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GingerrrFox

Seems relegated teams like qpr aren't exempt from FFP?

By GingerrrFox, in General Football and Sport

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Hollism

Hollism

Posted
Posted

Far as I know, they aren't exempt. But they get parachute payments after being relegated that are so huge that it's effectively impossible for them to make a loss.

Lukey Boi

Lukey Boi

Posted
Posted
Shows how well NP has done since Sven's era
 
Queens Park Rangers are on course to be hit with the biggest fine in British football history, which, in a worse-case scenario, could top £60 million.

Ironically, it will be imposed because of the amount of money they are losing — believed to be a huge £80m for last season — and will compound their financial troubles, perhaps sparking meltdown.

They have racked up big debts and massive annual losses largely through signing dozens of players on huge contracts in recent seasons, including Chris Samba, Park Ji-Sung, Julio Cesar, Jermaine Jenas, Loic Remy and others, most of whom remain on the club’s books, draining their resources with contracts worth up to £100,000 a week.

 
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Big money signing: Jermaine Jenas was signed by Harry Redknapp in January 2013 from Tottenham on 18-month contract worth £50,000 a week

If QPR are promoted this season, the fine will be levied in January 2015 by the Football League under their new Financial Fair Play (FFP) rules, which will see overspending clubs ‘taxed’ on their losses. Rangers are currently favourites to go up to the Premier League from the Championship this season. They could avoid a fine — or at least postpone it — if they fail to get promoted. In that case, they will be hit with a lengthy transfer embargo.

 

The mathematics are complicated, but in broad terms, Championship clubs will pay a £1 fine for every £1 they lose over £18m in the 2013-14 financial year.

article-2508505-196ED1CD00000578-206_306

Short stay: Chris Samba spent six months at QPR to July 2013 on £100,000 a week and his 10 Premier League games cost £2.5m in wages

Sources familiar with QPR’s financial situation have told The Mail on Sunday that the club will post losses for 2012-13 of about £80m. The club are not obliged to publish those accounts until next spring and have declined to comment.

Rangers are two-thirds owned by Malaysian businessman Tony  Fernandes and one-third by the  Mittal family. Fernandes’s majority shareholding gives him ultimate power and it is he who sanctioned the hiring of Mark Hughes and then Harry Redknapp, allowing both to sign large groups of players.

It is expected that the club will record another massive deficit for the current season, and it is the losses in 2013-14 that will be measured to calculate any fine.

If QPR’s losses for the season are £80m, the fine will be about £62m. That would equate to roughly all of QPR’s Premier League income (if they are promoted) for next season. Even if 2013-14 losses are as ‘low’ as £60m, a fine of more than £40m would follow.

‘This is the first season in which clubs will ultimately face sanctions [for over-spending],’ a Football League spokesman told The Mail on Sunday. ‘Clubs have to submit their accounts for 2013-14 to us by December 1, 2014, with sanctions levied early in 2015. If a club being sanctioned are in the Premier League by then, the fine will need to be paid.’

QPR’s accounts for 2012-13, in which they were relegated from the Premier League, have not been made public, nor will the club confirm when they will be. Asked to comment on their expected losses last season and this season, and on the potentially destructive fines, a Loftus Road spokesman said: ‘The club will be making no comment on [these] matters at this time.’

 
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Expensive hands: Julio Cesar signed from Inter Milan on four-year deal in summer 2012 he is out of favour now, but earning £90,000 a week

The Mail on Sunday can reveal that the Football League plan to donate fines levied under their FFP rules to charity. It had previously been expected that fines paid by overspending clubs would be shared among clubs who stayed within the rules and did not lose huge amounts while trying to ‘buy’ success. But a senior FL source says giving the fines to charity is now the preferred option ‘for a number of political reasons’.

The last publicly available accounts for QPR relate to the 2011-12 season, when they made a loss of £22.6m, had debts of £89m and a wage bill that had almost doubled year-on-year from £29.7m to £58.4m.

 
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Signing of intent: Park Ji-Sung moved from Manchester United in July 2012 for £2m he is now on loan at PSV with QPR paying most of his £70,000-a-week wage

That huge wage bill was before they signed high-earning players like Samba, Park, Rob Green, Junior Hoilett, Ryan Nelsen, Jose Bosingwa, Julio Cesar, Stephane Mbia, Remy and Jenas.

The wage bill for QPR’s relegation season is expected to be about £90m, or, by itself, about 150 per cent of the club’s total income of about £65m. A ‘sensible’ wage ratio is closer to 50 per cent of turnover. They have cut some costs since last season, releasing or selling 11 players in the summer including Samba, Bosingwa and Anton Ferdinand. 

But they also signed eight new players on permanent deals and loaned three others including Benoit Assou-Ekotto from Tottenham and Niko Kranjcar from Dynamo Kiev.

QPR’s income will also have plunged between last season in the Premier League and this season in the Championship, largely through reduction in TV money.

Ashley

Ashley

Posted
Posted

Really does put things into perspective. Remember that thread I created on here Thanking Pearson should he go? Some people don't realise what a great job he has done.

Anyway. Sven isn't to blame our chief executives are, they are the money men when it comes to transfer and contracts not Sven. If you think he is you've been playing to much Football Manager.

Bilo

Bilo

Posted
Posted

Far as I know, they aren't exempt. But they get parachute payments after being relegated that are so huge that it's effectively impossible for them to make a loss.

 

The problem is their outgoings are just as huge. Of all the players they shipped out, only Samba and Mackie commanded a fee. Also, any wages they got off the books have been cancelled out by the large wage packets of players like Austin, Simpson, Dunne, Phillips and Henry.

 

Their spending was equivalent to a top six Premier League side when they got promoted and they've barely slowed down since, even parachute payments can't compensate for that kind of stupidity. 

yorkie1999

yorkie1999

Posted
Posted

What annoys me with ftp is that 60% OF premiership teams can only survive with the money given to them by sky. What is the difference between us having wealthy owners who are basically being forced to not spend on something they have bought and own and sky, who are allowed to put money into the premiership, which they also have bought and basically own ie take the sky money out of the premiership and it would not survive in it's present state.

sylofox

sylofox

Posted
Posted

What annoys me with ftp is that 60% OF premiership teams can only survive with the money given to them by sky. What is the difference between us having wealthy owners who are basically being forced to not spend on something they have bought and own and sky, who are allowed to put money into the premiership, which they also have bought and basically own ie take the sky money out of the premiership and it would not survive in it's present state.

Cos sky is sponsorship not money being loan by rich owners.

sylofox

sylofox

Posted
Posted

EDIT: Just looked at link!

 

Sorry.

 

Certainly they do need to get their house in order.

 

Mass clear out in January likely..

Will not help them they owe too much to start.

Also as clubs know they are in shite street they won't pay anywhere near the price for the players.

Also why would someone on 100k wan't to leave and how many clubs will top there overpaid wages.

 

There fvcked lol lol lol

sylofox

sylofox

Posted
Posted

Lets hope Pearson is offered a new contract regardless of what happens this season

Not that I want Pearson out at all but more to the point.

 

Lets hope our stupid owners have learnt a lesson.

 

What ever anyone say's or who they blame our owners allowed us to get in the mess we are in.

Danizen

Danizen

Posted
Posted

What annoys me with ftp is that 60% OF premiership teams can only survive with the money given to them by sky. What is the difference between us having wealthy owners who are basically being forced to not spend on something they have bought and own and sky, who are allowed to put money into the premiership, which they also have bought and basically own ie take the sky money out of the premiership and it would not survive in it's present state.

Sky pay billions of pounds because the level of interest is so high. FFP is designed to stop Championship clubs paying Premier League wages and facing financial ruin. That's the difference.

I think parachute payments are really unfair and a better way to deal with the massive deficit that relegation causes would be to force every Premier League club to submit a detailed contingency plan in the event that they are relegated, use the money that would have gone to parachute payments to set up a hardship fund but impose a points penalty on clubs that take more than, say, £15m out of this fund.

Bilo

Bilo

Posted
Posted

Will not help them they owe too much to start.

Also as clubs know they are in shite street they won't pay anywhere near the price for the players.

Also why would someone on 100k wan't to leave and how many clubs will top there overpaid wages.

 

There fvcked lol lol lol

 

It certainly reads that they're damned if they do and damned if they don't.

If they get promoted, a £60m fine awaits and they'll have a bang average Premier League squad with no cash to boost it. Relegation fodder.

If they fail to get promoted, they'll continue losing money hand over fist whilst the parachute payments get smaller and smaller. 

Jace

Jace

Posted
Posted

Any smart arse on the forum knows why it says over £18 million losses I thought it was meant to be £8 million?

Bilo

Bilo

Posted
Posted

Sven never got us 2 points of the top of the league though.

 

He also never handed out £100,000 a week contracts in the Championship.

 

Sven spent like a maniac, but QPR are on a whole other level.

Jace

Jace

Posted
Posted

There is talk that FFP wont be upheld as it breaks EU fair competition law so after the first club appeals their own decision and wins it will all be thrown out completely shame no one has any idea what to expect

foxfanazer

foxfanazer

Posted
Posted

Won't happen as they will be promoted this season lazy journalism at best.

Could you tell us where Leicester are going to finish please? Would save us a lot of angst
suffolk fox

suffolk fox

Posted
Posted

I'm so glad someone knows the outcome

Think about it Ffp is truly bollox they will be already getting parachute payments from the Pl as they were relegated last season. They will be promoted this season get the cash windfall again about 60 million plus tv revenue etc so it will not realistically effect them. It may do if they fail to get promotion but that aint gonna happen.

The only teams ffp will punish will be those not in the Pl. That is why under these silly rules the rich will get richer and the wannabees poorer.

Bilo

Bilo

Posted
Posted

Won't happen as they will be promoted this season lazy journalism at best.

 

They'll have to pay the fine if they are promoted, they'll be hit with a transfer embargo if they don't.

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