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Author Topic: Financial fair play  (Read 72348 times)

Offline eamonn

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  • Location: Highgate
Re: Financial fair play
« Reply #915 on: April 16, 2019, 03:50:19 PM »
Gibson seems butt-hurt, maybe cos he tries to look like Tom Hanks whereas we actually have Tom as a fan.

Offline kippaxvilla2

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  • Location: Back in Solihull
Re: Financial fair play
« Reply #916 on: April 16, 2019, 04:18:06 PM »
He was going to smash this league last year now he just wants to smash those within it.

Offline Dazvillain

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Re: Financial fair play
« Reply #917 on: April 24, 2019, 09:35:52 PM »
So his motion of wanting teams to publish their ffp and accounts to others got voted out at today’s meeting 👍🏻👏🏻👏🏻👏🏻 . Not much headline news or detail around about it that I’ve seen though

Offline cdbullyweefan

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  • I still hate Bono.
    • Every time you click this link, a child in Africa dies.
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Re: Financial fair play
« Reply #918 on: April 24, 2019, 10:28:49 PM »
The Derby thing does seem a blatant attempt to get around the rules, to be fair. If they can do that then it makes a mockery of the whole rules.

It's really not a loophole of any sort.  Sale and leaseback is standard business practice in the 'real world' and has actual economic consequences. Derby County no longer own their stadium.  The fact that it's to another company owned by their chairman is neither here nor there.

Hypothetically, if he, or rather his company, was to sell the stadium back to Derby at a much reduced rate, would that be any sort of breach of FFP?

Also, not sure what the "real world" has to do with this. Most billionaire business owners can invest what they want without worrying that it might upset their competitors, so football is already ignoring business norms in applying such rules in the first place, isn't it?
« Last Edit: April 24, 2019, 11:05:02 PM by cdbullyweefan »

Offline Newby

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Re: Financial fair play
« Reply #919 on: April 24, 2019, 11:00:54 PM »
Restraint of trade. If they have it to spend, spend it. Bloody rules!

Online ChicagoLion

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  • Location: Chicago
Re: Financial fair play
« Reply #920 on: April 25, 2019, 06:08:03 AM »
The stadium was on the books at 41m and they got an “ independent “ valuation of 80m and booked a 39mil profit by SALB.
The justification is that the new owner can use the stadium for events on the 330 days it is not in use by the club.
Now it he had paid 250 mil without a valuation then that would a completely different kettle of fish.

Offline UK Redsox

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Re: Financial fair play
« Reply #921 on: April 25, 2019, 08:03:58 AM »
Restraint of trade. If they have it to spend, spend it. Bloody rules!

It always amazes me that that the most capitalist of countries, the USA, runs it's sports leagues on an almost communist basis. Revenue sharing, salary caps, new players sent to the teams that need them the most etc

Offline Villa75

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Re: Financial fair play
« Reply #922 on: April 25, 2019, 10:50:56 AM »
I thought we lost £36.1 million just in one season? How are we going to stay within the limits over three seasons? Surely we're not expecting to make a massive profit from this season?

Offline OzVilla

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  • Location: Sunshine Coast, Australia
  • GM : 09.08.2019
Re: Financial fair play
« Reply #923 on: April 25, 2019, 10:57:30 AM »
I thought we lost £36.1 million just in one season? How are we going to stay within the limits over three seasons? Surely we're not expecting to make a massive profit from this season?

I presume if we don’t go up there’s players that will be sold for big money. We’d get £60 mill for SJ and SJM. Can’t think of another club in our position that can say that. Just hope we don’t have to.

Offline chrisw1

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Re: Financial fair play
« Reply #924 on: April 25, 2019, 11:17:13 AM »
The stadium was on the books at 41m and they got an “ independent “ valuation of 80m and booked a 39mil profit by SALB.
The justification is that the new owner can use the stadium for events on the 330 days it is not in use by the club.
Now it he had paid 250 mil without a valuation then that would a completely different kettle of fish.

I wouldn't want us to go down the stadium sale route just to meet short term FFP needs, just in case the ownership goes sour.  If there was a buy back clause at a fixed price then that would be more comforting.

Offline Lsvilla

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Re: Financial fair play
« Reply #925 on: April 25, 2019, 11:43:15 AM »
I thought we lost £36.1 million just in one season? How are we going to stay within the limits over three seasons? Surely we're not expecting to make a massive profit from this season?
Has anyone seen the amount of compo relating to HS2 going through Bodymoor quantified. I wonder if this is a sizeable sum not in the ordinary budgets?

Offline Risso

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Re: Financial fair play
« Reply #926 on: April 25, 2019, 12:32:46 PM »
The Derby thing does seem a blatant attempt to get around the rules, to be fair. If they can do that then it makes a mockery of the whole rules.

It's really not a loophole of any sort.  Sale and leaseback is standard business practice in the 'real world' and has actual economic consequences. Derby County no longer own their stadium.  The fact that it's to another company owned by their chairman is neither here nor there.

Hypothetically, if he, or rather his company, was to sell the stadium back to Derby at a much reduced rate, would that be any sort of breach of FFP?

Also, not sure what the "real world" has to do with this. Most billionaire business owners can invest what they want without worrying that it might upset their competitors, so football is already ignoring business norms in applying such rules in the first place, isn't it?

Yes, if he then sold it back at a much lower rate, then the whole transaction would be viewed as "artificial" and not at arm's length market rates, which is supposed to be the key component of FFP.  You're right about FFP being contrary to any sort of normal business behaviour, which is why as I've said before, I can't understand why it hasn't been challenged in law yet.

Online brian green

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  • GM : 04.06.2019
Re: Financial fair play
« Reply #927 on: April 25, 2019, 12:43:12 PM »
I get the same feeling about why no club has ever, as far as my limited knowledge extends, sued a player for failing to discharge the requirements of his contract with the club eg to attend training even if his front gates are jammed.

Offline cheltenhamlion

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Re: Financial fair play
« Reply #928 on: April 25, 2019, 06:27:04 PM »
The stadium was on the books at 41m and they got an “ independent “ valuation of 80m and booked a 39mil profit by SALB.
The justification is that the new owner can use the stadium for events on the 330 days it is not in use by the club.
Now it he had paid 250 mil without a valuation then that would a completely different kettle of fish.

I wouldn't want us to go down the stadium sale route just to meet short term FFP needs, just in case the ownership goes sour.  If there was a buy back clause at a fixed price then that would be more comforting.

Under the terms of the ACV the Trust organised then I dont think they can anyway but would have to read up on it.

Offline Ads

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Re: Financial fair play
« Reply #929 on: April 25, 2019, 09:02:33 PM »
I thought we lost £36.1 million just in one season? How are we going to stay within the limits over three seasons? Surely we're not expecting to make a massive profit from this season?

2016
FFP Loss of £26.3m
2017
FFP Loss of £5.7m
2018
FFP loss of £26.4m

Total FFP Loss of £58.4m

Allowable Loss of £61m

We're compliant by £2.6m
« Last Edit: April 25, 2019, 09:04:39 PM by Ads »