Happy Fox Posted 5 November 2013 Posted 5 November 2013 http://www.telegraph.co.uk/sport/football/teams/blackburn-rovers/10427911/Blackburn-Rovers-could-face-a-Fair-Play-Tax-fine-in-excess-of-10m-if-they-win-promotion-to-Premier-League.html Blackburn Rovers could face a Fair Play Tax fine in excess of £10m if they win promotion to the Premier League this season after reporting pre-tax losses of £36.5m for the year ending June 30, 2013. The Ewood Park club, relegated from the Premier League at the end of the 2011-12 campaign, have revealed the true cost of relegation to the Football League in their accounts, which highlight a stark drop of £23.2m in lost television revenue alone since dropping out of the top flight. Having reported a pre-tax profit of £4.3m twelve months ago, the loss of media revenue has seen the Rovers wage bill leap to 136.1 per cent of the club’s turnover during a campaign when average home attendances plunged by 7,500 to just under 15,000. But with new Financial Fair Play regulations coming into force in the Football League this season, Blackburn face stiff penalties if they post a loss in excess of £8m for the current financial year. Blackburn will be hit by a Football League transfer embargo from Jan 1, 2015, if they report losses higher than £8m and fail to secure promotion. Related Articles Blackpool and Blackburn charged by FA 31 Oct 2013 Brunei club signs ex-Blackburn manager Kean 22 Oct 2013 Boyce seals late win for Latics 06 Oct 2013 How to improve your fitness in the gym Santander However, if Gary Bowyer’s team return to the Premier League – the club are currently in ninth position in the Championship, four point adrift of the play-offs – they will be subject to the Fair Play Tax which would have seen them hit with a penalty charge of £18.69m following promotion if the regulations had been in place last season. Clubs face a charge of one per cent on the first £100,000 beyond the £8m loss ceiling, with a punitive 100 per cent penalty for losses of £10m of more over the £8m figure. In a statement within the club’s accounts, which were filed to Companies House at the weekend, Blackburn managing director Derek Shaw admitted that meeting the FFP regulations will be ’challenging.’ “The club’s owners and management team remain determined to get back to the Premier League,†Shaw said. “Although we need to be competitive, we have to aim to be within the Financial Fair Play regulations. “Despite an overhaul of the playing squad during the summer, we still have some big wage earners at the club and we are working hard to put our house in order. “Although promotion remains the key aim, achieving this while also trying to meet Financial Fair Play requirements will be a challenging task for all football clubs. "Business risks identified include reduced income from parachute payments in 2014-15 and 2015-16 and the potential sanction from non compliance with the FFP rules.†Blackburn’s owners, the Indian poultry processors Venky’s, have underlined their commitment to the club within the accounts. The club’s overall debt of £54.5m consists of a £36.1m interest-free loan from Venky’s, plus a £13.7m loan from the State Bank of India, which must be repaid within 12 months. Having paid compensation packages to three managers who lost their jobs lost last season – Steve Kean, Henning Berg and Michael Appleton – Blackburn’s losses are unlikely to include such one-off costs in the current financial year. But the drop in commercial, media and gate revenue could see the club force to sell £8m club record signing Jordan Rhodes in order to held reduce losses.
Dan Posted 5 November 2013 Posted 5 November 2013 Until owners start paying for this rather than fans and players, then it won't end.
Stadt Posted 5 November 2013 Posted 5 November 2013 Surely if clubs are financially in the shit but get fined then it's going to advance an already downwards spiral?
MooseBreath Posted 5 November 2013 Posted 5 November 2013 Surely if clubs are financially in the shit but get fined then it's going to advance an already downwards spiral? They will only get fined if they get promoted by which point they will have plenty of premiership tv money with which to pay a fine
davieG Posted 5 November 2013 Posted 5 November 2013 Surely if clubs are financially in the shit but get fined then it's going to advance an already downwards spiral? True, probably not as much as forced relegation would.
Stadt Posted 5 November 2013 Posted 5 November 2013 They will only get fined if they get promoted by which point they will have plenty of premiership tv money with which to pay a fineThanks, I didn't read it properly.FFP is a joke, the concept was there but the way it has been handled is shambolic.
foxoffderby Posted 5 November 2013 Posted 5 November 2013 The owners there seem to be playing Russian Roulette with the football club. I hope our club with the management signings in the summer whose job was to deal soley with FFP seem more responsible and prudent.
Jace Posted 5 November 2013 Posted 5 November 2013 All it will take is the first legal lawsuit to appeal and challenge FFP and hopefully the whole crap idea will fold. More likely to ruin more clubs than it will help. It might stop the richer clubs spending but the poorer clubs who can't afford any fine or embargo will be in financial crisis.
Itsthejoeker Posted 5 November 2013 Posted 5 November 2013 Wait, so they make losses, and they get fined? Logical solution...
Webbo Posted 5 November 2013 Posted 5 November 2013 If you've ever been gypped by a company going out of business you may have more sympathy for what the league are trying to achieve.
Alexikokopops Posted 5 November 2013 Posted 5 November 2013 Wait, so they make losses, and they get fined? Logical solution... I'm turning to Moose... They will only get fined if they get promoted by which point they will have plenty of premiership tv money with which to pay a fine
Alf Bentley Posted 8 November 2013 Posted 8 November 2013 £10 million is poultry sum. Indeed. Nothing to crow about. Chicken feed, if you ask me. Now, now, don't egg me on to greater eggcess...
Renart Posted 8 November 2013 Posted 8 November 2013 £10 million is poultry sum. Indeed. Nothing to crow about. Chicken feed, if you ask me. Now, now, don't egg me on to greater eggcess... It only comes into affect if they fall fowl of ffp. I think they will be made an eggsample of. Serves them right for shelling out for all those players and trying to feather their own nest. It really is a yolk!
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