FFP and why it's so bad for football supporters World wide.

[S04]

So, basically, because of Twatini's new regulations, no team will ever be able to do what we've done or similar ever again?

What a joke.

That´s not exactly true, any club could grow their infrastructure and commercial enterprises to the point of overtaking the established clubs. But it would be a slower process of course.
You guys have not seen half the commercial opportunities clubs in say Germany are using to add revenue.

Take away games for example where club owned travel agencies handle that business and pick up the fans with their own coaches outside club owned bars next to the stadium etc etc.

Growinf infrastructure is actually a very expensivce business and it's not available to most clubs. Even though the expense doesn't count in FFP calculations most clubs don't have the capital available in the first place and the banks won't lend them it because their turnover isn't big enough to pay it back. Your post actually misses the point when you talk about Germany. It's true that German clubs tend to have hight commercial revenues than English clubs - though only Bayern and Dortmund (just) have higher commercial income than City! - the commercial income at Bayern is actuall growing relative to other German clubs. And Germany is one of the least competitive leagues in Europe - Bayern have won it 27 times in the last 44 seasons! No club has come up with a way of rivalling the order which was established in the 1990s, often by changing the rules, other than by an injection of cash by an owner. It's true at all levels - Blackburn, Chelsea and City are the examples quoted, with the suggestion that somehow it isn't fair, but United bought their first PL titles with cash provided by injection from the owners and built up other revenue sources (many previously not allowed by the rules!), and Wigan did it to get to the PL. Investment by the owner is the necessary first step to "growing infrastructure". The underlying problem is, of course, that champions league revenues give club finances such a boost thatthose who were in place to benefit from them from the 90s onwards have a massive financial advantage over other clubs.

You still look at it from a football point of view instead of a financial process.

Let´s say that an owner builds an office tower next to the ground using borrowed money secured against the building itself and then transfer ownership of the building to his club.
Given that the building is heavily mortgaged we can assume that the net value is very low, but the offices paying rent will increase club revenue substantially and in time as the mortgage is paid of it will add a lot of profit which (and this is important) is regarded as football related income because of its location next to the stadium.

 

[GY.Blue]

its a pity ferguson wasnt against unfair spending in 2009 just before real madrid bunged him 80,000,000 for one player,still its different when its the other way round

 

[waspish]

Apparently UEFA confirm 23 clubs have had prize money from UEFA competition withheld pending investigation into FFP breaches

 

[Cobwebcat]

Apparently UEFA confirm 23 clubs have had prize money from UEFA competition withheld pending investigation into FFP breaches

Eh? Sanctions don't start for a couple of years so I don't get it. Can only assume you mean would have if the rules applied now.

 

[waspish]

Here's the 23 clubs it's punishment for none payments of taxes and fees for players! we have no worries

These cases involve the following 23 clubs:
FK Borac Banja Luka (BIH)
FK Sarajevo (BIH)
FK Željezničar (BIH)
PFC CSKA Sofia (BUL)
HNK Hajduk Split (CRO)
NK Osijek (CRO)
Club Atlético de Madrid (ESP)
Málaga CF (ESP)
Maccabi Netanya FC (ISR)
FK Shkendija 79 (MKD)
Floriana FC (MLT)
FK Budućnost Podgorica (MNE)
FK Rudar Pjevlja (MNE)
Ruch Chorzów (POL)
Sporting Clube de Portugal (POR)
FC Dinamo Bucureşti (ROU)
FC Rapid Bucureşti (ROU)
FC Vaslui (ROU)
FC Rubin Kazan (RUS)
FK Partizan (SRB)
FK Vojvodina (SRB)
Eskişehirspor (TUR)
Fenerbahçe SK (TUR)

 

[Hamann Pineapple]

will add a lot of profit which (and this is important) is regarded as football related income because of its location next to the stadium.

Why are Real Madrid considering building a theme park in Abu Dhabi then ?

 

[clp1000]

Just as in the real economy the free market does not exist. If it did, gas and electricity prices would be lower due to competition. In fact the banks on failing did not go to the wall, they were bailed out by the tax payer. This is in effect a monopoly of political and economic power. The big players make the rules.

So it is in football. Basically it is protectionism. While the City response to this cartel has been criticized it is the only way to break in.

However in the long run something completely different is required that allows the likes of Derby, Forest or these days Swansea to win the league.

Quite how that can come about in our super capitalist world is a bit difficult to envisage.

Very well put !

 

[S04]

will add a lot of profit which (and this is important) is regarded as football related income because of its location next to the stadium.

Why are Real Madrid considering building a theme park in Abu Dhabi then ?

They are not..I assume you mean Ras Al-Khaimah?

 

[dom]

Just as in the real economy the free market does not exist. If it did, gas and electricity prices would be lower due to competition. In fact the banks on failing did not go to the wall, they were bailed out by the tax payer. This is in effect a monopoly of political and economic power. The big players make the rules.

So it is in football. Basically it is protectionism. While the City response to this cartel has been criticized it is the only way to break in.

However in the long run something completely different is required that allows the likes of Derby, Forest or these days Swansea to win the league.

Quite how that can come about in our super capitalist world is a bit difficult to envisage.

Excellent post,

Anyone who doubts the more fundemental economic pointshere should read
'The Return of the Master' by Robert Sidelsky, professor of Economics at Warwick University,at last a cogent critique of the fundementalflaws in New Classical (Monetarist) economincs and a clarion call for an appreciation of what Keynes was dead right about

 

[Tueart1976]

Platini seems to have been mouthing off again. This brief article was in the Sun:

Platini warns Man City and Chelsea to play fair

UEFA president Michel Platini has warned Manchester City and Chelsea — obey Financial Fair Play rules or else. City and Chelsea are clubs who posted huge trading losses after spending big on new players.

I can't find any other news outlet that has picked up on the same story. It could be there's no news, and so the Sun needs to fill column inches by doing a bit of sh*t stirring.