Football club finances / FFP

[RPCB]

Vitesse given 18 point deduction, they now sit on -1, and relegated.

So they’ve gone from bottom to bottom.

 

[Bojan KantKick]

 

[Bojan KantKick]

 

[chef]

What would the figure have been this season?

s**t for the bigger clubs but great for the league as a whole.

 

[Bojan KantKick]

What would the figure have been this season?

s**t for the bigger clubs but great for the league as a whole.

Around £100m last year I think. I don't mind it. Clubs should prioritise their academies and developing existing players. I prefer a luxury tax model with the tax being spread through the pyramid. This may be added at a later date I guess.

 

[moomba]

The devil will be in the detail, but what we're looking at is a cap of around £500m on wages (not sure if player or all staff), amortisation and agent fees.

Last year, according to the Mail, Chelsea was £539m, we were on £501m. Would imagine United would be above £500m as well.

 

[chef]

The devil will be in the detail, but what we're looking at is a cap of around £500m on wages (not sure if player or all staff), amortisation and agent fees.

Last year, according to the Mail, Chelsea was £539m, we were on £501m. Would imagine United would be above £500m as well.

So not much will change?

 

[SM]

That's actually the opposite. The fairest FFP would be to limit all clubs to 80% (or a similar number) of the turnover of the smallest club in the league. But that of course would never happen.

Guess I was wrong.

 

[Jatz]

As someone that hasn't cared an awful lot about FFP (similarly to my club apparently), once we get our points deduction etc, will the transfer embargo still be applied? Or does that get lifted once a points deduction occurs?

 

[SM]

As someone that hasn't cared an awful lot about FFP (similarly to my club apparently), once we get our points deduction etc, will the transfer embargo still be applied? Or does that get lifted once a points deduction occurs?

Isn't the transfer embargo an EFL thing?

 

[Jatz]

Isn't the transfer embargo an EFL thing?

Oh was it? I had assumed that was a PL thing.

What were the EFL coming after us for? I thought the whole thing was we failed FFP last season, not this season.

 

[SM]

Oh was it? I had assumed that was a PL thing.

What were the EFL coming after us for? I thought the whole thing was we failed FFP last season, not this season.

Because you breached PSR while in the EFL.

Leicester WILL be free to sign players during summer transfer window

EXCLUSIVE BY MATT HUGHES: Leicester will officially become a Premier League club at the top-flight's Annual General Meeting on 6 June, effectively triggering the end of the embargo.

www.dailymail.co.uk

 

[Jatz]

Because you breached PSR while in the EFL.

Leicester WILL be free to sign players during summer transfer window

EXCLUSIVE BY MATT HUGHES: Leicester will officially become a Premier League club at the top-flight's Annual General Meeting on 6 June, effectively triggering the end of the embargo.

www.dailymail.co.uk

* me, the EFL are absolutely amateur hour. So all this hullabaloo they've kicked up was on projections only.

It's no wonder we (correctly) told them to go * themselves.

Being able to sign players makes me feel a lot better about the upcoming season, even with the inevitable points deduction.

 

[SM]

* me, the EFL are absolutely amateur hour. So all this hullabaloo they've kicked up was on projections only.

It's no wonder we (correctly) told them to go * themselves.

Being able to sign players makes me feel a lot better about the upcoming season, even with the inevitable points deduction.

Projections? It was based on you breaching PSR in your last set of accounts.

 

[Jatz]

Projections? It was based on you breaching PSR in your last set of accounts.

The EFL imposed a registration embargo on Leicester for allegedly breaching the upper loss limits in their PSR forecasts for this season

What's with the bold then?

And the EFL can't possibly punish up for breaching them in our last set of accounts when that falls into a period we weren't even playing in the EFL, surely? Well actually, I know they can't. They've been told twice this season already that they're not in a position to do so.

 

[Jatz]

Leicester are braced for a busy summer, as based on the EFL's forecasts will need to sell players before 30 June to avoid being charged with breaching PSR regulations this season.

Not to mention this.

It all looks to be based on projections from the EFL side of it?

 

[SM]

What's with the bold then?

And the EFL can't possibly punish up for breaching them in our last set of accounts when that falls into a period we weren't even playing in the EFL, surely? Well actually, I know they can't. They've been told twice this season already that they're not in a position to do so.

Because you haven't submitted accounts to the EFL though. Given your accounts for last season in the PL and the level of losses there was no reasonable way for you to come under the EFL's limits given your spending this season. I would think it's in equal parts punishment for the real breaches as well as saying that for next season you would be restricted in order to meet EFL requirements for next season.

 

[SM]

Not to mention this.

It all looks to be based on projections from the EFL side of it?

So you're saying because you were relegated the EPL can't punish you for last season nor can the EFL? Doesn't really wash.

 

[Jatz]

So you're saying because you were relegated the EPL can't punish you for last season nor can the EFL? Doesn't really wash.

No the EPL can (and will be).

The EFL can't until the accounts close on this season.

 

[Jatz]

Because you haven't submitted accounts to the EFL though. Given your accounts for last season in the PL and the level of losses there was no reasonable way for you to come under the EFL's limits given your spending this season. I would think it's in equal parts punishment for the real breaches as well as saying that for next season you would be restricted in order to meet EFL requirements for next season.

But we can sell players before June 30 to help balance the books, no?

They've come out of this looking pretty amateur tbh. Twice they've been knocked on the head this season for trying to overreach in relation to us.

 

[SM]

No the EPL can (and will be).

The EFL can't until the accounts close on this season.

That feels a bit reactive. If a club's made huge losses surely it makes more sense to restrict their spending based on their guidance and forecasting rather than wait until they've spent the money, racked up the points and impacted the season to then punish them retrospectively?

 

[SM]

But we can sell players before June 30 to help balance the books, no?

They've come out of this looking pretty amateur tbh. Twice they've been knocked on the head this season for trying to overreach in relation to us.

Which was the whole point of the punishment, no? They're trying to get you back on track and operating fairly, and if you do so then the embargo is lifted. Makes perfect sense to me.

 

[Jatz]

That feels a bit reactive. If a club's made huge losses surely it makes more sense to restrict their spending based on their guidance and forecasting rather than wait until they've spent the money, racked up the points and impacted the season to then punish them retrospectively?

Well no, they don't have the power to do that.

You don't punish clubs before they've offended. I can't think of a single club that's ever happened to.

You punish a club once a breach has occurred.

 

[SM]

Well no, they don't have the power to do that.

You don't punish clubs before they've offended. I can't think of a single club that's ever happened to.

You punish a club once a breach has occurred.

But you have offended?

All clubs in the EFL as far as I'm aware need to submit business plans to the EFL and can only make transfers if they are ticked off and ensure the club remains under the threshold for FFP. Our chairman and Director of Football have spoken at length about how every transfer needs to be ratified on that basis. If you're already over the threshold, by default the transfers won't be ticked off.

It's also why the embargo isn't carrying on in the PL because they don't have the same requirement.

 

[Jatz]

But you have offended?

All clubs in the EFL as far as I'm aware need to submit business plans to the EFL and can only make transfers if they are ticked off and ensure the club remains under the threshold for FFP. Our chairman and Director of Football have spoken at length about how every transfer needs to be ratified on that basis. If you're already over the threshold, by default the transfers won't be ticked off.

It's also why the embargo isn't carrying on in the PL because they don't have the same requirement.

Not in the EFL we haven't. We can't have, those accounts don't close until this financial year. That is literally the whole point. They're going off projections before any figures are finalised for the financial year.

So why did they sign off a whole lot of transfers for us before the start of this season if we were in such trouble? Clearly they weren't paying attention while ratifying the Winks deal for instance. So they've agreed with them and then months later realised they shouldn't have? Sounds like they're not really on top of things...