ffp..a good way round it

Longsight-memories

Well-Known Member
Joined
3 Nov 2010
Messages
1,133
The transfer that could give Barcelona the funds to make a successful bid for Cesc Fábregas could also help Roma limit their exposure to Uefa's financial fair play rules. Last Friday Bojan Krkic moved from the European champions to Roma on a two-year contract. It cost €12m (£10.6m) but Barcelona will have the right to buy him back for €13m when the contract expires. If they do not take up that option, the Italians will have to pay the full €40m transfer fee to take him on permanently.

For the purposes of the FFP system, Krkic will probably be registered as being on loan. Thus Barcelona can spend the fee as revenue. And as a loan, Roma do not have to amortise the fee over the course of the contract and can now avoid what would have been €8m a year in accounting charges over the next five years.
 
I thought about something along those lines a while back.

I thought about signing players on a two year contract with an option to renew to contract for a further three years at the end exercisable only by the club. We could then write down the transfer fee over 24 months but still retain the player.

This would,at least, help towards the 'moving in the right direction' proviso within FFP.
 
The silence from Bavaria, North London and Merseyside over this blatant exploitation of an FFP loophole is deafening.
 
strongbowholic said:
The silence from Bavaria, North London and Merseyside over this blatant exploitation of an FFP loophole is deafening.
brilliant strongbow?
 
Longsight-memories said:
For the purposes of the FFP system, Krkic will probably be registered as being on loan. Thus Barcelona can spend the fee as revenue. And as a loan, Roma do not have to amortise the fee over the course of the contract and can now avoid what would have been €8m a year in accounting charges over the next five years.

See, that would be brilliant, but unfortunately you got it wrong. It's not a transfer, it is a loan, and it does force Roma to pay amortisation.
 
Longsight-memories said:
The transfer that could give Barcelona the funds to make a successful bid for Cesc Fábregas could also help Roma limit their exposure to Uefa's financial fair play rules. Last Friday Bojan Krkic moved from the European champions to Roma on a two-year contract. It cost €12m (£10.6m) but Barcelona will have the right to buy him back for €13m when the contract expires. If they do not take up that option, the Italians will have to pay the full €40m transfer fee to take him on permanently.

For the purposes of the FFP system, Krkic will probably be registered as being on loan. Thus Barcelona can spend the fee as revenue. And as a loan, Roma do not have to amortise the fee over the course of the contract and can now avoid what would have been €8m a year in accounting charges over the next five years.

€40M for Bojan, someone is having a laugh.
 

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top