The end of financial 'fair' play?

[Project]

The CL TV money goes up substantially this coming season. The winners should receive £100m...up £40m from what Chelsea will have got.

Put simply FFP should be a relative breeze should our cost structure remain the same. My concern is that clubs will now have an extra £40-50m to play with, and CL clubs £70-100m more... It's going to get a lot harder for us from a competitive POV.

 

[citysix]

FFP will never work that is all.

 

[mayo31]

I swear each of us could right a thesis paper on this subject.

Ha ha, I see what you did there - using the word right

 

[JM Mcr]

I wonder whether this deal had been leaked to the clubs beforehand? If so, it would help explain Chelseas upcoming splurge in the market.

Although the revenue from the new deal won't come into play til 2013/14 - don't know how that will affect any loss Chelsea make in 2012/13 for ffp purposes.

In my opinion, whilst probably not knowing details of actual amounts, clubs must have had an idea that a huge increase in tv revenues was in the offing with the advent of a serious competitor to the sky bid (Al Jazeera)..Sky knew they had to make a huge bid to be certain of retaining the rights (and I can't see BSkyB lasting 5 minutes if they lost premier league rights). I bet the size of the BT offer, to see off ESPN, was a surprise for them tho..

 

[St Helens Blue (Exiled)]

Loving this thread..

Can someone confirm for me the Aguero and Nasri signing will be included in this years figures? theres 60 mill straight away...

 

[bluemoondays]

Loving this thread..

Can someone confirm for me the Aguero and Nasri signing will be included in this years figures? theres 60 mill straight away...

Doesn't work that way - their costs are spread over the duration of their contract. For example, Aguero was £38m over 5 years so he'd appear in the books as costing circa £7.5m/year.

 

[grunge]

Does anyone have a link to how much teams will get with the new TV deal?<br /><br />-- Thu Jun 14, 2012 11:51 am --<br /><br />

Loving this thread..

Can someone confirm for me the Aguero and Nasri signing will be included in this years figures? theres 60 mill straight away...

Doesn't work that way - their costs are spread over the duration of their contract. For example, Aguero was £38m over 5 years so he'd appear in the books as costing circa £7.5m/year.

Isn't that only if we choose to pay in instalments? I thought we were paying everything up front with only the salary spread out?

 

[boyblue1985]

I wonder whether this deal had been leaked to the clubs beforehand? If so, it would help explain Chelseas upcoming splurge in the market.

Although the revenue from the new deal won't come into play til 2013/14 - don't know how that will affect any loss Chelsea make in 2012/13 for ffp purposes.

In my opinion, whilst probably not knowing details of actual amounts, clubs must have had an idea that a huge increase in tv revenues was in the offing with the advent of a serious competitor to the sky bid (Al Jazeera)..Sky knew they had to make a huge bid to be certain of retaining the rights (and I can't see BSkyB lasting 5 minutes if they lost premier league rights). I bet the size of the BT offer, to see off ESPN, was a surprise for them tho..

Apparently Al Jazeera didn't bother bidding for it

 

[Shaelumstash]

People seem to be getting excited that the new Sky Premier League deal and increase in CL money will mean we will sail through the FFP regulations. Unfortunately this is not the case. Our competitors in the PL and CL will also benefit from this increase, so that increases their spending power.

You can guarantee agents and selling clubs know all about the increase, and will reflect that in the contracts / transfer fee's they demand. If everyone gets more, we are gaining no advantage, rather the whole market will just become inflated.

The only way to gain any advantage over our competitors with regards to FFP is to increase our own revenue's where others do not. Commercially the Nike and Etihad deals should help with that, but I still have a feeling Etihad will be treated as a related party and the value of the deal will questioned by UEFA.

The other are for improvement is matchday, and although there is a 9% increase on tickets next season, I don't think that will touch the sides. The real area for potential growth is in corporate hospitality. Arsenal are the big players in this area in England, and I can't see us ever catching them on that because of the nature of their North London location and fan base. There is certainly room for improvement though.

 

[LongsightM13]

No, because football inflation will see player salaries and fees increase accordingly.
An interesting analysis in the Express today

PREMIER LEAGUE clubs will have to circle the ­wagons tightly to stop the cowboys from plundering their new-found riches as the prospect of the world’s first £20 million-a-year footballer lurks on the horizon.
Football agents are already rubbing hands at the prospect of securing their clients their usual slice of the ever-growing pie.
In 1992, the Premier League wage bill was £113m – three times the £38m-a-year TV deal. Twenty years later the wage bill has already grown to £1.4 billion – again three times the annual revenue from domestic broadcast rights. It’s a constant.
Indications are, then, that if the overall pot then rises a further 70 per cent the season after next, the players – less their agents’ slice – will pocket the lot.
It is an unshakeable historical trend of which Premier League chief executive Richard Scudamore is acutely aware and as such used the platform of yesterday’s announcement to appeal for sense when the spoils are shared.
However, if the agents get their way, the highest-paid players such as Manchester City’s Yaya Toure can expect their wages to climb above the £400,000-a-week mark.
If international broadcast rights – which go to tender later this year – mirror the domestic ones, Wigan’s payments from central funds which were £43m this season would rise to £73.1m under the new arrangements.
By the same token, Wolves – who pocketed £39m for finishing bottom – would earn themselves about £66m. That is more than Manchester City were able to claim in May under the current arrangement for actually winning the title.
It is a gravy train that nobody wants to fall off before the big money kicks in.
“I will be even greyer by Christmas,” said Whelan. “The relegation battle will be the hardest-fought ever.”
Parachute payments of £48m were agreed just two years ago for clubs relegated to the Championship after an acrimonious take-it-or-leave-it offer was made. Other than that, 8.75 per cent of Premier League revenue filters its way down the football pyramid.