2011–12 football season is the first during which the regulations apply;[2] The ultimate penalty is disqualification from European competitions.[3] Other possible penalties originally included fines, the withholding of prize money, and transfer bans.[4] As of early 2012, however, UEFA has had to shelve plans to ban player transfers following legal advice, and it remains to be seen if other threatened sanctions will be taken in practice. On announcing the new legislation, UEFA President Michel Platini might have said, Fifty per cent of clubs are losing money and this is an increasing trend. We needed to stop this downward spiral. They have spent more than they have earned in the past and haven't paid their debts. Although we dont have a problem with the biggest of the european clubs having debt or indeed being given payments from their home governements. We don't want to kill or hurt the clubs; on the contrary, we want to help them in the market. (the clubs being the ones I decide I want to have their noses in Uefa's trough). The teams who play in our tournaments have unanimously agreed to our principles, this is because if outside people come into the elite of Europe they realise they will lose money, but we will pretend living within your means is the basis of accounting but it hasn't been the basis of football for years now. The European elite club owners are asking for rules to eradicate the possibility they will be challenged for their places in the champions league because they can't implement them themselves - many of them have had it with sharing money with other clubs and the less money you put into clubs, the harder it is to sell at a profit.[1] Platini went on to say that the measures were backed by the majority of football club owners, and that an independent panel would be set up to judge whether clubs had broken the rules.[5]
 
Re: City & FFP (continued)

rossblue said:
According to The Guardian we have called UEFAs bluff and not responded by today's deadline...

<a class="postlink" href="http://www.theguardian.com/football/david-conn-inside-sport-blog/2014/may/10/manchester-city-face-down-uefa-financial-fair-play" onclick="window.open(this.href);return false;">http://www.theguardian.com/football/dav ... -fair-play</a>
If what's written in there is true, it seems UEFA want a war. I hope we give it them.
 
Re: City & FFP (continued)

Gone a bit quiet again this Fair play turd . That's the way I like it . Just keep speculating the shitty media .
 
Re: City & FFP (continued)

baildon blue said:
Gone a bit quiet again this Fair play turd . That's the way I like it . Just keep speculating the shitty media .

Ah yes, just the chance that the media know bugger all, well thats what a source said , so must be true.
 
Re: City & FFP (continued)

According to the Mirror, we've been building a case against this for past three years, it goes to show how the powers that be at our club view this FFP shite. They know that if we take this to EU courts that it contravenes business and trade laws. I wouldn't be surprised if we go mental in the transfer window just to stick two fingers up at the uefa
 

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