These are the following new rules which are due to come in 2013:
Here is an example of how the new transfer rules will affect Chelsea:
http://swissramble.blogspot.com/2011/02/chelseas-financial-fair-play-challenge.html
Now although the rules come in 2013, they actually look at the previous two years account, as to what they can spend in 2013. Therefore clubs have to look already look at these new rules, as what they spend in the next two summers will affect what they can spend in the future.
The new rules look at what clubs have earned in revenue as a club (including sponsorship, ticket sales, merchandise, player sales etc) minus what they have spent as a club (including wages, transfer fees and all other outputs) - and what clubs earn they can then spend.
This is obviosuly to curb the Man City type spending we have seen in recent years and previosuly with Chelsea, who has spend well above their means as a club.... despite not above the means of the owners.
Chelsea and Man City have an extra problem. By 2013 the wages to turnover ratio for clubs need to be below 70% - currently Chelsea's wages to turnover ratio is 82% as shown on the above link and Man City's is 107%. Therefore they are going to have to reduce this figure by 2013, but how do Man City do this when other clubs won't pay the wages they have given to players such as Milner, Barry, Toure, Lescott etc and they refuse to sell these players to other PRemiership clubs - judging what they did to Bellamy. Even if City decide to pay of these players, that will come out of the clubs outputs, which will reduce what they can spend in the future, massively.
Now luckily for us our turnover to wages ratio is fine. It should look a lot better once we get rid of Cole, Jovanovic (90k a week), Maxi (80k a week), Poulsen, Konchesky and others.
I think we need to look at this window as an opportunity to set us up for long term success:
Therefore we'd be better trimming the wage bill, reducing our uneccesary outputs on players offering little. If we sign one or two top players who can sell a lot of shirts (Aguero, Hazard, Bale, Modric etc), then not only will it improve us significantly on the pitch it will help the growth off it, with the extra merchandise sold - which should enable us to spend more in the future.
This is the last time clubs can spend big before being restricted. As stated above, I believe Man City and to a lesser extent Chelsea are already restricted given their wages to turnover ratio.
FSG need to back Dalglish to not only bring back success for the short term, but to enable our club to continue to spend big in the future as we need extra revenue to compete and without a stadium, I think the only way that is going to happen is signing top players who can help us grow off the field, but also making us siccessful on it... as Champs League qualification is going to be essential with these new rules coming in. I get the impression FSG understand all these new conditions though given they are already trying to make us grow off the field with getting Le Bron on board.
But do you think these restrictions will curb Man City's spending this summer? Will it mean we spend big this summer? What would you do if you were FSG?
Here is an example of how the new transfer rules will affect Chelsea:
http://swissramble.blogspot.com/2011/02/chelseas-financial-fair-play-challenge.html
Now although the rules come in 2013, they actually look at the previous two years account, as to what they can spend in 2013. Therefore clubs have to look already look at these new rules, as what they spend in the next two summers will affect what they can spend in the future.
The new rules look at what clubs have earned in revenue as a club (including sponsorship, ticket sales, merchandise, player sales etc) minus what they have spent as a club (including wages, transfer fees and all other outputs) - and what clubs earn they can then spend.
This is obviosuly to curb the Man City type spending we have seen in recent years and previosuly with Chelsea, who has spend well above their means as a club.... despite not above the means of the owners.
Chelsea and Man City have an extra problem. By 2013 the wages to turnover ratio for clubs need to be below 70% - currently Chelsea's wages to turnover ratio is 82% as shown on the above link and Man City's is 107%. Therefore they are going to have to reduce this figure by 2013, but how do Man City do this when other clubs won't pay the wages they have given to players such as Milner, Barry, Toure, Lescott etc and they refuse to sell these players to other PRemiership clubs - judging what they did to Bellamy. Even if City decide to pay of these players, that will come out of the clubs outputs, which will reduce what they can spend in the future, massively.
Now luckily for us our turnover to wages ratio is fine. It should look a lot better once we get rid of Cole, Jovanovic (90k a week), Maxi (80k a week), Poulsen, Konchesky and others.
I think we need to look at this window as an opportunity to set us up for long term success:
Therefore we'd be better trimming the wage bill, reducing our uneccesary outputs on players offering little. If we sign one or two top players who can sell a lot of shirts (Aguero, Hazard, Bale, Modric etc), then not only will it improve us significantly on the pitch it will help the growth off it, with the extra merchandise sold - which should enable us to spend more in the future.
This is the last time clubs can spend big before being restricted. As stated above, I believe Man City and to a lesser extent Chelsea are already restricted given their wages to turnover ratio.
FSG need to back Dalglish to not only bring back success for the short term, but to enable our club to continue to spend big in the future as we need extra revenue to compete and without a stadium, I think the only way that is going to happen is signing top players who can help us grow off the field, but also making us siccessful on it... as Champs League qualification is going to be essential with these new rules coming in. I get the impression FSG understand all these new conditions though given they are already trying to make us grow off the field with getting Le Bron on board.
But do you think these restrictions will curb Man City's spending this summer? Will it mean we spend big this summer? What would you do if you were FSG?
