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Author Topic: Financial fair play  (Read 98408 times)

Offline aj2k77

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Financial fair play
« on: May 27, 2018, 05:48:41 PM »
Ok so how buggered are we?

From what I read you are allowed £39m of losses over 3 years as long as the owner injects capital. More losses allowed should you have had time in the Premier League. Of which by the end of next we wont have, so we have £39m of losses allowed.

Some of the losses can be excluded. Losses to do with sale of the club and downwriting assets, not including players. Last season we posted losses of £80m, of which £79m were exceptional items. How much of that we can exclude from FFP I have no idea.

This year we posted a loss of £14m.

So that's £94m of losses over two seasons. Somehow we are going to have to get down to £39m including next seasons results and that's with £18m less of parachute payments. By my non certified accountant reckoning we need to find £70m ish to avoid breaking the rules by the end of next season, unless a large sum of the exceptional items from last year can be written off against the amount...

Have I gone wrong somewhere?

Offline Ads

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Re: Financial fair play
« Reply #1 on: May 27, 2018, 05:52:31 PM »
If £79 million is exceptional losses, is that not excluded from the calculation?

Recon sponsoring our training ground, shirts, tea spoons and the shadows we cast will help, as will getting a few more votes to change the rules.
« Last Edit: May 27, 2018, 05:56:55 PM by Ads »

Offline Matt C

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Re: Financial fair play
« Reply #2 on: May 27, 2018, 05:55:45 PM »
So we just need to find a buyer for Micah Richards at 69m and weíre all but home and dry.

Offline aj2k77

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Re: Financial fair play
« Reply #3 on: May 27, 2018, 05:58:51 PM »
If £79 million is exceptional losses, is that not excluded from the calculation?

Recon sponsoring our training ground, shirts, tea spoons and the shadows we cast will help, as will getting a few more votes to change the rules.

£79m were exceptional losses but I don't know how much of that can be excluded from FFP. Things such as player depreciation cannot. It looked a weird set of accounts at the time, I'm hoping that it was a bit of pre-planning by the owner at the time to give us potential wiggle room but I don't know.

Offline Ads

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Re: Financial fair play
« Reply #4 on: May 27, 2018, 06:01:05 PM »
It does seem odd to to have £80 million losses but only £1 million counts as an ordinary loss. Somebody will know I suppose.

Wyness has never sounded too concerned about it all to be honest. I strongly suspect Recon sponsorship is a means of jibbing the system a bit.

Offline VinnieChase84

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Re: Financial fair play
« Reply #5 on: May 27, 2018, 06:26:19 PM »
Excuse my ignorance on this but wasnít the £80m loss year (£79 exceptional) the year we went down (for which Dr Tony was now responsible for due to club purchase)
£14m loss was last season
This season wonít be posted till next year!? If we made £14m losses last season then this one must be more flat/even due to the player sales!?
Which means we will be absolutely fine!?

Offline Stu

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Re: Financial fair play
« Reply #6 on: May 27, 2018, 06:28:59 PM »
Hasn't the Dr borrowed a load of money to finance the club? I can see him selling up.

Offline amfy

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Re: Financial fair play
« Reply #7 on: May 27, 2018, 06:38:54 PM »
As I remembwr the 'exceptional losses' were something weird like thebclub being worth less because its a Championship club rather than a Premiership club now.
This being the case- thats a notional loss rather than actual debt, so I'm not sure it counts.

* all.of this could.be wrong!

Offline Stu

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Re: Financial fair play
« Reply #8 on: May 27, 2018, 06:44:18 PM »
Hm. I think we should be a bit more concerned, or at least questioning, than we are. I'm still not convinced the owner has any of his own money to spend.

Offline VinnieChase84

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Re: Financial fair play
« Reply #9 on: May 27, 2018, 06:46:02 PM »
Hm. I think we should be a bit more concerned, or at least questioning, than we are. I'm still not convinced the owner has any of his own money to spend.

Whatís this based on may I ask?

Offline Stu

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Re: Financial fair play
« Reply #10 on: May 27, 2018, 06:52:29 PM »
Hm. I think we should be a bit more concerned, or at least questioning, than we are. I'm still not convinced the owner has any of his own money to spend.

Whatís this based on may I ask?

There's stuff out there about Tone's MSG business being in debt, and he borrowed the money to buy Villa against his company.

It's internet stuff, so likely to be nonsense, however his background is so opaque that I do have my doubts about him and always have.

Offline Stu

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Re: Financial fair play
« Reply #11 on: May 27, 2018, 06:54:50 PM »
If anyone who knows about the financial side of things could provide more positive info, please do. I'd like to feel a bit better about the future!

Offline pauliewalnuts

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Re: Financial fair play
« Reply #12 on: May 27, 2018, 06:59:22 PM »
Hm. I think we should be a bit more concerned, or at least questioning, than we are. I'm still not convinced the owner has any of his own money to spend.

Whatís this based on may I ask?

There's stuff out there about Tone's MSG business being in debt, and he borrowed the money to buy Villa against his company.

It's internet stuff, so likely to be nonsense, however his background is so opaque that I do have my doubts about him and always have.

Well, I reckon we'll find out pretty soon, because we are going to need to buy a lot of players.

Look at the players who are here on loan, take them out, take out the leeches and end of contract players and look at what's left.

Not a lot.

Offline kippaxvilla2

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Re: Financial fair play
« Reply #13 on: May 27, 2018, 07:05:57 PM »
There were at the end of the normal season twelve clubs in the championship that had failed the FFP test.  Not sure if we were one of them but small heath certainly were.  The league authorities are so shocked at the number of clubs involved they literally donít know what to do about it.

Offline VinnieChase84

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Re: Financial fair play
« Reply #14 on: May 27, 2018, 07:08:04 PM »
There were at the end of the normal season twelve clubs in the championship that had failed the FFP test.  Not sure if we were one of them but small heath certainly were.  The league authorities are so shocked at the number of clubs involved they literally donít know what to do about it.
As far as I know, we were absolutely fine