FFP, FFS

[Mamma Mia]

So does anyone actually know where we stand within the FFP rules?

I think @Rosco has mentioned that the owners can't put much more money in this season without taking a big gamble on getting in to the CL.
That seems to make sense to me and explains the rumours of loan deals, but I have not bothered to look at the rules and numbers in any detail.

It would be nice to understand our position and avoid the daily shouts of 'we're skint' and accusing FSG of a lack of ambition.

 

[Rosco]

The time lag with accounting and the absence of any accurate reporting make it guesswork at best.

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

Under the FFP rules, total losses made during the 2011/12 & 2012/13 seasons combined had to be kept below 5m euros (£4.1m) unless the owner injected equity (i.e. hard cash) to cover the loss. Where the owner injected equity, clubs could record total losses after exclusions* of up to 45m euros. The issue for both clubs is that their accounts make it clear that they exceeded the 5m euro loss but have not injected the equity.

 

[StevieM]

Fine only day to make it "fair" is to have a flat cap on expenditure not based on income.

It'll never happen.

 

[Rosco]

Our loss in 2012 was 40m, I don't think the account covering last season are public yet.

So there's a lot of guesswork involved, in the 12/13 accounts there should be an uptick in money because of the warrior deal, I don't think the TV increases kicked in until this year.

We also don't know what exemptions we will be able to claim - youth development costs etc don't count.

But when you see our first year puts us at minus 40 before the exemptions and you know -45 is the limit then you'd have to have some concern .

 

[Mamma Mia]

Thanks Ross. Could that also explain why 10m p/a deals like the Dunkin' one are being spoken of as necessary to enable us to spend?

It seems likely that we will try to get a decent loan deal or two to add to the squad in the hope we can make top 4. The FFP periods are rolling 3 years right? If so, we may be able to spend big again in the summer.

 

[Rosco]

Thanks Ross. Could that also explain why 10m p/a deals like the Dunkin' one are being spoken of as necessary to enable us to spend?

It seems likely that we will try to get a decent loan deal or two to add to the squad in the hope we can make top 4. The FFP periods are rolling 3 years right? If so, we may be able to spend big again in the summer.

Commercial deals are necessary but so is some perspective and truth about them.

 

[tony]

According to Deloittes this morning our revenue was up 9% in 2012/13. Commercial revenue is increasingly important although the headline figures are misleading as they usually are performance related and include potential bonuses for winning the pl or cl fa cup etc. If we qualify for the cl next season our income will be massively enhanced from the 2012/13 figures as the new sky tv deal kicks in and also the btsports champions league tv deal will nearly double the uk clubs revenue from that competition. From about £209m for 2012/13 we could be talking about £300+ for 2014/5 if we qualify. If wages have been controlled as they have been purported to I can't see why we should be worried about ffp.