Serious question relating to us and FFP(update P17)

[poyntontom]

Eventually the fans will be priced out... other clubs fans see this as a "Stop City! We've won! Woohoo!" situation.


They'll look like right cocks when they realise that to support the new regulations, their ticket prices have shot up so high they can't afford to go anymore.

good point, i feel this will happen.

 

[City Raider]

The Premier League clubs on Thursday agreed in principle to a system of enhanced financial regulations, which are designed to further improve the sustainability of clubs.

Here is more information to the agreed regulations:

Long-Term Sustainability Regulation

From the 2013/14 season Premier League clubs cannot make a loss in excess of £105m aggregated across seasons 2013/14, 2014/15 and 2015/16.

Any club that makes a loss up to that limit will be subject to a tighter regulatory regime that includes:
- Secure owner funding for three years ahead
- Increased future financial information over the next three seasons.

Short-Term Cost Control Measure

Premier League clubs are restricted in terms the amount of increased PL Central Funds that can be used to increase current player wage costs to the tune of:
2013/14: £4m
2014/14: £8m
2015/16: £12m

The Short Term Cost Control measure applies only to clubs with a player wage bill in excess of £52m in 2013/14, £56m in 2014/15 and £60m in 2015/16.

So if this is right the limit on wages only applies if your spending PL central funds - basically they want to limit amount of the TV deal that can be spent on salaries.

We can spend as much as we want on salaries as long as it comes from other revenue streams and we don't breech losses of over £105m over 3 years (even then the punishment only seems to be to secure owner funding over 3 years which won't be a problem.

This would appear to be a lot better than we'd hoped for or have I read it all wrong?

 

[MCC]

Sheikh Mansour has just tweeted... Fun day at the office. All over it. #mcfc

 

[poyntontom]

Eventually the fans will be priced out... other clubs fans see this as a "Stop City! We've won! Woohoo!" situation.


They'll look like right cocks when they realise that to support the new regulations, their ticket prices have shot up so high they can't afford to go anymore.

good point, i feel this will happen.

 

[LoveCity]

I hope karma hits one of the clubs who voted for it when an Arab prince makes a bid for their club next month and is unable to transform them thanks to the rules they voted for.

 

[ancoats]

i got a quetion about this FFP

how would utd and fergie of 1986 cope with it man they spent a shit load of money to take on liverpool and win the league

its sound like sky and utd have took there ball home coz little old city won the league and have more money than them both put togther

what about the saying Keeping up with the Joneses

 

[MCC]

I hope karma hits one of the clubs who voted for it when an Arab prince makes a bid for their club next month and is unable to transform them thanks to the rules they voted for.

Thing is though no one fucks with Abu Dhabi. We have the main boys. Everyone else out there is a piss in the ocean.

 

[LoveCity]

If Chelsea or QPR had not voted in favour these rules wouldn't have passed.

Against: Fulham, West Brom, Villa, Man City, Swansea, Southampton
Abstained: Reading
For: The Rest

 

[Prestwich_Blue]

Confuses me why the PL would bring in such rules. Surely a more competitive league is good for them and us winning the league like we did secured them a bigger TV deal.

I don't know why people are so puzzled about this. There are two different motivations at work. The big clubs want to stay big so it's in their interest to restrict allowable losses and wage bills so that teams like us and Chelsea can't pour in unlimited amounts of money over a short or sustained period. We know that's the rags, Liverpool, Spurs, Arsenal & possibly Chelsea as well.

The motivation of the other teams is that they will be getting a big increase in media income and want to hang onto it. So they'll get an extra £30m plus next season and will only need ot pay out £4m in extra wages. I suspect their owners don't care that they won't be taken over by some billionaire, as the chances of that are small. But the chance of making a profit or paying down debt is attractive to them.

If you were Kenwright, would you want to be able to pocket an extra £25m to put in the bank to ease your perilous financial plight or would you chuck that away for the million-to-one chance another sheikh Mansour might come knocking on your door?

 

[Flying in a Blue Dream]

Any club that makes a loss up to that limit will be subject to a tighter regulatory regime that includes:
- Secure owner funding for three years ahead
- Increased future financial information over the next three seasons.

Does that mean the Sheik can put money in escrow or whatever and nobody can say anything?