Financial Fair Play

[SamTheGuru]

The three things that jump out to me in the "rules" are- "Break evens over 3 years", "by 2014-2015", and " spend as much on the stadium as you want". Does that mean players brought in prior to 2011 can;t be taken into account,so we are now looking at Dzecko onwards. If so, to me ,we are on track to conform. And we have the income from the things being built as part of the stadium. Or is that too simple a statement,I;m no buisnessman.

In simple terms, Dzeko's transfer fee is spread over the length of his contract - so £30m transsfer fee (for eg) over 4 years shows as minus £7.5m a year.

I am assuming his wages are on top of that? So for arguments sake say he is on 130k a week, that is an additional -£6.76m per year? (Not taking into account bonuses, etc.). So essentially Dzeko is costing about £14m a year on the books?

 

[johnmc]

In simple terms, Dzeko's transfer fee is spread over the length of his contract - so £30m transsfer fee (for eg) over 4 years shows as minus £7.5m a year.

I am assuming his wages are on top of that? So for arguments sake say he is on 130k a week, that is an additional -£6.76m per year? (Not taking into account bonuses, etc.). So essentially Dzeko is costing about £14m a year on the books?

As I understand it yes. So its not a case of spending heavily now and then reigning it in when the rules come into play as they still have an effect.

What I dont understand is why we can't just ask these players to sign a new contract on the same basis that they are on now, surely this would mean the transfer fee is null and void.

 

[Skashion]

The FFPR look at accounting procedures and changes to accounting procedures that are done in order to escape the rules won't be allowed. Our best hope is to move towards genuine compliance as quickly as possible. The additional benefit is that it will secure the long-term future of our club.

 

[2sheikhs]

Where the fuck does this ruling leave a club like AS Monaco?

 

[SamTheGuru]

The FFPR look at accounting procedures and changes to accounting procedures that are done in order to escape the rules won't be allowed. Our best hope is to move towards genuine compliance as quickly as possible. The additional benefit is that it will secure the long-term future of our club.

So a £30 million transfer fee over 4 years = £7.5m a year?

What happens when that 4 year period is over and the player has signed a new contract? That means that -£7.5m a year is no longer on the books?

 

[johnmc]

The FFPR look at accounting procedures and changes to accounting procedures that are done in order to escape the rules won't be allowed. Our best hope is to move towards genuine compliance as quickly as possible. The additional benefit is that it will secure the long-term future of our club.

Well could it be that these situations that we have been seeing with Tevez and Rooney could be repricated.

They get a new contract (not that tevez did) and we get the transfer fee off the books.

And how would it really be policed - lets say we gave Silva a 5% rise for giving great performances - who would argue that?

 

[i8therags]

The three things that jump out to me in the "rules" are- "Break evens over 3 years", "by 2014-2015", and " spend as much on the stadium as you want". Does that mean players brought in prior to 2011 can;t be taken into account,so we are now looking at Dzecko onwards. If so, to me ,we are on track to conform. And we have the income from the things being built as part of the stadium. Or is that too simple a statement,I;m no buisnessman.

In simple terms, Dzeko's transfer fee is spread over the length of his contract - so £30m transsfer fee (for eg) over 4 years shows as minus £7.5m a year.

I see.Does that mean all the players contracts that are now on going,even those starting prior to 2011 are taken into account.So as an example,say we spent 200 mil in 2010 on players on 4 year contracts,thats 50mil as a minus for the next 31/2 years,which means by 2014 those players first outlay can;t be taken into account.The best of these players will be on new contracts so I take it only the wage can be counted as a minus. It will be interesting now to see how long the contracts were for,for those signing last summer.

 

[SamTheGuru]

The FFPR look at accounting procedures and changes to accounting procedures that are done in order to escape the rules won't be allowed. Our best hope is to move towards genuine compliance as quickly as possible. The additional benefit is that it will secure the long-term future of our club.

Well could it be that these situations that we have been seeing with Tevez and Rooney could be repricated.

They get a new contract (not that tevez did) and we get the transfer fee off the books.

And how would it really be policed - lets say we gave Silva a 5% rise for giving great performances - who would argue that?

But the transfer fee wouldn't be off the books would it? That was the idea behind the whole Robinho transfer. They paid out the rest of the "Amortisation" charges for the remaining 3 years to balance the books? At least that is what I am getting. Just because a player signs a new contract does not mean that the transfee can be wrote off.

 

[johnmc]

But the transfer fee wouldn't be off the books would it? That was the idea behind the whole Robinho transfer. They paid out the rest of the "Amortisation" charges for the remaining 3 years to balance the books? At least that is what I am getting. Just because a player signs a new contract does not mean that the transfee can be wrote off.

Well this is what i dont get as we do not let contracts run down to the last 12 months for players we want.

For example, pabzab will no longer have an amortisation amount. But that originally would have been spread out over his contract. Lets say for ease of calc that pabzab cost £10m over 4 years contract.

On the books minus £2.5m over the four years. However we give him a new 4 years contract after 3 years of his old deal. So on the books there is still £2.5m for him. Does that now get spread over his new 3 years - so he is now only minus £625k?

 

[Skashion]

The FFPR look at accounting procedures and changes to accounting procedures that are done in order to escape the rules won't be allowed. Our best hope is to move towards genuine compliance as quickly as possible. The additional benefit is that it will secure the long-term future of our club.

So a £30 million transfer fee over 4 years = £7.5m a year?

What happens when that 4 year period is over and the player has signed a new contract? That means that -£7.5m a year is no longer on the books?

Yes. That's just one reason why I like Mancini's buying young policy. Hopefully we can get a core squad together and keep it together for a decade like the rags have done, two decades in Giggs' case - he's been phenomenal value.