I'm totally baffled by FFP. Can anyone explain how it operates to a mere simple decorater like what I am?It seems to be full of loopholes which clubs are looking to exploit if they possibly can.But I'm happy to say that I struggle to understand and would be happy for some guidance.
I’m sure there’s some form of test and I’d be a bit worried that any deal of this sort falls foul of that
We've only been there since the seventies, and it's imaginatively named after its geographical location.Rather than losing any, I think this'll help me sleep.
Quote from: Matt Collins on April 12, 2018, 06:32:54 AMI’m sure there’s some form of test and I’d be a bit worried that any deal of this sort falls foul of that I wouldn't. Man City took the piss and got away with it.
Quote from: Ad@m on April 12, 2018, 08:22:01 AMQuote from: Matt Collins on April 12, 2018, 06:32:54 AMI’m sure there’s some form of test and I’d be a bit worried that any deal of this sort falls foul of that I wouldn't. Man City took the piss and got away with it.Were they running at a profit when they did? It might be easier to allow such investment through the books when it's less obviously offsetting a loss.
The key principle is that you can’t make too large a loss, and plug it with subsidy from the owner People try to get around this by disguising subsidy as a commercial deal - eg the owners or a related party sponsoring the stadium for a huge amount I’m sure there’s some form of test and I’d be a bit worried that any deal of this sort falls foul of that
It would make more sense if he got one of the companies Recon trades with to come to the party. A company not actually owned or connected to Xia, but that relies on Recon for trade. Get them to sponsor Villa in some way, shape or form on the understanding that they will benefit from better trade terms elsewhere.
Quote from: Matt Collins on April 12, 2018, 06:32:54 AMThe key principle is that you can’t make too large a loss, and plug it with subsidy from the owner People try to get around this by disguising subsidy as a commercial deal - eg the owners or a related party sponsoring the stadium for a huge amount I’m sure there’s some form of test and I’d be a bit worried that any deal of this sort falls foul of that This is where the BH deal seems a bit odd to me. Recon is clearly Xia's company. It will take the powers that be 0.0001th of a second to clock that as well, so in that scenario, he clearly is subsidising the club. (And if that sort of loophole was/is available, why wait until now to exploit it - why the limited spend fee-wise this year, when promotion really was priority 1,2 and 3). It would make more sense if he got one of the companies Recon trades with to come to the party. A company not actually owned or connected to Xia, but that relies on Recon for trade. Get them to sponsor Villa in some way, shape or form on the understanding that they will benefit from better trade terms elsewhere.
Quote from: KevinGage on April 12, 2018, 10:31:07 AMQuote from: Matt Collins on April 12, 2018, 06:32:54 AMThe key principle is that you can’t make too large a loss, and plug it with subsidy from the owner People try to get around this by disguising subsidy as a commercial deal - eg the owners or a related party sponsoring the stadium for a huge amount I’m sure there’s some form of test and I’d be a bit worried that any deal of this sort falls foul of that This is where the BH deal seems a bit odd to me. Recon is clearly Xia's company. It will take the powers that be 0.0001th of a second to clock that as well, so in that scenario, he clearly is subsidising the club. (And if that sort of loophole was/is available, why wait until now to exploit it - why the limited spend fee-wise this year, when promotion really was priority 1,2 and 3). It would make more sense if he got one of the companies Recon trades with to come to the party. A company not actually owned or connected to Xia, but that relies on Recon for trade. Get them to sponsor Villa in some way, shape or form on the understanding that they will benefit from better trade terms elsewhere. There's absolutely nothing to say a person can't own a club and sponsor it with another company they own, all the rules say is that the deal has to be realistic. How you determine the realistic value of sponsoring the training ground is the question. Given they can now add recon to the boards they do interviews in front of and the sheer number of televised games we have means we can probably argue the value up a fair bit.
This FFP is utter bollocks isn't it?