Financial fair play

[TBLOCKRANGER]

There are loopholes ...........as i say don't panic

My favourite clip of all time from a movie, remember watching it at the cinema as a kid and I still ***s myself.

[QPRDave]

My favourite clip of all time from a movie, remember watching it at the cinema as a kid and I still ***s myself.

Great film/films weren't they?...Really daft one liners like "Hospital????...what is it?.............It's a big building where sick people go, but that's not important right now!"

[W12hoops]

That's the way I'm thinking, I trust them, but it is a pretty big responsibility to turn things round financially, and in no way easy.

If we don't we could find ourselves stuck with whatever squad we have in August 2014, as we would be unable to make any transfers from that point onwards until we are within the FFP constraints.

Exactly, that is why we need to offload people before we can sign. But we've come a long way already with Cisse and Cesar outbound. Both in big wages.

[klonk]

Fella from work was saying that he was at a sports seminar the other day in town, and a guy was giving a presentation and he was using QPR as an example.

He said that we would have to pay out over £2m to every other club in the Championship in fines as it stands.(with our latest reported £61m loss). Also said that we would have a transfer ban imposed on us from Jan2015 if our loss for 2013-2014 season is above the required limit of an £8m loss. This ban would only be withdrawn once we could show that we were in line with meeting the limit, which is £6m the following year.

I know that TF said that this was all under control but seems pretty worrying.

If this is the case we need to start shifting some of these hugely paid wasters asap, before we start getting clobbered.

i'm not sure that's entirely correct. having read http://www.football-league.co.uk/pag...748246,00.html i reckon it all depends on whether we get promoted, relegated or stay in the championship.

if we get promoted (and still make a £61m loss with no expenditure on community scheme or youth development), then we'll have to pay a fine of £49,681,000 which is then shared between the championship teams which met financial fair play rules, but no transfer embargo
if we get relegated, we need to abide by the rules in league 1, which i think is living with player salaries being connected to the clubs income (we'll probably not meet this, so it will result in a transfer embargo but no fine)
if we stay in the championship, it's a transfer embargo from 1 january 2015 until we meet the financial fair play regulations but no fine

we only pay the fine if we get promoted.

[THE CAT]

i'm not sure that's entirely correct. having read http://www.football-league.co.uk/pag...748246,00.html i reckon it all depends on whether we get promoted, relegated or stay in the championship.

if we get promoted (and still make a £61m loss with no expenditure on community scheme or youth development), then we'll have to pay a fine of £49,681,000 which is then shared between the championship teams which met financial fair play rules, but no transfer embargo
if we get relegated, we need to abide by the rules in league 1, which i think is living with player salaries being connected to the clubs income (we'll probably not meet this, so it will result in a transfer embargo but no fine)
if we stay in the championship, it's a transfer embargo from 1 january 2015 until we meet the financial fair play regulations but no fine

we only pay the fine if we get promoted.

Fair enough, didn't realise it was either or.

For me though, it just emphasises how badly we need to get back up this year. The fine is manageable, the embargo would be a lot trickier to deal with, and potentially last a long time

[jmelanie]

I suspect money spent on development won't count (the new training facilities for example). Funds can easily be transferred from one place to another.

[bushcelt1]

.....

is this a loany vid on the hairless side?? b loody fidels will have a field day..

[klonk]

I suspect money spent on development won't count (the new training facilities for example). Funds can easily be transferred from one place to another.

yeah... the following won't count:

investment in youth development
investment in club community scheme
promotion-related bonus payments
any profit generated on the sale of fixed assets (training grounds, stadiums etc)

also worth remembering that accounting rules allow the cost of buying a player to be spread over the length of the players contract - so if we bought a player on a 3-year contract for, say, £3m, we can put £1m through the books for each year of that contract rather than the full £3m at the time of sale.

[klonk]

Fair enough, didn't realise it was either or.

For me though, it just emphasises how badly we need to get back up this year. The fine is manageable, the embargo would be a lot trickier to deal with, and potentially last a long time

the transfer embargo is the one that confuses me a bit. for instance, what happens if we have a transfer embargo and the contract of every goalkeeper at the club expires at the end of that season, before we've managed to sort out the finances. surely, we can't be expected to have a squad with no keeper and equally, it can't end up that the existing keepers are allowed to negotiate outrageous new contracts in the knowledge that we can't buy anyone else. can it?

actually... is the fine that manageable? in the example, we'll have just lost £61m, then we'll have a fine of £50m and still be losing money day-after-day even with the new tv deal.

[QPRDave]

is this a loany vid on the hairless side?? b loody fidels will have a field day..

:laughter_small...

[kron-1664]

FFP is fundamentslly flawed. I am sure that it will not last. If it stayed then the big teams would stay big and the little teams stay little.

[vblockranger]

FFP is fundamentslly flawed. I am sure that it will not last. If it stayed then the big teams would stay big and the little teams stay little.

But thats what the big teams with the most power and the FA want

[jmelanie]

yeah... the following won't count:

investment in youth development
investment in club community scheme
promotion-related bonus payments
any profit generated on the sale of fixed assets (training grounds, stadiums etc)

also worth remembering that accounting rules allow the cost of buying a player to be spread over the length of the players contract - so if we bought a player on a 3-year contract for, say, £3m, we can put £1m through the books for each year of that contract rather than the full £3m at the time of sale.

When you take all that into account, we probably made a profit.

[klonk]

FFP is fundamentslly flawed. I am sure that it will not last. If it stayed then the big teams would stay big and the little teams stay little.

hmmmm....

we should be clear. so far as i understand it, the football league and uefa apply the rules, but so far not the premier league.

my honest opinion is that ffp in the football league should stop people spending money they don't have to cheat the rules ... for example in 2006/07, when we were in danger of relegation until about 3 weeks from the end of the season, i was well annoyed that leeds (who went into admnistration on the morning of the last game of the season, when their relegation was more or less confirmed) had constantly signed premiership-standard players on loan, knowing full well that they couldn't afford the wages. back then, we seemed to be at least making an effort to live within our means. had we gone down and they stayed up because of that, i would've been fuming.

the application of the rule in uefa competitions does seem to favour a monopoly of existing champions league clubs. it would be difficult (but not impossible) for a team like everton to establish themselves as champions leagues regulars, so the existing 4/5 clubs that always make the champions league (and dominate the premier league) will continue to do so.

[jmelanie]

This makes the amount we spent look like peanuts

http://bleacherreport.com/articles/1677381-top-5-premier-league-clubs-by-transfer-spend-so-far-this-summer