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Author Topic: Financial condition and constraints if we don’t go up.  (Read 7433 times)

Offline ChicagoLion

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Financial condition and constraints if we don’t go up.
« on: March 19, 2018, 08:12:17 PM »
No parachute payments after this year, no PL TV revenue.
The potential impact of not going up and then having to budget based on Championship revenue is going to be a huge task because FFP.
Any organisation that has to operate on revenues reducing by +60% over a 3 year period would find it difficult.




Offline sickbeggar

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Re: Financial condition and constraints if we don’t go up.
« Reply #1 on: March 19, 2018, 08:18:52 PM »
Yep. Like it or not the club have bet the house on Bruce's promotion or bust hand, and come May they're either going to be planning how to spend the money or trying to hock any player that is worth selling.

Offline wolfman999

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Re: Financial condition and constraints if we don’t go up.
« Reply #2 on: March 19, 2018, 08:35:09 PM »
Hard to think of another business where the wealthy owner is not permitted to invest in something they own. While FFP was probably set up with good intentions, the reality is that it ensures the likes of Man City, Chelsea et all are now secured from anyone else doing what they have done. To make it worse, it appears they are excluded from the consequences of their actions when they bend the rules re FFP. ( Man City and their ground naming funding comes to mind)

Online Richard E

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Re: Financial condition and constraints if we don’t go up.
« Reply #3 on: March 19, 2018, 09:08:24 PM »
Hard to think of another business where the wealthy owner is not permitted to invest in something they own. While FFP was probably set up with good intentions, the reality is that it ensures the likes of Man City, Chelsea et all are now secured from anyone else doing what they have done. To make it worse, it appears they are excluded from the consequences of their actions when they bend the rules re FFP. ( Man City and their ground naming funding comes to mind)

Nope. That’s exactly why FFP was introduced. To keep the closed shop closed.
« Last Edit: March 20, 2018, 11:46:09 AM by Richard E »

Offline kippaxvilla2

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Re: Financial condition and constraints if we don’t go up.
« Reply #4 on: March 19, 2018, 09:13:43 PM »
£13m is it we get next season for parachutes? Plus £6m Championship money. 

Offline Steve67

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Re: Financial condition and constraints if we don’t go up.
« Reply #5 on: March 19, 2018, 09:43:01 PM »
We could always rename one of the stands or the ground to raise hookie money like Man City did?

Offline andyh

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Re: Financial condition and constraints if we don’t go up.
« Reply #6 on: March 19, 2018, 10:12:09 PM »
If a premier league club is fucking stupid enough  to spend £75m on a bang average centre half from Southampton, then we may have to cash in on Jack.
£125m should start the ball rolling, and that will have to bank roll a 3rd season in this bloody division.

Offline ktvillan

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Re: Financial condition and constraints if we don’t go up.
« Reply #7 on: March 20, 2018, 12:06:17 AM »
Hard to think of another business where the wealthy owner is not permitted to invest in something they own. While FFP was probably set up with good intentions, the reality is that it ensures the likes of Man City, Chelsea et all are now secured from anyone else doing what they have done. To make it worse, it appears they are excluded from the consequences of their actions when they bend the rules re FFP. ( Man City and their ground naming funding comes to mind)

Nope. That’s exactly why FFP was introduced. To keep the closed shop closed.

Indeed.  In any other industry I'd guess you'd go to court over it - restraint of trade, unfair competition, cartels,  or whatever.  Maybe that's what it needs.

Offline footyskillz

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Re: Financial condition and constraints if we don’t go up.
« Reply #8 on: March 20, 2018, 11:53:58 AM »
What's the ffp situation if we do go up?
Presumably differs due to higher income.

I going to look into this ffp thing it's both fascinating and baffling.

Offline Ads

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Re: Financial condition and constraints if we don’t go up.
« Reply #9 on: March 20, 2018, 12:21:06 PM »
FFP is likely to be relaxed isn't it?

If it is, then suns out guns out and flex them muscles further and take whatever fine comes our way. FFP is anti-competitive garbage.

Offline ChicagoLion

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Re: Financial condition and constraints if we don’t go up.
« Reply #10 on: March 20, 2018, 01:10:00 PM »
The problem is points deductions.
I am sure some one will eventually legally challenge FFP, “no one wants to be a test case”.

Online olaftab

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Re: Financial condition and constraints if we don’t go up.
« Reply #11 on: March 20, 2018, 01:16:11 PM »
We could always rename one of the stands or the ground to raise hookie money like Man City did?
He can rename Doug Ellis stand as Dr Super Tone stand for £200million

Offline Risso

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Re: Financial condition and constraints if we don’t go up.
« Reply #12 on: March 20, 2018, 01:20:24 PM »
FFP is likely to be relaxed isn't it?

If it is, then suns out guns out and flex them muscles further and take whatever fine comes our way. FFP is anti-competitive garbage.

I'm surprised there hasn't been the equivalent of a Bosman case in respect of it.  It almost certainly breaks EU rules.  In what other industry are you prevented from investing/wasting your own money as you see fit?

Offline berneboy

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Re: Financial condition and constraints if we don’t go up.
« Reply #13 on: March 20, 2018, 01:27:17 PM »
We could always rename one of the stands or the ground to raise hookie money like Man City did?
He can rename Doug Ellis stand as Dr Super Tone stand for £200million

This is a very, very good idea.
I approve.

If it falls through I am willing to contribute my pension increase for a Berneboy Stand - Doug Ellis only as the Trinity is reserved for Sir Brian Little, the Holte can't change and I don't want the North Stand.

Offline Toronto Villa

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Re: Financial condition and constraints if we don’t go up.
« Reply #14 on: March 20, 2018, 02:21:11 PM »
FFP is likely to be relaxed isn't it?

If it is, then suns out guns out and flex them muscles further and take whatever fine comes our way. FFP is anti-competitive garbage.

I'm surprised there hasn't been the equivalent of a Bosman case in respect of it.  It almost certainly breaks EU rules.  In what other industry are you prevented from investing/wasting your own money as you see fit?

It’s really quite bizarre. The idea was to make it a more even playing field in terms of investent/expense relative to revenue. That clubs could not just want only spend what they wanted to create that separation from the rest and in many cases put themselves in long term financial jeopardy. Yet what it has ultimately done is to ensure that most clubs can never again spend to the levels, of but a few who have found loopholes and ways to circumvent the spirit and intent of the rule.

And then as you point goes to the broader point, why shouldn’t someone like a Dr Xia who might want to legitimately invest in a business he was legally acquired not be allowed to do so? If Dr Xia has resources, personal or through other sources to make Villa as big as he is capable why is he restricted from doing so?

 


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