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The AVFC FFP thread


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Hopefully the Adidas news and potential CL income next season will put us in good stead for next season. 

With our squad being so strong at the moment and us only really needing one position in the 11 to be improved on, we're in a good spot right now. 

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I'll be surprised if the Adidas deal is below £25m.

Newcastle got £30m with champions league secured,  but they're already out of it and don't look like getting it next season either.

The stats have us very likely to land champions league,  so I'd hope we got the same, but realistically it will be a huge improvement on the £3m from Castore whatever.

And we get better kits to boot :).

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Proof if any were needed that we do not need CEOs and financial/ marketing directors.   Nas has gone and got the best manager and the best kit manufacturer we could possibly get. Will save some money as well for FFP purposes !!!

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Finally. It took long enough for the obvious to happen.

Spurs signed an amazing long term deal with Nike back when they got into CL. Let's hope we have got a right good deal. Nassef is the largest shareholder of Adidas so we better be getting a sweet deal. 

Will definitely be a welcome boost to our FFP position 

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1 hour ago, MrBlack said:

I'll be surprised if the Adidas deal is below £25m.

Newcastle got £30m with champions league secured,  but they're already out of it and don't look like getting it next season either.

The stats have us very likely to land champions league,  so I'd hope we got the same, but realistically it will be a huge improvement on the £3m from Castore whatever.

And we get better kits to boot :).

It's maybe a flexible deal where they pay us more if we qualify for CL. Maybe more again if we qualify for the knock-outs.

 

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3 minutes ago, CVByrne said:

Finally. It took long enough for the obvious to happen.

Spurs signed an amazing long term deal with Nike back when they got into CL. Let's hope we have got a right good deal. Nassef is the largest shareholder of Adidas so we better be getting a sweet deal. 

Will definitely be a welcome boost to our FFP position 

I would imagine Nassef has stayed quite clear of the deal. Commercial deals are so heavily scrutinised now, particularly those where parties have a conflict of interest. 

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1 minute ago, El-Reacho said:

It's maybe a flexible deal where they pay us more if we qualify for CL. Maybe more again if we qualify for the knock-outs.

 

All the sponsorship deals all the clubs have pays more of you are in CL. Even the ones United etc.. have 

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On 20/11/2023 at 13:30, blandy said:

They don't and they didn't. But there's a thread for general FFP discussion, (as opposed to Villa's specific FFP stuff). Please can posters use the right thread.

 

@blandy do you know how stadium investment works as part of FFP when the club doesn't own the stadium? Now the stadium is part of a group, could the owners if they wanted choose to just throw money at improvements? I assume this would see an increase in our rent.

Been wondering for a while who needs to make the investment here. 

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1 hour ago, CVByrne said:

Finally. It took long enough for the obvious to happen.

Spurs signed an amazing long term deal with Nike back when they got into CL. Let's hope we have got a right good deal. Nassef is the largest shareholder of Adidas so we better be getting a sweet deal. 

Will definitely be a welcome boost to our FFP position 

Our Castore deal worth £3m per year is pretty decent if you compare it to mere £90m Adidas pays Man Utd every year 😜 not sure why we would want to change 😂

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1 hour ago, cheltenham_villa said:

@blandy do you know how stadium investment works as part of FFP when the club doesn't own the stadium? Now the stadium is part of a group, could the owners if they wanted choose to just throw money at improvements? I assume this would see an increase in our rent.

Been wondering for a while who needs to make the investment here. 

Yes, that’s it.

For accounting purposes and FFP the club spends money on renting the ground. Something like 5 mill a year, without checking.  If he ground’s owners either reduce the ground’s utility (say by demolishing a stand) or improve it (say be increasing capacity and facilities, like I dunno, a New North stand) then the football club (and FFP) would expect the rent to be adjusted accordingly, as you suggest, yes.

The fact that the ground’s owners are the same people who own the club means, obviously, it’s these people who make the investment. They might partner up, or get other investors or whatever, but for Premier League P&S purposes spending on upgrading facilities is excluded anyway from the permitted losses, so even if the club owned the ground it would be fine.

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10 hours ago, Czarnikjak said:

Our Castore deal worth £3m per year is pretty decent if you compare it to mere £90m Adidas pays Man Utd every year 😜 not sure why we would want to change 😂

The Kappa deal was around £3m. I think the Castore deal was closer to £10m per year and we're hopefully getting £25-30m per year now with Adidas.

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4 minutes ago, CVByrne said:

I think the Castore deal was £10m per year and we're hopefully getting 25-30m per year now with Adidas 

No, all sources I've seen agree on £3m per year. Perhaps £10m in total for 3 years.
 

From Adidas more realistic would be around £10m going upto £15m if we qualify for CL. No chance in hell we will getting anywhere near £30m. Spurs are getting £30m currently after years of qualifying for Europe and much larger world wide following than us.

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9 minutes ago, Czarnikjak said:

No, all sources I've seen agree on £3m per year. Perhaps £10m in total for 3 years.
 

From Adidas more realistic would be around £10m going upto £15m if we qualify for CL. No chance in hell we will getting anywhere near £30m. Spurs are getting £30m currently after years of qualifying for Europe and much larger world wide following than us.

I think no details of Castore deal have ever been released. The reports quoted the old Kappa deal of £3m, and now when reporting the switch from Castore they have no numbers to go on so quote the old Kappa one. It's unlikely we got simply the same terms as the old Kappa one. Anyway, it's surely a big jump to Adidas for us. It will help a lot with FFP

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It's really difficult to find values on individual deals nowadays, I guess that's because clubs want to keep an element of cover for FFP and that the deals are much more complicated than they used to be. 

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21 hours ago, OutByEaster? said:

It's really difficult to find values on individual deals nowadays, I guess that's because clubs want to keep an element of cover for FFP and that the deals are much more complicated than they used to be. 

Yeah have to use what is reported and made more difficult bec of add ons as they are paid whenever they are hit

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On 09/01/2024 at 22:45, blandy said:

Yes, that’s it.

For accounting purposes and FFP the club spends money on renting the ground. Something like 5 mill a year, without checking.  If he ground’s owners either reduce the ground’s utility (say by demolishing a stand) or improve it (say be increasing capacity and facilities, like I dunno, a New North stand) then the football club (and FFP) would expect the rent to be adjusted accordingly, as you suggest, yes.

The fact that the ground’s owners are the same people who own the club means, obviously, it’s these people who make the investment. They might partner up, or get other investors or whatever, but for Premier League P&S purposes spending on upgrading facilities is excluded anyway from the permitted losses, so even if the club owned the ground it would be fine.

So the real question about the decision to rebuild the north stand is how the entity that owns it gets a return on investment.

So for 100m investment, that feels like a significant rent increase. 

It also makes me wonder how much can truly be hecks impact, to my knowledge he's not involved In the organisation that owns the stadium. 

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1 hour ago, MaVilla said:

when will we get to see the accounts?, so the whizz kids can figure out our FFP situation?

I’d imagine ours wouldn’t look too great if not for the academy player sales.

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4 hours ago, cheltenham_villa said:

So the real question about the decision to rebuild the north stand is how the entity that owns it gets a return on investment.

So for 100m investment, that feels like a significant rent increase. 

It also makes me wonder how much can truly be hecks impact, to my knowledge he's not involved In the organisation that owns the stadium. 

The ground is owned by the same people as own the club, so obviously the value of their portfolio of assets will rise after replacing the north stand. Meanwhile, the club will see perhaps 50% rise in income from hosting and match day sales, and the company that owns the ground will see, perhaps, a 50% rise in rental income. That’s just speculative figures, but there will definitely be a business case for it, for NSWE. It may have been impacted by the spiralling price of building materials and of construction generally, of course.

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