FFP Question for those ITK

[West Acton]

If we are facing a £40mil fine for overspending when we last went down (I dont think we will face such a huge fine personally) I am assuming when we drop this time we will once again go down with inflated spending which will again breach the rules which in theory would result in another fine of £40mil or there abouts

So pontentially we looking at a fine of nearly £100mil over a period of two years??

Is my thinking right or am I totally getting wrong end of the stick??

[dogsrrs]

There is said to be case of it's legality being taken befor the European court by the law co that won the Bosman case
stating Football preducices against smaller football clubs right to invest to expand where a small business has every right to spend
to expand .
Hope I've put this this clear enough

[West Acton]

Cheers dogs but are we likely to get fined a second time

[Shania]

It amazes me that people on here are not more interested in this matter.

[THE CAT]

Cheers dogs but are we likely to get fined a second time

Not sure if this is what you mean, but if the fine is included in your operating figures for the year, then I can't see a way that you would ever get out of it, as you would constantly be £30-40m in deficit before you start.

With that in mind I would have thought that FFP would have to exclude the fines from your trading profits.

[surrey_hoop]

It amazes me that people on here are not more interested in this matter.

Perhaps because most fans somewhat naively think that Fernandes will continue to plough millions into the club out of the goodness of his heart.

[dogsrrs]

Cheers dogs but are we likely to get fined a second time

Dont know but they might make it less harsh or defer it untill Brussels has desided at the end of the year

[Kevin Mcleod]

It amazes me that people on here are not more interested in this matter.

Cos most of us think its all a load of old pony shan and nothing will happen.

[Shania]

Ok, SurreyHoop and Kevin Mclleod. Thanks.

[Jimmy Floyd Rabbit]

So as a smallish club we HAVE to pay over the odds for players, plus big contracts, in the hope of staying up, all done in good faith. Yet when we go down we'll then be punished for that? In that case when we go down why aren't we allowed to rip up the players contracts? Not like we wanted to go down is it. Stupid rule.

[klonk]

If we are facing a £40mil fine for overspending when we last went down (I dont think we will face such a huge fine personally) I am assuming when we drop this time we will once again go down with inflated spending which will again breach the rules which in theory would result in another fine of £40mil or there abouts

So pontentially we looking at a fine of nearly £100mil over a period of two years??

Is my thinking right or am I totally getting wrong end of the stick??

it depends on a number of things...

firstly, there's only a fine if the team in question gets promoted... therefore next season (2015-16), if the books for this season (2014-15) show that our loss breaches their limit (£6m, i think), we'll have a transfer embargo placed on us until we post a loss within their tolerance limits.

if we get promoted next season (a big if), then it gets really complicated due to a change in the way that ffp in the championship operates that i've tried to explain in another thread, where the fine is based on the 3 previous years' financial results.

we'll be allowed to post a overall loss of £61m across the 3 years, (£13m per season plus an additional allowance of £22m for the single season in the prem).

i think, in a nutshell, if the football league do succeed in proving that we really made a £69m loss last year, then we would need to make a combined profits of £8m for this season and next season to avoid a fine if we got promoted (or the continuation of a transfer embargo).
if they don't succeed and have to accept that our loss in 2013-14 was £9m, then we could make combined losses for this season and next season of £52m.

[Shepherds Mush]

Not sure if this is what you mean, but if the fine is included in your operating figures for the year, then I can't see a way that you would ever get out of it, as you would constantly be £30-40m in deficit before you start.

With that in mind I would have thought that FFP would have to exclude the fines from your trading profits.

The fine would be an exceptional item and therefore not counted again.

[dsqpr]

Cos most of us think its all a load of old pony shan and nothing will happen.

Something will definitely happen Kevin. The Football League are definitely going to hit us with a massive fine. The question is, what are we going to do about it? Take them to court because FFP is illegal? Pay it? Negotiate? Refuse to pay and get expelled? I don't see any other options.

[Abseits]

You could do worse than look at this site:

http://www.financialfairplay.co.uk/

It'll do your head in and there are no quick and dirty answers or conclusions though. But, if you can be arsed to trawl through it you'll know as much as anyone can possibly know about our plight. One thing, irrespective of FFP you can't escape fact that our owners/directors and "money men" seem to have lost their minds and you do wonder how they ever made a single penny of their wealth???

[klonk]

You could do worse than look at this site:

http://www.financialfairplay.co.uk/

It'll do your head in and there are no quick and dirty answers or conclusions though. But, if you can be arsed to trawl through it you'll know as much as anyone can possibly know about our plight. One thing, irrespective of FFP you can't escape fact that our owners/directors and "money men" seem to have lost their minds and you do wonder how they ever made a single penny of their wealth???

Or... just to repeat what I said above...

next season: no fine. Transfer embargo if our losses this season are higher than £6m
season after: fine if we get promoted next season and the total loss over the 3 seasons (last season, this season and next season) are more than £61m