Our system detected that your browser is blocking advertisements on our site. Please help support FoxesTalk by disabling any kind of ad blocker while browsing this site. Thank you.
Jump to content
steveherbe

Financial Fairplay Starts In Coming Season

Recommended Posts

Posted

Oh dear, this doesnt look good for us:

Taken from BBC site.

Championship clubs vote in favour of Financial Fair Play

Championship clubs have voted to implement Financial Fair Play (FFP) regulations from next season.

Clubs will have to meet new pre-defined limits on pre-tax losses, with harsher sanctions implemented to clubs that fail to comply.

The changes will also prevent owners from funding their clubs through loans.

"They will begin to lay the foundations for a league of financially self-sustaining football clubs," said Football League chairman Greg Clarke.

He added that sanctions would not be implemented until the 2014-15 season.

The new regulations, based on Uefa's break-even model of FFP, will see limits on losses reduced from £12m to £5m over the next five seasons.

The changes will also force owners to fund clubs with equity as opposed to loans, while youth investment and accounting charges from past spending on players and stadium-building will not be included.

Promoted clubs who fail to adhere to the amendments must pay a fair play tax ranging from one per cent on the first £100,000 to 100 per cent on anything over £10m.

Non-promoted clubs will not be punished financially for failing to adhere to the new rules, but instead placed under a transfer embargo.

Leagues One and Two will continue to limit spending on wages to a proportion of turnover.

Analysis

Richard Conway

BBC Sport

These new regulations seek to curb the risks some clubs go to when pursuing their dream of reaching the Premier League.

Clubs will now face financial or other sanctions if they overspend. For instance, QPR - who made a loss of £25.4m in their promotion season - would have been levied a fine of around £15m if the new regulations had been in place last year.

Riches await those clubs who reach the Premier League. But, as Portsmouth's recent troubles demonstrate, those who live beyond their means often have a long way to fall when the dream turns sour.

Posted
Championship clubs who record losses of over £6m will receive either a transfer embargo or a fine that could run into the millions from the 2014-15 season.

Three of the 24 clubs voted against new regulations to limit investment from owners and curb total spending.

The changes will also prevent owners from funding their clubs through loans.

Football League chairman Greg Clarke said: "They will begin to lay the foundations for a league of financially self-sustaining football clubs."

Owners will be allowed to invest £6m next season, £5m the year after, then £3m in the 2014-15 season.

The new regulations are based on Uefa's break-even model of FFP.

Youth investment and accounting charges from past spending on players and stadium-building will not be included.

Promoted clubs who fail to adhere to the amendments must pay a fair-play tax ranging from one per cent on the first £100,000 to 100 per cent on anything over £10m.

Non-promoted clubs will not be punished financially for failing to adhere to the new rules, but instead placed under a transfer embargo.

http://www.bbc.co.uk...otball/17841566

This adds weight to the recent story on SkySports about Pearson planning a clear-out, presumably based around the higher earners (if anyone will have them).

Posted

At least it will get the highest earners off the bill.

<p>

<br />

<a href='http://www.bbc.co.uk/sport/0/football/17841566' class='bbc_url' title='External link' rel='nofollow external'>http://www.bbc.co.uk...otball/17841566</a><br />

<br />

<br />

<br />

<br />

<span style="color: #1C1C1C"><span style='font-size: 8px;'><br />

Clubs will have to meet new pre-defined limits on pre-tax losses, with harsher sanctions implemented to clubs that fail to comply.</span></span><span style="color: #1C1C1C"><span style='font-size: 8px;'><br />

<strong>The changes will also prevent owners from funding their clubs through loans.</strong></span></span><br />

Oh oh.

Posted

I would say I am in favour or this sort of thing, if implemented correctly. It would potentially stop the rich clubs getter richer, and the poor becoming extinct. I think in light of this, Pearson is the man to take us forward given his ability to maintain a good wage bill.

Posted

Right, we need to start beng sensible with the bids and wages we are willing to pay.

Get players out and be clever with our signings, we don't need to break the bank to be successful.

Posted

The way we were going we would have been bust by now, at least under these FFP rules and regulations our club won't be overspending and we might be able to buy young talent and have sustainable growth rather than buying the premier league dream so quickly. Looks like the Thais are going to have to put some actual cash in instead of loans.

Posted

we're doomed. it's gonna be hard to clear out players when no1 else in the division can afford to buy them. no1 in the prem will want them and i don't see any big clubs on the continent scouting matt mills etc.

Posted

Right, we need to start beng sensible with the bids and wages we are willing to pay.

Get players out and be clever with our signings, we don't need to break the bank to be successful.

I agree, hopefully this means a more level playing field for everyone. I just hope the Thais will be able to back us, i mean - they would surely also welcome the change?

I wonder if we voted in favour?

Posted

3 clubs out of the 24 didn't vote in favor, I think it is quite likely we didn't vote in favor, probably alongside West Ham and Brum?

Posted

BBC:

21 out of 24 Championship clubs voted in favour of the new rules, which are modelled on Uefa's financial fair play regulations. The plans curb Football League debt by limiting investment from owners and total spending. From the 2014-15 season, clubs who record total losses of over £6m will receive either a transfer embargo or a fine that could run into the millions.

Aren't we running at about £1m a month loss, so I heard somewhere, which doesn't paint a pretty picture when it tots up over a season!

Posted

so in theory, Air Asia or another company within their little circle could sponsor our kit for say £50m a year? they are not our owners, so they can give us what they feel is required to secure our shirt sponsorship? if so there will be many loopholes in this rule!

Posted

53m in loans from the owners kind of screws us according to what I've read on the beeb? Massive shirt and stadium sponsorship!

Posted

we're doomed. it's gonna be hard to clear out players when no1 else in the division can afford to buy them. no1 in the prem will want them and i don't see any big clubs on the continent scouting matt mills etc.

No we're not, We've essentially got till the 2014/15 season to bring the costs down, which co-incidentally is when nearly all the contracts run out.

It should make for a more competitive league and perhaps make clubs look at home grown (there youth set ups) talent rather than the quick fix. looking forward tom it.

Indeed, good job we've picked up a few (supposedly decent) youths 'recently'.

Posted

We now see why tickets prices are going up the fans are having to pay for the Thais reckless extravagance.

Posted

BBC:

Aren't we running at about £1m a month loss, so I heard somewhere, which doesn't paint a pretty picture when it tots up over a season!

That is for the 2014-15 season. It will be losses of £12m initially. Hopefully, we'll be in the PL by 2014-15, anyway.

Posted

http://www.guardian.co.uk/football/2012/apr/25/premier-league-fair-play-tax

"The Football League has stressed, though, that clubs will not be subject to sanctions until the reporting period of season 2013-14 in order to give them a spell of "transition".

Does anyone understand how this statement differs from the gist of the BBC article. Perhaps no sanctions will apply for excessive expenditure before next season 2012/2013 commences and the strict sanction rules will not commence until accounts are lodged in December 2013.

Hopefully, the position will become clearer when the small print has been digested.

It seems to give clubs relegated to the Championship an unfair advantage with the benefit of parachute payments (which I think now last for 3 years).

Posted

That is for the 2014-15 season. It will be losses of £12m initially. Hopefully, we'll be in the PL by 2014-15, anyway.

Yeah, we need to drop at least £6m a year off our spending or £500,000 a month within 2 seasons.

Posted

Doesn't matter for a few years yet. Plus we'll find ways around it.

I'm still baffled by the rules if I'm honest. We might as well just put the league in order of gate receipts and not bother playing any matches, because without outside investment the chances of long term upward mobilisation ate reduced to zero.

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...