Jonjo said:
Directly from the article, lol, and people think I made that up haha
The only club that looks vulnerable is Manchester City, whose loss for FFP is still a frightening £142 million.
I've been alerted to your presence and asked to educate you.
No one is arguing with the Swissramble blog but there's a few things that you clearly don't understand about FFP.
1) Last year's results don't count towards FFP, which is why the club deliberately made the loss as big as it could by getting some expenses out of the way that might have hampered us in the following years, which do count. So we got rid of about £30m in those accounts.
2) The first set of results that count are the next ones for the year to May 2012 but even then, they have to be added to next year's results before you can calculate your FFP result. So you can't look at just one year and say we'll fail.
3) The results for the previous financial year which should be out shortly will be considerably better than those as the 2011 results didn't include the new Etihad deal or the income from the CL. I'd expect us to see an income figure 50% better than the £153m we reported last year. We'll still show a fair sized loss but the trend is getting better every year. The results for this current financial year (to May 2013) will be even better still and could show us with either a small loss or breaking even.
4) As it says in the article, he believes we can write off £21m of allowable expenditure each year for FFP. It may well be more than that as we're spending a lot of money on the new training campus but we'll stick with that figure.
5) If we make an £85m loss this year and say a £25m loss next year, we'll have an aggregate loss for the first FFP assessment of £110m. We can knock £42m off that as per (3) giving an FFP-adjusted loss of £68m (or €85m at current exchange rates).
6) So that's a fail at first glance as the allowable limit is €50m but there's a rule that allows you to offset wages paid in the year to 2012 to players who signed their current contract before June 2010 and that will be about £45m (or €55m).
7) Bringing that into the equation gives us a final FFP-adjusted loss of €30m, which is well inside the maximum allowable loss of €50m.
So whatever happened in the year to 2011 is competely irrelevant.
