The end of financial 'fair' play?

[SWP's back]

UEFA will take any opportunity to enhance their rep with an exclusion of City.

The new Prem TV deal will just inflame the situation and create further scrutiny, perhaps now towards out Etihad deal.

Platini will be seething at English clubs getting legitimate funds to combat their measures, so we simply have to show willing, lip service.

The worst thing our club ever did was bid £108m for Kaka.

It showed a frightening glimpse to UEFA and the rest of Europe what our owners are capable of.

Cant scrutinise Etihad deal Tolm

 

[The Future's Blue]

Can someone correct me perhaps as again I am no expert on FFP-Prestwich blue put me straight on how a signing is worked out for the accounting purposes so thanks for that however if I remember rightly as part of FFP isn't the owner allowed to put in around circa 30 million per annum into the club which can be counted towards revenue. Apologies again if I am incorrect but I am sure I read this somewhere.

With players, you charge the initial fee over the life of the initial contract. So if we sign a player for £25m on a 5 year contract, we "amortise" £5m a year as an expense. The value of the player in the accounts then reduces by that amount each year. After 3 years that player would be "worth" £10m as we'd have charged 3 lots amortisation of £5m. If we sell him, then the difference between the sale proceeds and his book value is the profit or loss on that sale. However if he signs a new 5 year contract at that point then we charge the remaining £10m over that 5 years, which works out at £2m a year, etc.

In FFP you are allowed to make a loss of €5m but any losses above that, up to the maximum permitted loss in any monitoring period, has to be covered by the owner via putting the cash in to cover up to €40m of the €45m aggregate loss permitted in the first few years.

Seeing as you are the oracle on here PB, what is the score with the actual worth of a player? What I mean is if someone like Aguero scores 30-40 goals a season in the next few years and Madrid come in for him with a 80 mil bid. His value is actually then 80 mil, not 7.6 that is left to amortisation.

Can't the club claim current value of an asset and offset that against the books, afterall, assets are always accounted for just as if I bought gold 10 years ago at a certain price ad now it's worth 10 times as much?

 

[MCC]

What we all know anyway.

But how refreshing to hear it coming from the Chief Executive of Everton.

bit by bit Platini's plan will crumble.

Businessdesk North West.

Everton chief questions UEFA Financial Fair Play crackdown

EVERTON FC chief executive Robert Elstone has questioned UEFA's Financial Fair Play rules, arguing they will make it harder for other clubs to challenge the existing elite.

Mr Elstone, who continues to search for new investment for Everton, said the near £1bn spending spree by Abu Dhabi's Sheikh Mansour - which took Manchester City from mid-table to Premier League champions in four years - has been "good for football", despite being attacked by many in the game.

He told a Procurement in Sport forum in Manchester organised by Optimum Procurement that Manchester City's emergence had helped the Premier League secure a 70% increase in its broadcast revenues from BSkyB and BT.

"I think Manchester City's emergence has been good for football in terms of the talent and the players thay have brought into the league. I think it's one of the reasons the new domestic TV deal with Sky and BT is 70% higher than the previous one.

"I think clubs should be allowed to run their business as they see fit - it's been the way it has been done for 130 or so years and now in one fell swoop you can't.

"It basically now ingrains the positions of the top clubs and means no one else will be able to challenge that order."

Mr Elstone told business leaders at the event at Lancashire Cricket Club that the new television deal would be worth around £19m per year more to Everton - on domestic right alone.

"I hope we see similar growth in international too - the Premier League is a phenomenal success and one of this country's biggest exports.

"On any one Saturday it generates £60m and has grown 1,355% since the formation of the league 20 years ago."

He also called for talks between his club and city rivals Liverpool over a new stadium - which both clubs need if they are to grow commercial revenues.

"We are open to talks (with Liverpool) I have said it before and that position remains."

In terms of funding a new stadium, he called for Liverpool City Council to make it a priority, but conceded funding will be tough given the financial climate in both the public and private sector.

"We will need some support in terms of finances from the public sector or a third party, some kind of leg-up."

Finally another club coming out and saying that the whole thing is a disgrace. We were all against the top 4 getting so much money for a number of years and widening the gap, we get some money and suddenly they change the rules to suit the established clubs. Under the current rules no other clubs fans can live the dream like us which is a shame.

 

[Prestwich_Blue]

Can someone correct me perhaps as again I am no expert on FFP-Prestwich blue put me straight on how a signing is worked out for the accounting purposes so thanks for that however if I remember rightly as part of FFP isn't the owner allowed to put in around circa 30 million per annum into the club which can be counted towards revenue. Apologies again if I am incorrect but I am sure I read this somewhere.

With players, you charge the initial fee over the life of the initial contract. So if we sign a player for £25m on a 5 year contract, we "amortise" £5m a year as an expense. The value of the player in the accounts then reduces by that amount each year. After 3 years that player would be "worth" £10m as we'd have charged 3 lots amortisation of £5m. If we sell him, then the difference between the sale proceeds and his book value is the profit or loss on that sale. However if he signs a new 5 year contract at that point then we charge the remaining £10m over that 5 years, which works out at £2m a year, etc.

In FFP you are allowed to make a loss of €5m but any losses above that, up to the maximum permitted loss in any monitoring period, has to be covered by the owner via putting the cash in to cover up to €40m of the €45m aggregate loss permitted in the first few years.

Seeing as you are the oracle on here PB, what is the score with the actual worth of a player? What I mean is if someone like Aguero scores 30-40 goals a season in the next few years and Madrid come in for him with a 80 mil bid. His value is actually then 80 mil, not 7.6 that is left to amortisation.

Can't the club claim current value of an asset and offset that against the books, afterall, assets are always accounted for just as if I bought gold 10 years ago at a certain price ad now it's worth 10 times as much?

No they can't reflect what they believe to be the "value" of a player in the accounts, unless it's to write off book value, as they did last year. The reason is that footballers are classed as "intangible assets". In fact, the asset is actually the contract rather than the player himself.

 

[Mark - TheBlue]

Everton chief questions UEFA Financial Fair Play crackdown

EVERTON FC chief executive Robert Elstone has questioned UEFA's Financial Fair Play rules, arguing they will make it harder for other clubs to challenge the existing elite.

Mr Elstone, who continues to search for new investment for Everton, said the near £1bn spending spree by Abu Dhabi's Sheikh Mansour - which took Manchester City from mid-table to Premier League champions in four years - has been "good for football", despite being attacked by many in the game.

He told a Procurement in Sport forum in Manchester organised by Optimum Procurement that Manchester City's emergence had helped the Premier League secure a 70% increase in its broadcast revenues from BSkyB and BT.

"I think Manchester City's emergence has been good for football in terms of the talent and the players thay have brought into the league. I think it's one of the reasons the new domestic TV deal with Sky and BT is 70% higher than the previous one.

"I think clubs should be allowed to run their business as they see fit - it's been the way it has been done for 130 or so years and now in one fell swoop you can't.

"It basically now ingrains the positions of the top clubs and means no one else will be able to challenge that order."

Mr Elstone told business leaders at the event at Lancashire Cricket Club that the new television deal would be worth around £19m per year more to Everton - on domestic right alone.

"I hope we see similar growth in international too - the Premier League is a phenomenal success and one of this country's biggest exports.

"On any one Saturday it generates £60m and has grown 1,355% since the formation of the league 20 years ago."

He also called for talks between his club and city rivals Liverpool over a new stadium - which both clubs need if they are to grow commercial revenues.

"We are open to talks (with Liverpool) I have said it before and that position remains."

In terms of funding a new stadium, he called for Liverpool City Council to make it a priority, but conceded funding will be tough given the financial climate in both the public and private sector.

"We will need some support in terms of finances from the public sector or a third party, some kind of leg-up."

Aren't most of the mid table premier league fans begging this to come in?! haha Evertons chief Exec saying we are good for football. What do you Everton fans think of that?

 

[The Future's Blue]

With players, you charge the initial fee over the life of the initial contract. So if we sign a player for £25m on a 5 year contract, we "amortise" £5m a year as an expense. The value of the player in the accounts then reduces by that amount each year. After 3 years that player would be "worth" £10m as we'd have charged 3 lots amortisation of £5m. If we sell him, then the difference between the sale proceeds and his book value is the profit or loss on that sale. However if he signs a new 5 year contract at that point then we charge the remaining £10m over that 5 years, which works out at £2m a year, etc.

In FFP you are allowed to make a loss of €5m but any losses above that, up to the maximum permitted loss in any monitoring period, has to be covered by the owner via putting the cash in to cover up to €40m of the €45m aggregate loss permitted in the first few years.

Seeing as you are the oracle on here PB, what is the score with the actual worth of a player? What I mean is if someone like Aguero scores 30-40 goals a season in the next few years and Madrid come in for him with a 80 mil bid. His value is actually then 80 mil, not 7.6 that is left to amortisation.

Can't the club claim current value of an asset and offset that against the books, afterall, assets are always accounted for just as if I bought gold 10 years ago at a certain price ad now it's worth 10 times as much?

No they can't reflect what they believe to be the "value" of a player in the accounts, unless it's to write off book value, as they did last year. The reason is that footballers are classed as "intangible assets". In fact, the asset is actually the contract rather than the player himself.

Cheers bud, shows how FFP is not actually fair. Never was, never will be.

 

[Mr Ed (The Stables)]

What we all know anyway.

But how refreshing to hear it coming from the Chief Executive of Everton.

bit by bit Platini's plan will crumble.

Businessdesk North West.

Everton chief questions UEFA Financial Fair Play crackdown

EVERTON FC chief executive Robert Elstone has questioned UEFA's Financial Fair Play rules, arguing they will make it harder for other clubs to challenge the existing elite.

Mr Elstone, who continues to search for new investment for Everton, said the near £1bn spending spree by Abu Dhabi's Sheikh Mansour - which took Manchester City from mid-table to Premier League champions in four years - has been "good for football", despite being attacked by many in the game.

He told a Procurement in Sport forum in Manchester organised by Optimum Procurement that Manchester City's emergence had helped the Premier League secure a 70% increase in its broadcast revenues from BSkyB and BT.

"I think Manchester City's emergence has been good for football in terms of the talent and the players thay have brought into the league. I think it's one of the reasons the new domestic TV deal with Sky and BT is 70% higher than the previous one.

"I think clubs should be allowed to run their business as they see fit - it's been the way it has been done for 130 or so years and now in one fell swoop you can't.

"It basically now ingrains the positions of the top clubs and means no one else will be able to challenge that order."

Mr Elstone told business leaders at the event at Lancashire Cricket Club that the new television deal would be worth around £19m per year more to Everton - on domestic right alone.

"I hope we see similar growth in international too - the Premier League is a phenomenal success and one of this country's biggest exports.

"On any one Saturday it generates £60m and has grown 1,355% since the formation of the league 20 years ago."

He also called for talks between his club and city rivals Liverpool over a new stadium - which both clubs need if they are to grow commercial revenues.

"We are open to talks (with Liverpool) I have said it before and that position remains."

In terms of funding a new stadium, he called for Liverpool City Council to make it a priority, but conceded funding will be tough given the financial climate in both the public and private sector.

"We will need some support in terms of finances from the public sector or a third party, some kind of leg-up."

Finally another club coming out and saying that the whole thing is a disgrace. We were all against the top 4 getting so much money for a number of years and widening the gap, we get some money and suddenly they change the rules to suit the established clubs. Under the current rules no other clubs fans can live the dream like us which is a shame.

The penny is finally dropping with these guys that FFP doesn't create a level playing field for all it just protects the already elite teams from having to deal with another "Man City". From our perspective we managed to get in just before the drawbridge was raised up forever and ever Amen. It may be a club like Everton/Villa if they find investment actually challenge FFP in the European Courts.

 

[Lucky13]

Everton chief questions UEFA Financial Fair Play crackdown

EVERTON FC chief executive Robert Elstone has questioned UEFA's Financial Fair Play rules, arguing they will make it harder for other clubs to challenge the existing elite.

Mr Elstone, who continues to search for new investment for Everton, said the near £1bn spending spree by Abu Dhabi's Sheikh Mansour - which took Manchester City from mid-table to Premier League champions in four years - has been "good for football", despite being attacked by many in the game.

He told a Procurement in Sport forum in Manchester organised by Optimum Procurement that Manchester City's emergence had helped the Premier League secure a 70% increase in its broadcast revenues from BSkyB and BT.

"I think Manchester City's emergence has been good for football in terms of the talent and the players thay have brought into the league. I think it's one of the reasons the new domestic TV deal with Sky and BT is 70% higher than the previous one.

"I think clubs should be allowed to run their business as they see fit - it's been the way it has been done for 130 or so years and now in one fell swoop you can't.

"It basically now ingrains the positions of the top clubs and means no one else will be able to challenge that order."

Mr Elstone told business leaders at the event at Lancashire Cricket Club that the new television deal would be worth around £19m per year more to Everton - on domestic right alone.

"I hope we see similar growth in international too - the Premier League is a phenomenal success and one of this country's biggest exports.

"On any one Saturday it generates £60m and has grown 1,355% since the formation of the league 20 years ago."

He also called for talks between his club and city rivals Liverpool over a new stadium - which both clubs need if they are to grow commercial revenues.

"We are open to talks (with Liverpool) I have said it before and that position remains."

In terms of funding a new stadium, he called for Liverpool City Council to make it a priority, but conceded funding will be tough given the financial climate in both the public and private sector.

"We will need some support in terms of finances from the public sector or a third party, some kind of leg-up."

Aren't most of the mid table premier league fans begging this to come in?! haha Evertons chief Exec saying we are good for football. What do you Everton fans think of that?

They was until they realised it stops any of them being as lucky as we are.

 

[Marvin]

Mid-ranking Premierhship Owners have seen their assets diminish in value to a rich bidder. Under the rules of the game it's no longer possible to transform a football club......so why would any sugar daddy by a football club

FFPR kills the private ownership model in football as it limits competition

 

[scenecreamer]

What is the argument against salary caps?

My friends who don't follow football ask me this quite often.