UEFA £49m Net Wage Cap Question

[andyhinch]

Does any one know the precise details of the €60M cap? Most deals (I believe) these days are paid for in installments so for example if we bought someone for €20M but paid say €10M up front and the rest in insatllments over the players contract would that be a €20M hit this season or just the €10M we actually paid?

No

 

[goalmole]

Sell Agüero to Melbourne Heart for 100m, then they terminate his contract as he bites their manager. Than we sign him on free...

We can spend 149m this summer.:)

The whole fact that UEFA has no say or control over what happens outside of Europe does indeed open up huge loopholes which could, if you wanted, be used to completely circumvent FFP. However, given our lack of willingness to challenge the FFP ruling in the courts due to perceived reputational harm, City would be highly unlikely to make such an open mockery of FFP as the one (jokingly) suggested above.

I don't think it's only about our reputation, i actually think our owners quite like the idea of preserving FFP in it's current form now that they seem to have got over the line relatively unscathed.

 

[more lazy than useless]

Does any one know the precise details of the €60M cap? Most deals (I believe) these days are paid for in installments so for example if we bought someone for €20M but paid say €10M up front and the rest in insatllments over the players contract would that be a €20M hit this season or just the €10M we actually paid?

Either you haven't read this thread (or any of the others), or you're on the wind up!

 

[Matty]

Sell Agüero to Melbourne Heart for 100m, then they terminate his contract as he bites their manager. Than we sign him on free...

We can spend 149m this summer.:)

The whole fact that UEFA has no say or control over what happens outside of Europe does indeed open up huge loopholes which could, if you wanted, be used to completely circumvent FFP. However, given our lack of willingness to challenge the FFP ruling in the courts due to perceived reputational harm, City would be highly unlikely to make such an open mockery of FFP as the one (jokingly) suggested above.

I don't think it's only about our reputation, i actually think our owners quite like the idea of preserving FFP in it's current form now that they seem to have got over the line relatively unscathed.

Possibly, but I'm not convinced on this one. Ultimately FFP would restrict our owners from putting in any decent level of funding going forward. Their aim has always been for the club to be self sufficient, but there would always have left the option open of "topping up" the funding on occasion if the decision was made extra spending was merited, FFP removes that option.

 

[Matty]

Does any one know the precise details of the €60M cap? Most deals (I believe) these days are paid for in installments so for example if we bought someone for €20M but paid say €10M up front and the rest in insatllments over the players contract would that be a €20M hit this season or just the €10M we actually paid?

It's been asked, and answered, many times now. Ammortisation (which is what you're talking about here) is an accountancy method of sperading the cost out over the length of a contract, this UEFA ruling isn't concerned with that at all. It's a straight up "value of transfer", so if we buy players who, in total, cost €60M then that's us at the limit. The fact that it may well be €60M spread out over 10 cumulative years, so just €6M a year as far as accountancy is concerned isn't what's being measured here.

 

[Essex blue]

Nothing to stop us loaning players just carnt spend more than 49mill net!

Maybe we can do a loan deal for messi lol

 

[ccr]

Think I get it now. Teams without any debt can,t spend money. Teams that are up to their eyelids in debt can spend millions. Seems reasonable.

 

[BlueAnorak]

€60m = £48.92m is the NET transfer fees we can spend on top of sales.
Lets hope the the club have a clause in the agreement that the transfer fee is based on the exchange rate in place when the deal was done. Otherwise UEFA will do us over again.

 

[aguero93:20]

€60m = £48.92m is the NET transfer fees we can spend on top of sales.
Lets hope the the club have a clause in the agreement that the transfer fee is based on the exchange rate in place when the deal was done. Otherwise UEFA will do us over again.

Or the Euro could get stronger and allow us to spend more...

 

[goat boy]

FFP FAQ FTW.