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Author Topic: Financial fair play  (Read 219753 times)

Offline Kevin Dawson

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Re: Financial fair play
« Reply #15 on: May 27, 2018, 07:58:51 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 don’t know what to do about it.

Do you know which 12?

Offline pauliewalnuts

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Re: Financial fair play
« Reply #16 on: May 27, 2018, 08:03:08 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 don’t know what to do about it.
As far as I know, we were absolutely fine

I seem to recall that at one of the SCG meetings, Wyness said that FFP is not a problem this season, but would be next season if we did not get promoted.

Online amfy

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Re: Financial fair play
« Reply #17 on: May 27, 2018, 08:10:24 PM »
At SCG he said it was a problem if we didn't go up this time, but only on a 'the loans will have to go back' level.

We won't have the money we have had, but we're not in actual trouble from what I know. We have been cutting already, we have contracts expiring, we have loans, we have some decent youths.

Offline Matt Collins

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Re: Financial fair play
« Reply #18 on: May 27, 2018, 08:12:20 PM »
This is the best summary I found. Can't vouch for its veracity but I found it both convincing and obviously alarming. In short, says we need to generate c £40m next season. We can save a bit on the high earners leaving. But that looks like jack leaving to me. Can't imagine Kodjia's stock is high enough

https://heartoftheholte1874.wordpress.com/2018/02/20/villa-play-ffp-roulette-as-the-consequences-of-failing-this-season-becomes-clear/#more-37

Any accountant types able to comment on this piece?

Offline PeterWithesShin

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Re: Financial fair play
« Reply #19 on: May 27, 2018, 08:12:53 PM »
He's hardly going to tell a bunch of fans that we're fucked is he. Hopefully we aren't, but from meetings I was at in the past, what they say and what happens aren't always the same thing.
« Last Edit: May 27, 2018, 08:20:42 PM by PeterWithesShin »

Offline VinnieChase84

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Re: Financial fair play
« Reply #20 on: May 27, 2018, 08:30:22 PM »
I think between the new kit deal and the training ground sponsorship that would see around £10m added to income. Now we’re staying down I fully expect to see Recon as our main shirt sponsor shortly

Offline Ads

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Re: Financial fair play
« Reply #21 on: May 27, 2018, 08:33:06 PM »
They are I believe. Have to evidence market rate. Surely easier for us given Sky Sports 1 at 17:30 every other Saturday is the AVTV channel.

Offline Matt Collins

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Re: Financial fair play
« Reply #22 on: May 27, 2018, 08:36:05 PM »
I think the EFL consider any sponsorship deal's fair value. So we cant just chuck a ton of money at it as a complete workaround

Why is the kit deal going to increase revenues?

Offline Ads

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Re: Financial fair play
« Reply #23 on: May 27, 2018, 08:40:18 PM »
You keep a bigger chunk as Fanatics own the production. Nike pay something like 10 dollars for ever shirt and then a portion to the sports team they're producing for. As Fanatics own the means of producing and distributing, the base cost is smaller per unit  so they take a bigget share and the club receive a larger share.

What do you mean by fair value? It would surely have to be a subjective test? As we're the biggest goons on the block, bringing in the largest TV and paying audience, our Brand Goodwill would be valued significantly higher than tin pot outfits like the Noses or QPR.

Offline kippaxvilla2

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Re: Financial fair play
« Reply #24 on: May 27, 2018, 08:40:25 PM »
If you do basic maths of salaries versus expected revenue next season I can see it being a difficult summer and like in most organisations you find it hard to get rid of the dross and lose talent.  On a very fag packet basis you have;

Five loanees gone so best part of £150k per week recouped but the team is weaker.
One of Jack and Kodjia to go - say £20m. 
Parachute payment £15m
Tv money £6m
Other income including season tickets £12m
Total bought in; £61m

Outlays:

McCaramack £40k per week.
Richards - £35k per week.
11 times first teamers average 20k per week
Staff and reserves and hangers on £15k per week.
Management costs - 60k per week
General overheads £5k per week.

Total outlay equals £42,940,000

Take one of the sales out above and it leaves us in precarious state when you add in the losses of the previous seasons.
« Last Edit: May 27, 2018, 08:43:15 PM by kippaxvilla2 »

Offline Matt Collins

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Re: Financial fair play
« Reply #25 on: May 27, 2018, 08:43:35 PM »
You keep a bigger chunk as Fanatics own the production. Nike pay something like 10 dollars for ever shirt and then a portion to the sports team they're producing for. As Fanatics own the means of producing and distributing, the base cost is smaller per unit  so they take a bigget share and the club receive a larger share.

What do you mean by fair value? It would surely have to be a subjective test? As we're the biggest goons on the block, bringing in the largest TV and paying audience, our Brand Goodwill would be valued significantly higher than tin pot outfits like the Noses or QPR.


I agree there would have to be a degree of subjectivity to the fair value assessment. I only read about it today so not sure how it works.

Thank for info on the shift deal. Sounds food. Though why doesn't everyone do something like that then?

Offline Matt Collins

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Re: Financial fair play
« Reply #26 on: May 27, 2018, 08:44:26 PM »
Fucking autocorrect

If we have to sell freakish I'll be butter

Offline Ads

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Re: Financial fair play
« Reply #27 on: May 27, 2018, 08:46:41 PM »
Not sure to be honest. It's how it's done in the US with NFL and it seems we're opening up their entry to the UK market for them.

Offline A Northern Soul

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Re: Financial fair play
« Reply #28 on: May 27, 2018, 09:00:27 PM »
I tend to agree with the sums posted and those in the article. What would be key is a) how many sizeable transfers are still being dripped onto the P&L next season - McCormack, Kodjia & Hogan spring to mind; b) if they are then there’s little point in selling Ross or Scott for a much reduced sum as whilst it would generate cash it may have a negative impact on the P&L - if say we sold Hogan for £3m but still had £6m of costs to be posted wouldn’t that shows as a £3m loss?!; c) we are hardly in a position to write off costs paying off another manager and his staff - unless we do it on the drip; which brings us to d) how many other managers are we still paying off on the drip which could be eating into the P&L bottom line?

All in looks calamitous and suggests 2-3 big sales that could  show a P&L surplus, BUT if half the Championship can’t balance the FFP books then maybe we just bite the bullet & see what happens if we were to get up...

Offline Phil from the upper holte

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Re: Financial fair play
« Reply #29 on: May 27, 2018, 09:03:05 PM »
Don't man city just pay a fine? Can't we offer the FA £1 million at £6 a week?

 


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