Quote from: Villafirst on September 24, 2018, 07:35:07 PMThe FFP rules are an absolute joke. The very clubs who created this like Man City and Chelsea have flouted the rules for years and haven't received a single point deduction. Even Bournemouth have broke the rules twice and just received fines only. The hounding of Championship clubs is totally unfair. FFP actually protects the top sides, ridiculous!FFP has worked in the Championship as it was introduced to prevent the amount of clubs going into administration due to spending way more than their income. The problem was to apply the same regulations to the Premier League, where a different problem occurs.
The FFP rules are an absolute joke. The very clubs who created this like Man City and Chelsea have flouted the rules for years and haven't received a single point deduction. Even Bournemouth have broke the rules twice and just received fines only. The hounding of Championship clubs is totally unfair. FFP actually protects the top sides, ridiculous!
Why should a club the size of the us be expected to bear the same losses as a club the size of QPR, whose ground is a tad bigger than the Holte End?
I'm convinced that Jack's release clause is an integral part of us getting around FFP. Because, in essence, we have increased one particular asset's value from £35m to £60m – the equivalent of an extra £25m income. I'm sure someone who knows more about accounting regulations will be along shortly to burst that bubble.
Quote from: exigo on September 26, 2018, 01:24:39 PMI'm convinced that Jack's release clause is an integral part of us getting around FFP. Because, in essence, we have increased one particular asset's value from £35m to £60m – the equivalent of an extra £25m income. I'm sure someone who knows more about accounting regulations will be along shortly to burst that bubble.Nope. ignoring that your quoted prices are crazy, I think FFP is based on actual revenue not book values.
Players you buy from another club - the purchase price goes into the accounts, and is then amortised over the length of the contract. A £10m signing on a four year contract will be worth £5m after two years. If you then sell him for £12m, you'd make a £7m profit. If he leaves on a free transfer, it's a £5m loss.Youth team players - there's never any value in the accounts, even if they sign a new contract or have a release clause. You only make a profit when you sell them, so at any point, whatever you sell them for, eg if it's Jack for £30m, then £30m is the profit. If there's a release clause, the profit is only realised if a club matches that valuation and pays that for him.
It's plain to see that Grealish is worth so much more than nothing.