FFP questions to the club

[CroydonCaptainJack]

"Early bird send ticket money will help hollowhead invest in the squad and we will have those signings ready for preseason."

He is no car salesman, I grant you......
More of a double glazing salesman.

#arthurdaley
#everest

#swisstony
#runningafootballclubisabitlikemakinglovetoabeauti fulwoman

[OldR]

Have we got a set amount to pay each year or is there scope to pay off the fine early if the opportunity arises?

[Stanley]

Thanks for all the questions. Keep them coming if anyone has any more. I'll pass them on over the weekend or Monday and I'm sure some of them will be answered.

[dogsrrs]

Ex crystal palace owner Mr Parish said we didn't have to except the January transfer embargo if so why did we ? And if so how did the F A arrive at that ?

[klonk]

same here, hoos is good with words but rarely clarifies anything. he just spins words around and gradually moves away from the question.
if there was bad news i'd rather just know about it so we know where we're at

i think it's important that hoos can explain things in a clear understandable way... there's a difference between cash budgets (how something is financed) and their accounting treatments (how they are recorded in financial accounts). i'm happy enough that there is no direct accounting impact from the ffp fine, but i am unclear how the fine will be financed. so my question is...

- how will the payment of the ffp fine be financed?
- if the fine is financed through shareholder loans, will these be interest-free loans (rather than 10-25% interest loans)?
- will there be knock-on effects to the cash budgets available for day-to-day operations at the club?

i would also want to understand the football league's position on the high interest rate shareholder loans that are recorded in the accounts (2016-17 £6.1m)...

- do these interest costs count towards the club's ffp expenditure?
- if they do count, since these charges are completely within the board's control, why are the interest rates not lower and nearer to open-market rates?
- given that the efl forced the club to convert £21m of debt to shares (to make it financially sustainable), did the efl do anything about these interest charges (such as capping the interest rate) as part of the settlement?

[SpongeParr]

How much are we 'allowed' to lose yearly? And could it be we lose 26m one year, 13 the next and then need to lose 0 in the 3rd and we will be okay and not be fined?

*Based on my understanding that we can lose an average 13m per year over a rolling 3 years.

[1973 ranger]

Was FFP an excuse or the reason we never spent any money from recent player sales and how bad are we as a club right now? Especially as the parachument payments are over.

[Undecided]

We've heard that we can't spend because of S&P constraints. The same rules apparently bar wealthy owners from bankrolling a club because it's not a liquidity issue, but a question of "profitability" (or limiting losses). How is it then that certain clubs seem to be able to spend with impunity? Are there lessons to be learned by the club?

[Buzzit]

Will give my unqualified answers to some of the questions above (perhaps you can ask the board to deny them)

1) FFP fine has been financed by interest baring loans from the shareholders, with the yearly interest amount being converted into additional shares (meaning the loans till exists, keeps charging interest, and remains until paid back)
2) FFP breach is calculated over 3 years using last 2 years completed accounts and a forecast for the current year (has to be submitted by 1March) averaging at 13M loss per year
3) We are close to breaching FFP for the current season hence why so many players let go in the off (Im surprised that more work is not been done to encourage supporters to attend matches / ticket pricing)
4) the board will do everything they can to stay in the Championship (without breaching FFP)
5) FFP is calculated based on income and expenditure.. the owners putting money into the club is not either of these things and therefore is not counted under FFP
6) The board will claim (as they have done for a while now) that the club is ultimately unsustainable unless it moves to a new stadium which will also enable decent ongoing mixed use by the local community on non playing days, giving extra income to the club etc etc.. in this they are probably correct
7) It is extremely unlikely that the current owners will again try to buy their way into the premiership (but new owners might try if they have plenty of spare cash)

Again nothing amazingly positive and progressive will happen without a new stadium being built.. so in many respects the club is likely to drift until this happens
You can use the above for bs bingo.. see if you get a house

[Stanley]

Thanks for all the questions. They've now been submitted, so I'm sure we'll see some of them addressed by the CEO this week. Will post up the Q&A video when it's published.