Financial Fair Play and how it will affect the end game

[The Yellow Pimpernel 0]

Sorry if theres already another thread, but I cant be arsed to trawl through.

With the UEFA Financial Fair Play now caluclauating against all clubs, with penalties being applicable from the seaon after next i.e 2013 -14, what will be the remifications for us compared to other clubs? 

Assuming we stay in the Permier League after this coming season, how will affect our departed manager to a club with 100million+ of debt and counting, compared to ourselves who expect to be debt free at the end of next season?  The season after next is the key, dependant on us staying up this coming season.

The key points as I understand are:

3 years to break even, starting from 2011 - 12 (last season) - NCFC are well on target, how many others are?

Till the year 2014 clubs can only accrue losses of 39.5m - NCFC again are not troubled by this.

Owners cannot bail out clus with personal wealth - Oh dear for certain midland clubs spending beyon there means (sorry I''m bitter really)

I think we safely meet all the requirements and more with a minimum income of 40m+ next season, but the impact on the top/ bigger teams is going to be massive. 

Why are they still giving out big contracts that are unsustainable under the new rules?  100 - 200k per week just doesnt stack up.

I think theres going to be a lot of squad players looking for alternative clubs, if the star players are still drawing the big salaries, as there wont be enough money to go around.  Will it be just the star players and youth teams players coming through in some of these squads?  Your not going to pay 30, 40, 50k for a sub are you?

I''m actually looking forward to it, as it should give us a chance to play on a more level field, pardon the pun.  I think our boards long term strategy is correct, though after the kick in the nads we''ve had off two of our idols in recent weeks it may not be as clear to us at the moment.  We''ve got to look at the bigger picture, get the right manager, being Gus Poyet in my eyes, though I am warming to Chris Hughton after talks with some blue noses.

What are your thoughts?  Anyone know the accounts of other teams compared to ours and the potetial impact this will have?

 

 

[pablofarmer 0]

Great post!

I believe Captain McNally is steering the good ship NCFC in a good direction.

Hugton is my favourite at the moment. But Poyet would be good too I think.

[FourFourTwo 0]

The Premier League don''t have FFP rules. UEFA''s FFP rules only effect clubs that qualify for European competitions.

Other Premier League clubs will only be effected if they get relegated into the Championship who have their own FFP rules.

Sooner the Premier League introduces FFP rules the better for us. Might be a long wait as so many clubs would be unable to conform so won''t vote them in.

[Yellowbeagle 0]

[quote user="FourFourTwo"]The Premier League don''t have FFP rules. UEFA''s FFP rules only effect clubs that qualify for European competitions. Other Premier League clubs will only be effected if they get relegated into the Championship who have their own FFP rules. Sooner the Premier League introduces FFP rules the better for us. Might be a long wait as so many clubs would be unable to conform so won''t vote them in.[/quote]

Clubs would be pretty stupid to not get their houses in order, if they are aiming to qaulify for europe or try to win anything, they also are only exempt from FFP for one year if relegated then are expected to comply fully. So they either choose to aim for smack bang mid table,not win anything and not be relegated and to not qaulify via fairplay either, or just get their finances in order?

Had alook at a site analysing FFP abit long-winded but some interresting points and a mention that relegation to the championship for Villa might be a disaster, apparently they currently pay 5m per year in interest on their 110m debt.    http://www.financialfairplay.co.uk

 

 

[Scot-e-dog 34]

In short, it won''t affect the big clubs much.  Man City have already declared hoe they are going to get around a number of the financial regulations - Etihad are going to sponsor the pitch for £400m (or some other silly figure).While the intention of this is good, it looks although it may well end up further harming the very clubs it was supposed to protect!

[FourFourTwo 0]

The UEFA rules (all 85 pages of them) are designed to protect clubs from themselves, prevent them overspending and doing a Portsmouth and ensure they invest in youth football:

Article 2 – Objectives

1

These regulations aim:

a) to further promote and continuously improve the standard of all aspects of

football in Europe and to give continued priority to the training and care of

young players in every club;

b) to ensure that a club has an adequate level of management and

organisation;

c) to adapt clubs’ sporting infrastructure to provide players, spectators and

media representatives with suitable, well-equipped and safe facilities;

d) to protect the integrity and smooth running of the UEFA club competitions;

e) to allow the development of benchmarking for clubs in financial, sporting,

legal, personnel, administrative and infrastructure-related criteria throughout

Europe.

2

Furthermore, they aim to achieve financial fair play in UEFA club competitions

and in particular:

a) to improve the economic and financial capability of the clubs, increasing their

transparency and credibility;

b) to place the necessary importance on the protection of creditors by ensuring

that clubs settle their liabilities with players, social/tax authorities and other

clubs punctually;

c) to introduce more discipline and rationality in club football finances;

d) to encourage clubs to operate on the basis of their own revenues;

e) to encourage responsible spending for the long-term benefit of football;

f) to protect the long-term viability and sustainability of European club football.

[paul moy 235]

Recently done to death here :

http://services.pinkun.com/forums/pinkun/cs/forums/2729231/ShowPost.aspx

[The Yellow Pimpernel 0]

So its agreed there will be less big names on the benches and more youth players making up the squads?

 

All clubs will have to abide, because theres 9 clubs going for the Eurpoean places and 6-8 normally fighting relagation for much of the season.

 

Our income if we finish next season in similar position to the past, together with a decent size match-day income will make us competitive if were all on similar budget/expenditure laws.  However, in our advantage is the fact we shall have no debts to service from the end of 2012 - 13 season, whereas other clubs are 10s - 100s of millions in debt.

[FourFourTwo 0]

Less big names on the benches? Not for the big clubs with massive commercial incomes.

These rules will make it harder for clubs to climb the league, unless you can produce superstars through their academies.

The limit on number of senior players in each Premier League squad is having more effect than the FFP rules. Look at how many players Reading have had to release following promotion.

[The Yellow Pimpernel 0]

FourFourTwo, with all due respect, they have "massive commercial incomes", yet are still making massive losses and have massive debts on the books.  How are they going balance that?  By paying more wages for more stars?  No they will have to cut there cloth accordingly.  Trim senior player numbers form the squads and the wages for non-star players will also fall into line.  Youll always want to pay as much as you can for a top top player like a Ronney, Gerrard or a Holt, but for squad players is there a need to pay 50 or 100k pw? 

 

The only other alternative is if the top clubs seek a higher proportion of the TV income, which I cant see the rest of the PL accepting, just to make the top 6s lives easier, when theyre already killing the game with their financial (debt) muscle.

 

Anyway, back to the point, with City debt free (2013) and other clubs paying interest on their debts and not allowed to increase that debt, we should be in a better position to compete.  We need some positivity, its been a tough couple of weeks!

 

Paul Moy, when you walk in a pub do you make your mates who were there 10 minutes earlier recount the conversations they had prior to your arrival?  Or do they say no we cant have that conversation we had it last week/ month/ year?  It would be even more boring on here if there were only 6 threads on this forum.  Lambert, Holt, McNally, Morisson/ Tearny, ground expansion, and now FFP.  Have I missed anything?