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The General FFP (Financial Fair Play) Thread


Marka Ragnos

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18 hours ago, ender4 said:

It’s funny that we both read the same articles and have interpreted it completely different.  
 

As far as I can tell, and I’m pretty confident that is what The Times and The Athletic are trying to say, is that this new fixed cap will REPLACE the 85% PSR limits. The key word there in both articles is the word “replace”.   
 

Of course, they might be wrong themselves, but that is what they are telling us.  In my interpretation of course.

They are saying the 85% cap replaces the current PSR rules that we have right now. Then there is an additional cap of 4x base club’s revenue. 

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20 hours ago, bobzy said:

I think you're missing what OP is saying.  It isn't "£400m on transfers", it's "£400m on everything including transfers (amortised) and wages and staff costs and buying toilet roll and..."

No it isn't. It's squad costs only - which is Amortisation, Agents Fees and Wages. 

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ok ok,

so it’s an 85/70% of own revenue cap for every club in the league, but max of the x4 of the lowest club revenue in the league. 
 

so if you’re a club with yearly outgoings bigger than that x4, you have to make changes or get sanctions?

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10 hours ago, Mazrim said:

Why would we want to spend less? We could outmuscle all but 2 clubs maybe in the league if the shackles were off?
Then again, the proposed cap would allow us to spend a shitload anyway so why vote against it? I'm scratching my head a bit tbh.

The lowest clubs revenue x 4 is going to be half a billion, we generate about half of that.

why do fans think owners want to put that into their clubs each year? Why not x 3 making it half the loss for us? Whatever the limit is will be the target for spending or get left behind.

this is all pointless anyway, any club who plays European football or aspires to needs to comply with their FFP/PSR

this sort of thing only sorts the issue for bottom 6/8 clubs 

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On 29/04/2024 at 20:29, MotoMkali said:

Agents fees are also included. 

No, it’s complicated, but mostly they aren’t

Quote

This is because when clubs pay agents for the work they do for the club in securing a transfer, that fee is considered to be an external cost in acquiring an asset and is therefore capitalised on the balance sheet.

This means about half of the fees clubs pay agents appear in their accounts as depreciation, not amortisation. Depreciation is how accountants recognise the declining value of an asset — like a stadium, training ground or some of what an agent does — over time. While this may sound very technical and, frankly, a bit dull, it is important in regards to squad cost calculations, as it should significantly reduce the amount of agents’ payments that actually count — only the payments which relate to services agents provide to players matter, as they are expensed through the club’s annual profit and loss accounts, in the same way as wages.

Only the (ludicrous) situation whereby a club may pay a players agent for work that agent does for a player would be amortised. Agent fees for work an agent does for a club, no.

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9 hours ago, blandy said:

No, it’s complicated, but mostly they aren’t

Only the (ludicrous) situation whereby a club may pay a players agent for work that agent does for a player would be amortised. Agent fees for work an agent does for a club, no.

I meant in the new 4.5x TV deal. You would be allowed to spend that on squad costs which is agents fees, amortisation and player wages. 

Maybe as you say some of them are not counted, but we would need more details to come to that conclusion for certain. 

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Legal challenge has been commenced against Associated Party deals and FMV, Ziegler believes it’s Man City. If the case is successful it will have major implications for sponsorship deals.

 

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  • 3 weeks later...

Maybe best place to put this info byt rumour is Dortmund will get more money from losing the Champions League final to Real Madrid than if they win it as its a clause in Bellingham deal

This could be an issue going forward

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1 hour ago, Zatman said:

Maybe best place to put this info byt rumour is Dortmund will get more money from losing the Champions League final to Real Madrid than if they win it as its a clause in Bellingham deal

This could be an issue going forward

The amount will be pretty trivial compared to winning arguably the most prestigious trophy going.  I don't see it as a particular issue.

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Just now, bobzy said:

The amount will be pretty trivial compared to winning arguably the most prestigious trophy going.  I don't see it as a particular issue.

This game is fine but in other scenarios like for example an FA Cup final if its City vs Everton

If Everton sold a player to City and got 5 million if won an FA Cup but get maybe 2 million for winning it alone. FFP might kick in and Everton board might tell the manager to rest players

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Posted (edited)
28 minutes ago, Zatman said:

This game is fine but in other scenarios like for example an FA Cup final if its City vs Everton

If Everton sold a player to City and got 5 million if won an FA Cup but get maybe 2 million for winning it alone. FFP might kick in and Everton board might tell the manager to rest players

I still think the amount would have to be insane.  I can't see it ever being an issue.

Edited by bobzy
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11 hours ago, Zatman said:

This game is fine but in other scenarios like for example an FA Cup final if its City vs Everton

If Everton sold a player to City and got 5 million if won an FA Cup but get maybe 2 million for winning it alone. FFP might kick in and Everton board might tell the manager to rest players

You make a good point but you have to factor in all the other financial benefits Everton would earn from winning the cup (merchandise, exposure etc.)

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I think its a good proposal from palace tbh.

All the top sides will vote for it- you would imagine forest everton and Leicester will too as they having FFP problems. Palace will vote in favour of it too so. If you include the top 8 clubs and those 4 thats 12.

So only need 2 or more from the rest of the league to vote in favour of it. West ham and brighton being the key two i think which could go 50/50

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I think its a terrible idea. I enjoy watching these clubs squirm into having to run a business properly

Leeds are a huge example of how football is financially mismanaged and teams should be forced to go the other way instead of spending more

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11 minutes ago, Delphinho123 said:

 The Premier League is a disgrace tbh. Leicester being threatened with a record points deduction (15+)? All the while the 115 charges loom. 

The integrity of the league is absolutely through the floor. 

Isn’t the case against City starting soon, with the results to be revealed next Summer? (coinciding with Pep’s contract expiring so he be absolved of any blame/criticism 🧐)

Sadly due to the large amount of charges against City, this was never going to be expedited quickly, couple that with City’s failure to co-operate and deploying the best legal team their endless money can pay for to frustrate and delay proceedings. 

The likes of Forest, Everton and Leicester will have complied with the investigation, with a lot of the evidential material agreed upon prior to the hearing(s), hence they’ve been heard quicker. 

It’s wrong that it’s taken so long for the case against City to be heard but that is the nature of litigation, especially when one party will do everything to slow the process down.

 

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