This may be news to some and not others but either way i thought it would be interesting to share.
I had a talk at Uni today from a lawyer who specialises in football law, his name is Daniel Geey if any of you have heard about him before this is an example he gave to us today:
He shared an example which describes the fairness of FFP through TPO's.
The example that he gave was; Arsenal and Porto bid for a player, the fee is £10m to acquire the players services, Porto have bid £10m made up of 50% from a TPO, this means Porto have agreed to allow a TPO a certain percentage of the players economic rights for a fee in this case £5m, where as Arsenal have to pay the full £10m due to the restrictions on British clubs having to own a player outright.
With me so far?
For the purpose of this example lets say both clubs sign the player.
In terms of FFP this means that Porto only have to actually declare £5m pounds to FIFA for the financial accounts where as Arsenal have to declare the full £10m therefore putting them financially at a disadvantage for their accounts to FIFA.
So in conclusion due to certain governance restrictions in football the FFP isn't actually fair, this is only 1 example that was talked about and thought may be have some interest to some.
I had a talk at Uni today from a lawyer who specialises in football law, his name is Daniel Geey if any of you have heard about him before this is an example he gave to us today:
He shared an example which describes the fairness of FFP through TPO's.
The example that he gave was; Arsenal and Porto bid for a player, the fee is £10m to acquire the players services, Porto have bid £10m made up of 50% from a TPO, this means Porto have agreed to allow a TPO a certain percentage of the players economic rights for a fee in this case £5m, where as Arsenal have to pay the full £10m due to the restrictions on British clubs having to own a player outright.
With me so far?
For the purpose of this example lets say both clubs sign the player.
In terms of FFP this means that Porto only have to actually declare £5m pounds to FIFA for the financial accounts where as Arsenal have to declare the full £10m therefore putting them financially at a disadvantage for their accounts to FIFA.
So in conclusion due to certain governance restrictions in football the FFP isn't actually fair, this is only 1 example that was talked about and thought may be have some interest to some.