EFL Statement - Club has no obligation to submit and agree business plan

[Babylon]

14 minutes ago, stu said:

According to the CFRU submission, Leicester have not refuted the suggestion they could be in breach of the PSR rules, and whether the club is promoted or not, they will still face sanctions if they are found in breach for this season, although if they are promoted it would likely be just a fine.

No because we've sort of taken the view that it's none of their business until March. 

[ClaphamFox]

4 minutes ago, moore_94 said:

At least it looks like about half the league could be getting points deductions pretty soon

It’s clearly not just us. The reason we’re currently in the news is because we successfully challenged the EFL’s right to impose a business plan requirement on us and they’ve got the arse about it. If we’d have just agreed to that, negotiations would probably just be quietly going on in the background. I can’t imagine Leeds are in much better shape than us, so maybe they just agreed to the business plan demand?

[m4DD0gg]

If half the league are going to be hit i just cannot see it being followed through on, something will have to give, either the entire FFP process or something more drastic.

 

Off topic - but im sure i have read the KP owners are friends with the sultan of brunei and his crew. Comon top get it sold to these guys.

[Lionator]

3 minutes ago, UniFox21 said:

There's probably enough teams to count on one hand who aren't being impacted 

Man Utd, Liverpool, Arsenal

[Chelmofox]

3 minutes ago, moore_94 said:

At least it looks like about half the league could be getting points deductions pretty soon

And if player sales dry up because no one wants to buy in a certain accounting period then this just exacerbates the situation. There will only be a handful of clubs who can actually buy anyone and my tin foil hat says they could be quite selective about who they would want to asset strip, or leave in the sh1t.

 

I really don't know what the PL wants from this anymore. A ruling that largely brings the industry to its knees creates a bigger problem than the problem that existed before it.

[Babylon]

19 minutes ago, StanSP said:

How much would we need to get in through player sales before end of June to even have a sniff of being okay for next season? 

Nobody has a scooby... don't forget on promotion we can get money in the door quickly through new sponsorships etc. 

 

There is a lot of guess work doing heavy lifting in all these articles. 

[Chelmofox]

5 minutes ago, m4DD0gg said:

If half the league are going to be hit i just cannot see it being followed through on, something will have to give, either the entire FFP process or something more drastic.

 

Off topic - but im sure i have read the KP owners are friends with the sultan of brunei and his crew. Comon top get it sold to these guys.

It wont make a difference.

[ClaphamFox]

19 minutes ago, stu said:

Interesting quote from that. I assume we would still be at the mercy of the Premier League, so wouldn’t be the end of it if we do go up: 

 

According to the CFRU submission, Leicester have not refuted the suggestion they could be in breach of the PSR rules, and whether the club is promoted or not, they will still face sanctions if they are found in breach for this season, although if they are promoted it would likely be just a fine.

This is new to me - I thought reports suggested we’d likely have a points deduction irrespective of whether we got promoted or stayed in the Championship? If it’s more likely to be a fine, that changes the picture considerably.

 

The next question would then be whether that fine would count in future PSR calculations or would be deducible…🤔

[kenny]

14 minutes ago, CosbehFox said:

That’s a turnover or revenue of our own boosted by European football

And players sales. We managed to sell a player most seasons for a decent fee.

 

If KDH goes for £40m this season then it shows we have learnt our lesson and we need to be planning our next big sale the following summer.

[UniFox21]

10 minutes ago, Lionator said:

Man Utd, Liverpool, Arsenal

Pretty confident I read Man United admitted they couldn't go out and spend during January due to the regulations

[StanSP]

30 minutes ago, moore_94 said:

At least it looks like about half the league could be getting points deductions pretty soon

Be interesting to see how many actually stick? Wonder what kind of lawyers the club have to potentially fight this, and if we'll 'lawyer up' with other clubs too...? 

 

 

16 minutes ago, Babylon said:

Nobody has a scooby... don't forget on promotion we can get money in the door quickly through new sponsorships etc. 

 

There is a lot of guess work doing heavy lifting in all these articles. 

True. Perhaps we're banking on that. While there's nothing concrete, it does make you worry to a certain extent. 

[st albans fox]

14 minutes ago, Chelmofox said:

It wont make a difference.

on the day to day football side that is true 

BUT

king power underpaid for shirt sponsorship for years 

king power underpaid for the stadium naming rights for years 

that extra income would have helped 

 

putting the money in as share capital (which is allowed up to limits) covers the holes but a v wealthy ownership would have done both 

 

and of course stadium development cost which doesn’t affect ffp will bring in additional income. A v wealthy ownership would have bankrolled that some time ago. 

[Babylon]

20 minutes ago, ClaphamFox said:

This is new to me - I thought reports suggested we’d likely have a points deduction irrespective of whether we got promoted or stayed in the Championship? If it’s more likely to be a fine, that changes the picture considerably.

 

The next question would then be whether that fine would count in future PSR calculations or would be deducible…🤔

I think all the new rules, cross division rules etc are so complex most of the reporters seem to struggle with getting their heads around it all. It's incredibly complex compared to how it used to be. 

 

I took it that it meant the EFL would fine us, the premier league could take its own punishment. Could be a proper fisting if things are dire. 

 

We've been trying to cut the cloth for more than a year and a half now. We've lost loads of high earners, sold £170m+ worth of players, got more high earners leaving in the summer. 

 

Whilst we might get a short term kicking, I don't think we'll be too far from getting things back down to a manageable level, sooner rather than later. 

 

It's hard, when they bring these rules in, they are often at relatively short notice, considering you have players sat on 4 and 5-year contracts, it's like trying to do a U-turn in an oil tanker. And obviously worse for clubs who were very finely balanced financially. 

[st albans fox]

1 hour ago, Pliskin said:

I don't think KP would ever completely sell the club, but I can see them selling a portion of the club to other investors at some point. 

Do wealthy people invest to make money from football?  The Americans have been trying but are quickly realising that away from the rich six, there is only pain and losses because of the way it’s run.  People will surely only buy in if they have a guarantee that it’s part of a process to take full control at some point at an agreed price. 
 

26 minutes ago, Babylon said:

Nobody has a scooby... don't forget on promotion we can get money in the door quickly through new sponsorships etc. 

 

There is a lot of guess work doing heavy lifting in all these articles. 

Which is why our drop off in results will be going down like a lead balloon in the boardroom 

[filbertway]

2 hours ago, HighPeakFox said:

I think it is because it is almost impossible to run such a venture at a profit.

Which it shouldn't be. Once people realise that maybe very average Premer League players don't need to be paid £70-80k a week and they should maybe earn 20-30k a week. We'd very quickly see teams not spending 90-100% of their income on their playing staff.

 

Certainly feels like we're experience the bubble start to burst.

[coolhandfox]

3 minutes ago, filbertway said:

Which it shouldn't be. Once people realise that maybe very average Premer League players don't need to be paid £70-80k a week and they should maybe earn 20-30k a week. We'd very quickly see teams not spending 90-100% of their income on their playing staff.

 

Certainly feels like we're experience the bubble start to burst.

That's the issue players and agent sucking the game dry.

[shen]

4 minutes ago, coolhandfox said:

That's the issue players and agent sucking the game dry.

One of many issues. If the demand is there, then I understand the players' wish to maximise their income. Don't think they are the source or cause of FFP issues.

[K789]

Chelsea looking at a 2 year loss of 230 mill, they need to sell the whole squad by end of June looking at this! Premier league gonna be farcical next year

[UniFox21]

21 minutes ago, Babylon said:

I think all the new rules, cross division rules etc are so complex most of the reporters seem to struggle with getting their heads around it all. It's incredibly complex compared to how it used to be. 

I don't think it's just reporter's at this point. Clubs seem confused, governing bodies seem confused.

 

Not suggesting the rules need to be simple, but there seems to be continual grey areas In and between divisions 

[TheGoldenGod]

56 minutes ago, m4DD0gg said:

If half the league are going to be hit i just cannot see it being followed through on, something will have to give, either the entire FFP process or something more drastic.

 

Off topic - but im sure i have read the KP owners are friends with the sultan of brunei and his crew. Comon top get it sold to these guys.

This is irrelevant by the way. Newcastle have proven you can have the richest owners known to man and it doesn't allow you to spend what you want.

[Dahnsouff]

13 minutes ago, filbertway said:

Which it shouldn't be. Once people realise that maybe very average Premer League players don't need to be paid £70-80k a week and they should maybe earn 20-30k a week. We'd very quickly see teams not spending 90-100% of their income on their playing staff.

 

Certainly feels like we're experience the bubble start to burst.

In which case you would see a true division emerge between competitive teams and those that can only be there for their season in the sun before being relegated or return to being non TOP level whipping boys.

Means the any competitiveness in the premier league would be in split into  TOP level or the ALSO RANS, thus the Premier League would decay more and more each season in terms of spectacle.

[Babylon]

Just now, TheGoldenGod said:

This is irrelevant by the way. Newcastle have proven you can have the richest owners known to man and it doesn't allow you to spend what you want.

I can't fathom that people are on here still thinking new ownership = more money to spend. 

[goose2010]

21 minutes ago, filbertway said:

Which it shouldn't be. Once people realise that maybe very average Premer League players don't need to be paid £70-80k a week and they should maybe earn 20-30k a week. We'd very quickly see teams not spending 90-100% of their income on their playing staff.

 

Certainly feels like we're experience the bubble start to burst.

the bubble needs to burst but they wont let it that's the problem. The rules will change. 

[Les-TA-Jon]

1 hour ago, ClaphamFox said:

It’s clearly not just us. The reason we’re currently in the news is because we successfully challenged the EFL’s right to impose a business plan requirement on us and they’ve got the arse about it. If we’d have just agreed to that, negotiations would probably just be quietly going on in the background. I can’t imagine Leeds are in much better shape than us, so maybe they just agreed to the business plan demand?

Hmm not sure. Leeds and Southampton never had a couple of years maxing out the wage bill and trying to break into the top 6? 

[filbertway]

3 minutes ago, Dahnsouff said:

In which case you would see a true division emerge between competitive teams and those that can only be there for their season in the sun before being relegated or return to being non TOP level whipping boys.

Means the any competitiveness in the premier league would be in split into  TOP level or the ALSO RANS, thus the Premier League would decay more and more each season in terms of spectacle.

Probably, like every league in the world. The only difference would be that clubs futures and livelihoods wouldn't be be put at risk.

 

Also if it makes the premier less interesting to outsiders then that's a net gain to me. Less foreign ownership probably isn't a bad thing, especially the amount of Americans coming in. Once they get the magical number of voting rights in the league, it'll quickly cease to be the game you fell in love with anyway.