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Author Topic: Financial fair play  (Read 109672 times)

Offline old man villa fan

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Re: Financial fair play
« Reply #645 on: October 18, 2018, 02:15:57 PM »
What I cannot understand with FFP is the ignoring of a new owner coming in and wiping away the debt. In effect the losses built up by the previous owner have been wiped off, providing it is capital investment.  The protection of FFP rules are therefore not required against the past.  Going forward, they should then apply so as to protect the Club if the owner then leaves/runs into financial difficulties.

Offline simboy

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Re: Financial fair play
« Reply #646 on: October 18, 2018, 02:30:49 PM »
But wouldn't that just lead to rather unscrupulous owners "selling" a club to a trusted associate to wipe the debt out for FFP purposes? There are many ways to look as though its a "transaction at arms length" when in fact it is nothing of the sort.

just wondering

Offline chrisw1

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Re: Financial fair play
« Reply #647 on: October 18, 2018, 03:06:20 PM »
Their is also the ‘fair play’ element.  In addition to protecting clubs they are in theory trying to create a more level playing field and wiping the slate clean at each change of ownership would hardly do that.

Offline simboy

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Re: Financial fair play
« Reply #648 on: October 18, 2018, 03:23:42 PM »
The "fair play" element isn't really that though is it? As far as i can see it is the epitome of the ladder being pulled up by the premier league and then the magic circle within the premier league by the "Sky Six".

Take Chelsea, a team with a capacity smaller than us [41,400] but

2016 Total Revenue    £335m

of which

Commercial revenue    £122m
Broadcasting revenue   £143m
Matchday revenue:    £70m

Outgoings
 
Wage Bill   £224m

Net Total Debt   £1.14bn owed to Abramovich

 Chelsea posted a loss of £85 million in 2016 up from 32 Million the year before

where's the "fair play" in this?



Offline mallo

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Re: Financial fair play
« Reply #649 on: October 18, 2018, 03:47:33 PM »
The "fair play" element isn't really that though is it? As far as i can see it is the epitome of the ladder being pulled up by the premier league and then the magic circle within the premier league by the "Sky Six".

Take Chelsea, a team with a capacity smaller than us [41,400] but

2016 Total Revenue    £335m

of which

Commercial revenue    £122m
Broadcasting revenue   £143m
Matchday revenue:    £70m

Outgoings
 
Wage Bill   £224m

Net Total Debt   £1.14bn owed to Abramovich

 Chelsea posted a loss of £85 million in 2016 up from 32 Million the year before

where's the "fair play" in this?

That's why they've renamed it - but I would suggest the fair play would be when Abramovich gets bored things might not be so rosy in the garden.

Offline chrisw1

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Re: Financial fair play
« Reply #650 on: October 18, 2018, 03:53:27 PM »
Oh I agree.  The c***s just pulled up the drawbridge.  But I suspect it is the notion of fair play that will stop the slate being wiped with every sale.

Offline Damo70

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Re: Financial fair play
« Reply #651 on: October 18, 2018, 07:08:25 PM »
Oh I agree.  The c***s just pulled up the drawbridge.  But I suspect it is the notion of fair play that will stop the slate being wiped with every sale.


I totally agree with the 'pulling up the drawbridge' analogy. If you had a filthy rich owner/owners who wanted to spunk hundreds of millions a few years back it was fine but now it isn't. Allowing Chelsea to stockpile lots of players they can loan out for loan fees (sorry I meant 'experience')  and then sell on for a profit and allowing Man City to do the same (albeit to a lesser extent) and also buy feeder clubs in other countries.

Offline john e

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Re: Financial fair play
« Reply #652 on: October 18, 2018, 08:14:57 PM »
Has he pulled up the drawbridge or is he just not allowed to stay in the country very long anymore

Online ChicagoLion

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Re: Financial fair play
« Reply #653 on: October 18, 2018, 09:31:13 PM »
Maybe Jacks new contract and sell on clause has helped.

How so?

He’d presumably be on more money than on his previous contract and the sell on fee can’t help until it’s realised?
If an asset goes up in value you can take the excess value as a profit in that accounting period, so the justification is a new contract and sell on clause,I am not sure that it is valid under FFP.

Offline old man villa fan

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Re: Financial fair play
« Reply #654 on: October 18, 2018, 09:48:28 PM »
In a way, I can understand the PL not want another Man City situation as this could financially destabilise the teams at the top as it would up the spending by the existing clubs to compete with the new 'rich' club.  If this happened, the whole bubble could burst.

If a club gets into difficulties financially, the league should be encouraging anything that gets them out of it for the long term.  The obvious one is capital investment to put the club on an even keel so that they can work within the financial guidelines in the future.  It would appear that FFP is preventing this.

Offline PeterWithesShin

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Re: Financial fair play
« Reply #655 on: October 18, 2018, 09:57:51 PM »
A release clause has no bearing on FFP.

Offline Bad English

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Re: Financial fair play
« Reply #656 on: October 18, 2018, 09:59:06 PM »
Welease Wichards! That would be financial fair play.

Offline Ad@m

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Re: Financial fair play
« Reply #657 on: October 18, 2018, 10:55:50 PM »
Maybe Jacks new contract and sell on clause has helped.

How so?

He’d presumably be on more money than on his previous contract and the sell on fee can’t help until it’s realised?
If an asset goes up in value you can take the excess value as a profit in that accounting period, so the justification is a new contract and sell on clause,I am not sure that it is valid under FFP.

OK, so firstly accounting standards make no attempt to "fair value" footballers - it's impossible to do so.  They're accounted for at amortised cost.

Secondly, the only time you take asset value appreciation in to the income statement is when it's an investment property or you're reversing a previous downward revaluation recognised through the income statement.

And thirdly, a sell on clause has no bearing on a players value in any case.  It's a term in a contract which is unlikely to ever get triggered.  If it did, would that mean players who didn't have a release clause would be worth nothing?!

Offline pauliewalnuts

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Re: Financial fair play
« Reply #658 on: October 18, 2018, 11:13:05 PM »
Reaching the vinegar strokes now, just need someone to mention Spurs wage bill and I'm going to climax.

Offline Ads

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Re: Financial fair play
« Reply #659 on: October 19, 2018, 06:30:59 AM »
Reaching the vinegar strokes now, just need someone to mention Spurs wage bill and I'm going to climax.

You dirty Dawg!