Make it or Break it for some teams, surely?

[hal9thou]

Newcastle are flush in profit now. Another 30 million from Sissoko

compared to Villa Wolves and Derby they've done alright. Sissoko is a massive punt, he can get disinterested very fast.

[jmelanie]

The amount of money spent in this transfer period is frightening. I know Leicester did really well last year in winning the league, but I can't really see that happening again. There will be at most half a dozen teams competing in the premiership for the top positions and the rest of the division will be fighting for survival. This can't be good for football and I think in the end the premier league will become uninteresting.

[dave58]

Villa have spent CRAZY amounts and to my knowledge haven't sold half as well as NUFC who have also spent a small fortune.

Not to forget, Derby, Norwich, Shef Weds & Brighton who again have chucked serious money at this league. If they dont go up this year, which they all cant. SURELY some if not all will be facing FFP like QPR who are at least trying to be less crazy..

Personally have no idea what the FFP rules are given the amount of cash Villa and Newcastle are splashing, but should imagine it is based on your yearly revenue etc.

I think its a load of barrlacks regardless, but still it keeps clubs on a right spending structure I guess.

Not sure anyone understands FFP properly don't understand how some clubs get away with it at the higher level Man City Chelsea Bournemouth,
Derby Villa Newcastle
and our little dispute still rumbles on with the lawyers with no one knowing whats going on

[West Acton]

Not sure anyone understands FFP properly don't understand how some clubs get away with it at the higher level Man City Chelsea Bournemouth,
Derby Villa Newcastle
and our little dispute still rumbles on with the lawyers with no one knowing whats going on

Bournemouth if they ever drop face fine like us

[Norths]

Newcastle are flush in profit now. Another 30 million from Sissoko

Just over £70m from selling Jaanmat, Wijnaldum and Sissoko.

[Ginger Ninja]

I would love it, absolutely love it, if Villa and Derby fail.

[klonk]

Hasn't it been changed to the last three year's accounts?

yes, it has and the amount that clubs are allowed to overspend has increased and the punishments are not as punitive as they previously were.

Bournemouth if they ever drop face fine like us

to be fair to bournemouth, as far as i know (and according to their accounts), they paid their fine without any argument - i'm not sure that the same thing applies to plucky leicester (not clear whether some of the questions about their accounts got resolved).

Not sure anyone understands FFP properly don't understand how some clubs get away with it at the higher level Man City Chelsea Bournemouth,
Derby Villa Newcastle
and our little dispute still rumbles on with the lawyers with no one knowing whats going on

it's important to understand that different rules have applied to different competitions - the rules for the football league were quite strict and restrictive, for the premier league much less so (losses can be much higher).

it's also important to understand how accounts deal with player purchases - virtually all accounts spread the cost of investments (machinery, buildings etc) over the time that they will be used, so that potential investors in businesses aren't tricked into thinking that businesses aren't more/less profitable due to recent investment activity - so, if company buys a machine for
£10m that it will use for 5 years, it will charge £2m to the profit and loss account in the first year and hold the remaining cost on its balance sheet. the same principle usually applies to player purchases, buy a player for £10m on a 5 year contract and then charge £2m per year to the profit and loss account (which is what ffp is based on) for each year - the transfer fee isn't charged all in one go.

but when a club sells a player, the fee received is posted to the profit and loss as income and the remaining balance sheet value of the player is posted to the profit and loss account as the cost price of the sale. so using the £10m 5-year contract player example, if the player is sold for £1m after 3 years then how that player's purchase/sale costs are shown over the 3 years are as follows:

year 1: £2m (share of purchase cost)
year 2: £2m (share of purchase cost)
year 3: £2m (share of purchase cost) + £3m (difference between income of £1m and remaining balance sheet value of £4m) = £5m

rather than:

year 1: £10m
year 2: £0
year 3: -£1m

the net position over 3 years is the same £9m, but the top position gives a fairer view of how the club is actually operating. if villa don't get promoted and can't recoup a decent share of what they've spent, then yes, they are proper in trouble.

[Shepherds Mush]

Barnsley have been shrewd in this window signing Bradshaw and Armstrong. Real dark horses IMO.

Would love to see Villa and Newcastle fail miserably.

[CroydonCaptainJack]

Just to give some context, Newcastles window doesn't look quite as good given they spent about £90m last season.

[maidstone_hoop]

Bournemouth settled their FFP dispute sometime last year.

Our dispute rumbles on because FFP are trying to enforce FFP rules that were in place when we broke them a few years back. However, subsequently they have changed to be a lot more lenient especially to the clubs that get relegated from the prem.

As it stands Derby, Wolves possibly villa are the one that seem to have really pushed their limits. I would of added Bristol City in the mix until they sold Kodija for that ridiculous amount.

[Kirill]

Seriously like to see Villa fail. Crazy spending.

And they will fail.
You just know they will.

[Ginger Ninja]

And they will fail.
You just know they will.

And I will laugh and laugh.

[CroydonCaptainJack]

And they will fail.
You just know they will.

Fingers crossed mate.

[hal9thou]

it's also important to understand how accounts deal with player purchases - virtually all accounts spread the cost of investments .

great post, but wasn't FFP mk1 designed to stop that? Also your post highlights exactly why lawyers rubbed their hands together at the thought of challenging, penalising clubs lower down the order to a relatively greater extent was seen by my learned friends as not being very equitable....... I'm pretty sure a robust legal challenge would have a decent chance, at least I can see counsel thinking that.

[FACTS]

FFP is going to be gone soon right? I doubt these clubs care.

Re. Villa - they had to take a gamble or they'd have ended up like Leeds. I don't want to see them promoted but it would be a shame for them to die.