Financial protocol / restrictions - anyone explain?

[highpeakblade]

I'm seeing these threads pop up again of how we need to splash out in the market, especially more so now HRH has arrived with his wallet full of crisp bank notes but what about the financial fair play protocol or whatever it is called? This still prevents us from signing silly players and we are still very much capped on our wage bill are we not?

Am I missing something here? We are still heavily regulated as to what we spend aren't we?

Anyone care to explain because at the minute if we are still regulated by this I don't see how we can sign all of these players?

 

[sheffielder]

You can spend 65% of income into the club on players over 21. I am sure you can do the math is the Prince puts in £1m for example.

 

[highpeakblade]

You can spend 65% of income into the club on players over 21. I am sure you can do the math is the Prince puts in £1m for example.

No worries mate, cheers for the explanation.,....

I just didn't know the ins and outs of how it works, not clued up on all this accounts stuff! I knew percentages of income were involved but I didn't know whether investment from owners counted? Probably sounds stupid but I thought it could have been a percentage of profits generated by the football club, you know to show self sufficiency etc........as obviously these rules have been brought in to ensure clubs are living within their own means and not going all Portsmouth.

 

[sheffielder]

No worries mate, cheers for the explanation.,....

I just didn't know the ins and outs of how it works, not clued up on all this accounts stuff! I knew percentages of income were involved but I didn't know whether investment from owners counted? Probably sounds stupid but I thought it could have been a percentage of profits generated by the football club, you know to show self sufficiency etc........as obviously these rules have been brought in to ensure clubs are living within their own means and not going all Portsmouth.

I am not 100% myself, however that's how it has been explained to me. The Prince's money would be counted as investment and as long as the money is in the club then it can be spent. I don't think you can spend what's not in the club.

 

[WhiteHawk]

Isn't it 65% of the previous years turnover? IE, we can't spend the princes money this season.

Not sure if I'm correct in saying that we can't use the princes money at all unless we agree some sort of sponsorship like Man City have.

 

[alcoblade]

You can spend a percentage of what's really put in. You can't borrow beyond your means, that's what's changed.

I'm not sure about the delay between generating the turnover and being able to draw on it. That's the problem. We might want a clear out, but nobody will want our players. We need to stay up, then do a real rebuild in the summer when just about the lot can go. Fortunately, we don't have to fear losing anyone anymore.

UTB

 

[Darren]

You can spend a percentage of what's really put in. You can't borrow beyond your means, that's what's changed.

I'm not sure about the delay between generating the turnover and being able to draw on it. That's the problem. We might want a clear out, but nobody will want our players. We need to stay up, then do a real rebuild in the summer when just about the lot can go. Fortunately, we don't have to fear losing anyone anymore.

UTB

Indeed, if the rules permit and if the Prince really is loaded and committed, you would not think it would cost too much (relative to his wealth) to pay off some of the dross and buy 4-5 of the best players in Division 3 (given that, apart from Wolves, we can pay them much more than any other third division team).

 

[WhiteHawk]

Just what I was going to say Darren. Pay off all of the shit and just get rid of them then sign some players that are actually decent.

 

[alcoblade]

Just what I was going to say Darren. Pay off all of the shit and just get rid of them then sign some players that are actually decent.

If we paid off all the shit we couldn't field an eleven. We need to buy first.



UTB

 

[sheffielder]

If we paid off all the shit we couldn't field an eleven. We need to buy first.



UTB

I think you could quite easily get rid of Howard, McMahon, Collins, Doyle, Flynn, Porter and king and still put out an 11 which isn't weaker than what we are now. The real need is to find an 11 that gels

 

[Gibbo89]

Think they set a budget at the beginning of the season based on previous years turnover but then monitor that and our expenditure as the season progresses. So provided the League believe the figures we provide them with they will either increase or reduce our budget.