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

[squirtyflower]

Re: City & FFP (continued)

Just a thought... Isn't the salary freeze playing right into the Bosman lawyers hand?

Previously he had to argue that reduction in players' wages was a consequence of FFP, but now he has actual hard evidence that it is. Wage caps have to be carefully agreed - if they are to be allowed at all - with the involvement and consent of the employees, i.e. the players, but no players have been consulted. Very very bad under EU law, I think.

Actually there are now three things to help DuPont, and all made very public
1. Reduction in squad size means that three players who would have earned CL bonuses will now be unable to have any opportunity to collect them, therefore depressing their earning potential
2. Reduction in transfer fees available means we 'may' not be able to buy a player we had lined up, who now has to accept a lower contract from another club
3. The reduction in players' wages as you have mentioned

 

[Ducado]

Re: City & FFP (continued)

Congratulations to UEFA.

They succeeded in making their principles stick. Nobody seriously opposed them or mounted a legal test.

We now have to curb transfer expenditure to £49m net and keep basic salaries under reasonable control. The club claims we would have done this anyway to achieve our business plan.

We must look to bring on a few more "home-grown" players rather than import ready-made stars. That was the aim of the academy all along.

Is the world a much worse place this morning? It will be more difficult for a new City or PSG but we got to the top table in time.

Pragmatism rules OK.

There is a legal challenge scheduled for next year

 

[BlueRockape]

Re: City & FFP (continued)

Morning Blues. Main points.
We have been fined but get most of it back
We have been capped on our transfers - but we can still spend shit loads
We have a salary freeze - but it is based on our highest ever figure which has reduced considerably
We have a limit on our squad size - but can still use as many under 21s as we like.

IF the HG rule is still 8 players we will face at least 3 big name players excluded (this is our only practical problem) if HG rule is proportional we should be OK.

Concerning this idea of the 'salary freeze' - and apologies if this has been mentioned before - but I read recently that the present contract of David Silva substantially reduced his wage from his first one, signed during our 'accelerated development' phase. Apparently all players signed last summer earn considerably less than £100k a week. If true, the ongoing long term effects of this will fit easily into any further FFP probing.

Note also what City said in our statement - there is no effect of these restrictions on performance bonuses, so expect even more of our players wages to be structured around performance bonuses rather than basic salary - will not affect the ffp calculation but will affect the "salary freeze" calculation

So any new players or new contracts we can just offer a bigger bonus rather than wage ?

 

[S04]

Re: City & FFP (continued)

It´s only about half of our IP-sales that was within the group anyway.. or around £22m as I recall it

 

[Tim of the Oak]

Re: City & FFP (continued)

We have earned 40 million pounds more from the TV revenue than last year. That alone should more than cover it.

But if we dont have incomes from Ip deals like last time that can be 40m less income and that could cancel out the tv deal improvement, no?

I think you'll find that City's Financial end of year accounts are slightly more complicated than that.

True but it would be helpful to see an estimate of how Bluemooners think we have broken even this year . I am taking about in our accounts rather than FFP.

I assume increased TV revenue has offset the £50m one image and scouting rights value from last year.

We got out of the CL group for the first time that was reported to be worth £15m or so extra.

The pay off to Mancini and his backroom staff would have been a one off and we haven't been paying towards as many people being on loan e.g. Santa Cruz.

The squad will have continued to be the best paid in the league once bonuses for trophies won are dished out.

Ticket prices / match day revenue went up 10 percent so about £5m and the Nike shirt deal is worth millions more now.

Also, Glicky has negotiated several smaller sponsorship deals.

Can Anyone who has a better idea on the figures out together an estimate please?

 

[andyhinch]

Re: City & FFP (continued)

Congratulations to UEFA.

They succeeded in making their principles stick. Nobody seriously opposed them or mounted a legal test.

We now have to curb transfer expenditure to £49m net and keep basic salaries under reasonable control. The club claims we would have done this anyway to achieve our business plan.

We must look to bring on a few more "home-grown" players rather than import ready-made stars. That was the aim of the academy all along.

Is the world a much worse place this morning? It will be more difficult for a new City or PSG but we got to the top table in time.

Pragmatism rules OK.

There is a legal challenge scheduled for next year

I can't see why people aren't getting this, if we raised a legall challenge, it would come in after the one already set in place.

 

[Uber Blues]

Re: City & FFP (continued)

We can control our salary outgoings no problem.
Bonus payments are outside the FFP rules.
Nothing to stop low/medium salary for players topped up with performance related bonus at year end.

We're in the camp and sat around the fire singing ging gang goolie.

The real losers are on the other side of the stream and they know who they are. If top flight clubs get bough out by wealthy middle eastern owners they through their own stupidity will not qualify to eat beans around the fire.
I'll site Everton as one example.

I can also look at that lot over in Stretford, they have the biggest season potentially coming up in their history. If the Dutch man fails having spent big, and their revenue streams even start to flicker they could be in huge difficulty.
The bond issue payout is around the corner at united, they're in 350 ( allegedly) debt, they need to spend upwards of 150 million to fix the squad, Moyes spent circa 80 million, plus failure to get CL, plus his pay off.
They're paying catch up, we have the
longest serving manager over them, and a fantastic settled squad.
I think they could fall away if this next trick doesn't work for them.
From our point of view we have the biggest ace.

We have the best owners in the world, and the best fans in the world.

Watch us grow.... And watch us go. We're on the march and we ain't stopping until we get where we want to be......the best team in the land and all the world!!!

Rant over from my half slumber this morning....

 

[Tim of the Oak]

Re: City & FFP (continued)

We have earned 40 million pounds more from the TV revenue than last year. That alone should more than cover it.

But if we dont have incomes from Ip deals like last time that can be 40m less income and that could cancel out the tv deal improvement, no?

Last year we had an additional £30m of expenses due to the payoff to Mancini and his staff and the £22.5m from sale of IP to group companies, plus £24.5m to a third party. So without those we'd have had a £67m loss. The new TV deal brings in about £35m and we'll have higher ticket and commercial income plus player amortisation will be about £10m lower. So we'll make the €20m deficit easily, particularly as that's after we add allowable expenses (£20m) back.

Good to read PB.

I have found all the expertise on FFP And accountancy very helpful on here.

IMHO, it was the failure to get out of Group stages in the previous two CLs and the calamitous 2012 Summer transfer window that pushed us / the Club into including IP income that UEFA were unlikely to accept (as they thought we were taking liberties).

 

[Centurions]

Re: City & FFP (continued)

Just woke up to this.

No surprise. Very brief summary from what I can see from the BBC site and which seems a decent summary, relying upon the club's own statement.

The club were always going to do a deal [as I have said for several days now]. It is not in the Arab nature to engage in litigation and, in this instance, it makes no business sense. Better to have a cut off now and move on. Winning the PL was probably the cherry on the cake and will, overall, cover the net euro 17m fine.

it seems highly likely that MCFC will break even for next season.

Of this Euro 49 m fine, 32m is suspended. Presumably, not payable if we play along from now on [which we will].

The club say they were only going to use 21 players in the LC anyway.

They also say that wages were not going to increase in any event.

Finally, MCFC say that the net 49m on transfers was all they were planning to spend this summer as a maximum!

So, I think that AUDG will be quietly happy about all this and, as others have said, FFP will ultimately benefit MCFC more than any other club. You will look back and see how FFP is now dead in the water from our perspective.

Just think how Platini will be crying today, He tried his best for the cartel but it's all over now.

Therefore, for me, excellent news! Now can we move back to football matters. Cheers. CTID

There was one thing missing from the BBC version which I think was missed(or deliberately ignored) :-

From the outset, the Club has engaged with UEFA in its introduction of the Financial Fair Play Regulations in good faith and without prejudice and in a transparent and collaborative manner. The Club’s position is that it is beholden upon UEFA and the European football establishment to ensure the same.

Which I read as "we played by your rules but you moved the goalposts without giving us any warning".

it seems highly likely that MCFC will break even for next season.

We will break even for this financial year which ends in 14 days time. Next financial year we expect to be in profit.

The club say they were only going to use 21 players in the LC anyway

Actually they said we only used 21 out of a 23 man registered squad last season.

They also say that wages were not going to increase in any event

They've been noticeably lowering them anyway with players such as Lescott and Barry leaving this summer and the new Barca style lower wages but high performance bonus linked wages.

Finally, MCFC say that the net 49m on transfers was all they were planning to spend this summer as a maximum!

Along with any incoming fees for people leaving(Richards, Pantilimon, Rodwell? a small amount but may be significant) that should cover Mangala, Fernando, Sagna and Carbello.

As you say it looks like a heavy punishment but aside from the 20 million euro 'fine' spread over the next 12 months and perhaps the squad limit the rest we were pretty much already aiming for anyway.

For those saying we should have fought this and 'we've bent over for UEFA' I'll bet Whinger won't agree because he'll see that it was actually the other way around. He will not be happy. Which makes me as a Blue VERY happy.

 

[spacecadet]

Re: City & FFP (continued)

Wonder if they will put us in pot one as a sweetener for being good boys? They need someone to replace the vermin as seeds and their group of one team of no-hopers and two pub teams from Romania and Bulgaria, The Dog and Duck and the Golden Fleece.
They seem to be able to rig anything these corrupt bastards.