FFP - Rules/Thoughts etc

[StarBlade]

Hello,

Just thought I'd try and get some chat about FFP and new rules in general.

Personally, I like the idea of the wages/turnover rules, if it helps keeps clubs afloat and sustainable then good.

I do worry how clubs can invest in infrastructure though, I am not 100% familiar with the rules but I've read about maximum £3M loss + £3M owner investment for a maximum of 2 years (I'm happy to be corrected on any of that); which won't help clubs try and make a financial step-up to a new level by building new facilities/academies.

Also, if certain leagues are to adhere to these rules and others aren't, then the idea of playing youth entirely will fall flat on its face when a youngster gets noticed, realising we can "only" pay £5k a week maximum, yet a debt-ridden club in a different league can offer £20k a week.

Finally, is the eventual dream to have the whole of European football use the same rules? Will it work? Will it have a knock on effect on wages, ticket prices, quality (more players going to Asia, USA etc?), international football.

Any thoughts welcome, I'm quite interested in it.

 

[SotonBlade]

I think the idea, in principle is the right one. However, the implementation is all wrong.

The only they way this will have worked is to implement it on a bigger scale. Going division by division, which is the currently that case, is going to distance those clubs even further from the higher divisions. Leagues One and Two from this season, with nothing agreed with the Championship or PL as yet.

This needed to implemented Europe wide for it to have any effect on football as a whole. Also, their are different rules for different divisions. I think League One is 65% of turnover, League Two a bit less than that. Although the Championship has not implemented it yet, they are looking at rules which say they can use 100% of turnover.

It needs to be a level playing field, otherwise how can clubs compete. To me it's just going to create a bigger divide between the haves and the have nots.

 

[SouthEssexBlade]

If a graduated introduction was warranted, it should've been done top down, not bottom up. This would've been fairer and ensured top level compliance.

Doing it this way just leaves clubs cut-off, or totally unable to compete if they do get promoted and I see some flexing of muscle by the big clubs when it comes to their turn and threats of breakaway leagues, leaving UEFA etc. to try and get them exempt from the scheme, leaving those already operating to the rules totally marooned.

I can sort of see slightly different rules for each division being needed, as the income streams and the like are significantly different the higher you go, as are the expenditure, but the big change that the Championship clubs want just seems so much more inflated as to make it almost a different system, and there's hasn't even been discussion about the PL.

A 10% graduation through the divisions would seem reasonable ( Div 2 55%, div 1 65%, Champ 75%, PL 85%) and allows for salary increases that come with any promotion, bearing in mind higher division should also mean more income.

Wouldn't happen though, in fact I think this has a very short shelf life!

 

[Pedro Verde]

I just cant see the top PL clubs agreeing to any kind of salary cap

 

[SotonBlade]

I just cant see the top PL clubs agreeing to any kind of salary cap

I hope they don't. Then they can toddle off with their big friends from across the continent and form a euro super league

 

[s35blade]

its long been my opinon that the economics of football are all wrong. Im sure that in the near future theres going to be an almighty crash. Nearly all clubs run at a lost and are ridden debt. The sad fact is that football lost its soul. When i watch premier league years and see what football was like in the mid and late 90's i just think about how much better and more real it looked. I know this isnt really about FFP but its just my view on the state of football

 

[Patrick Suffaux]

Like others on here I think it is the right idea in principle but if it isnt going to be imposed on clubs in every division then all it becomes is a way of restricting clubs further down the ladder, making it harder for them to climb that ladder and compete.

 

[StarBlade]

I've done a bit of reading on the Football League website, it appears to me that the rules chosen were left to the clubs of each division rather than imposed by the FL or FA. So, if there's any unfairness in the implementation, the clubs have had a hand in the decision.

So the FFP applies to the Championship; basically, clubs can't lose more than £10M this year, and £4M per annum by the end of the settling period. I suppose that then limits the amount they can spend without imposing a direct reference level between turnover and wages. Also, exemptions toward developing the clubs infrastructure and academies are in there, so at least a positive incentive towards that side of the club.

SCMP applies to Leagues 1 and 2; with the % coming down a little the next year or so.

I agree with people on here, the idea is a good one.

Seriously though, will wages and ticket prices reduce? And if not, will there be an increased demand on clubs to charge even more than they currently do to boost their spending power? Would United be better off with 10000 fans paying £50 a game, or 20000 fans paying £20 a game?

 

[Uhtred]

Just cant see teams like Man City agreeing to a salary cap when Theo Walcott has turned down a 5 year deal worth £75,000 a week and they have shown interest.

 

[StarBlade]

Just cant see teams like Man City agreeing to a salary cap when Theo Walcott has turned down a 5 year deal worth £75,000 a week and they have shown interest.

I agree they won't like it, but even UEFA have financial fair play rules that will apply to European competition, so they may win the PL but not even get in the Europa. Or, it'll just be lip service and nothing will change.

Welcome by the way

 

[SotonBlade]

....Or, it'll just be lip service and nothing will change.

That will be it. The big clubs, AC Milan, Madrid, Barca etc will club together and say we're not playing ball, try and exclude us from european competition. If they do, TV money will drop, sponsorship will drop etc etc.

 

[BornOnShorehamStreet]

That will be it. The big clubs, AC Milan, Madrid, Barca etc will club together and say we're not playing ball, try and exclude us from european competition. If they do, TV money will drop, sponsorship will drop etc etc.

Good...

 

[beightonblade]

Sorry it's bollox, fools and money make the world go round.

 

[Bladesman]

Long term it is only good if all clubs adopt it.

As it is unsurprisingly it will make it harder for lower league clubs.

 

[stannyblade]

Will teams be punished if they don't comply? Northern teams yes. But it would be unfair on the fans of pompey, wet spam etc to punish them

 

[stannyblade]

I fail to see just how Portsmouth can fall within these rules.. If they are in admin they have no turnover surely so therefore 65% of nowt is nowt, yet they are allowed to just keep on signing players

 

[Highbury_Blade]

I fail to see just how Portsmouth can fall within these rules.. If they are in admin they have no turnover surely so therefore 65% of nowt is nowt, yet they are allowed to just keep on signing players

calling in the administrators doesn't mean you have no turnover, it just means your income doesn't match your outgoings and you need protection from your creditors.

A company can still recruit during administration (though since the aim of admin is to cut costs, then that's unusual), so they may be signing players on frees/out of contract. Are they paying transfer fees for any of their signings?

 

[stannyblade]

No but they are paying alot higher wages than everyone else (I presume anyway why else would they go there?)

 

[Sothall_Blade]

http://blogs.metro.co.uk/sport/its-longer-last-orders-proud-pompey/

According to this article:- "A condition of the purchase (by the supporters trust) is that, with the assistance of the administrator, player salaries will not exceed £2.65million each year. That includes all performance related pay and taxes and equates to a squad of 20 players earning an average of £2,240 per week."

I think it's a fair assumption that the likes of Williamson, Howard, Buszaky and Mcleod didn't turn down other offers just for the love of Pompey and that they're earning considerably more than £2K a week.

Does that mean that these players and others will have to leave as soon as the new regime takes over? To be replaced by much cheaper options?

Couple that with the effect of their 10 point deduction plunging them overnight into the relegation zone. Does that not give a massive advantage to the teams in the division who've been lucky enough to avoid playing Pompey up to that point?

 

[Selly]

I can't beleive that we are still discussing the fact that Pompey are signing players on too higher wages, not that long after they came out of admin last time and promptly signed Liam Lawremce on £20k/week.

That's a club who didn't pay the st johns ambulance, or the local school the money they owed them (considerably less than £20k) and yet are still allowed with minimal punishment to be playing n the same competition AND DO EXACTLY THE SAME AGAIN.

Football really is fucked up....

 

[stannyblade]

Spot on selly