PL charge City for alleged breaches of financial rules

Tolmie scores said:
D

oes Seem strange why City just didnt follow suit at issued £500m of interest free shareholder loans like the rest. Although unethical it was in tge rules. If we did inflate sponsorship just to match the dodgy loan investments well that's fraud on a big scale = why do it? Modern football is sh*te at top level. Fancy having more time devoted to discussing shareholder loans, governence and finance regs than whose playing right wing on a Saturday! Miss those days
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There is a relatively simple answer to this. In Islam it is forbidden* to provide loans, even at interest free. You have to gift it. Islamic financing is a bit more complicated In what they can and can’t do compared to our capitalist system, I’m sure the yanks et-al knew this when concocting these rules.

In many ways Islamic financing rules are a far more equitable system than we have. Yet apparently they are the bad guys in all this with their alleged corruption!!!!

*There are ways they can structure transactions to circumvent this but generally it’s easier to not to do it.
 
metalblue said:
There is a relatively simple answer to this. In Islam it is forbidden* to provide loans, even at interest free. You have to gift it. Islamic financing is a bit more complicated In what they can and can’t do compared to our capitalist system, I’m sure the yanks et-al knew this when concocting these rules.

In many ways Islamic financing rules are a far more equitable system than we have. Yet apparently they are the bad guys in all this with their alleged corruption!!!!

*There are ways they can structure transactions to circumvent this but generally it’s easier to not to do it.
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Nail on the head.
 
halfcenturyup said:
Naah. Equity or loans makes no difference to PSR in principle because you can only spend what you earn as income whether you are funded by equity or loans.

That's why sponsorship is important. The more you earn, the more you can spend.

The APT thing about loans is that they must now have fmv interest charged against them. Presumably for PSR as well, although that hasn't been challenged yet, so clubs with loans (rather than equity) will have less to spend on players and the like.
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My understanding is that Dir Loans can fund working capital including wages (tbh there's a few clubs that would have gone under recently without that facility) so they are effectively treated as income.

I agree that this is an area where the APT change is going to have quite an impact.
 
ShedDweller said:
My understanding is that Dir Loans can fund working capital including wages (tbh there's a few clubs that would have gone under recently without that facility) so they are effectively treated as income.

I agree that this is an area where the APT change is going to have quite an impact.
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Loans are never treated as income, nor is equity. They are both simply ways to finance a company, making funds available for working capital or investments or anything.

But you can only spend on operating costs as much as you earn as income, however you fund the company, so that you don't make a loss (with some exceptions).
 
yes
metalblue said:
There is a relatively simple answer to this. In Islam it is forbidden* to provide loans, even at interest free. You have to gift it. Islamic financing is a bit more complicated In what they can and can’t do compared to our capitalist system, I’m sure the yanks et-al knew this when concocting these rules.

In many ways Islamic financing rules are a far more equitable system than we have. Yet apparently they are the bad guys in all this with their alleged corruption!!!!

*There are ways they can structure transactions to circumvent this but generally it’s easier to not to do it.
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i thought it was a usury (riba) issue - but surely that could have been presented to the EPL when they analysed the competitive model..i.e. where are clubs getting their funding from. Surely that would have been part of the due diligence!!! Also, if it was not possible to compete with other clubs legally - don't enter the market - it's crazy no other company would do that would they? I am sure if they said to prem, right we want to invest in the local area to the tune of £100m's and have a team that is funded at the same level as other clubs with wealthy shareholders - then can you look at your rules EPL? EPL= Answers ermm no...then the investors move on..surely that's the logical process. Why wasn't this done in all honesty - staggering.
 
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murky though, loans fund huge infrastructure - scouting - rehab clinics - training faclities etc. = advantage - only fair way is a central pot US system - Most capitalist society has a purely equitable sport business model...crazy. The orgs earn a fortune though as do the players - but you need a very small number of orgs to do that. Hence NFL has what 38 - 40 teams max - pop 380 m. We have about 120 - 125 full pro teams - pop in England and wales about £62m
 
Tolmie scores said:
murky though, loans fund huge infrastructure - scouting - rehab clinics - training faclities etc. = advantage - only fair way is a central pot US system - Most capitalist society has a purely equitable sport business model...crazy. The orgs earn a fortune though as do the players - but you need a very small number of orgs to do that. Hence NFL has what 38 - 40 teams max - pop 380 m. We have about 120 - 125 full pro teams - pop in England and wales about £62m
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I'd rather have muddy pitches and Dog shit on the concourse before going any more American mate ;-)
 
Manc in London said:
Scousers must be funny. After all, they always laugh at their own 'jokes'.

Many years ago, I sat in front of three inebriated scousers on a four-hour flight. Each one of them thought they were a comedian. Non-stop drivel for the whole flight. I had a headache after the flight as I spent so much time grinding my teeth. It was excruciating.
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EEEEE Lar....
 
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