FFP

[Pat Mustard]

On stadium expansion I can only surmise that the short term hit to our Matchday income by reducing capacity just doesn’t work in the financial model whilst we have to chase income and close the revenue gap.

A reduction in capacity for building a new stand or stadium is allowable for FFP, so as long as you've got owners who can stump up the cashflow to bridge the gap for a couple of years, then it's not a reason for not building a new stand.

For the less financially literate amongst us which includes me would that mean if we lost say £8m a season from North Stand income for 2 years NSWE could fill that gap with £8m cash flow injection per annum and that would be FFP allowable?

Presumably any cash they inject would have to have some accounting basis in previous years income (i.e. the owners couldn't just turn around and say each of the 7k unavailable seats were suddenly worth £250 per match?).  If so then it probably makes a bit more sense as to why it was delayed, but we can expect another massive increase in ticket prices and even more GA+ tickets whilst the club gear up for the capacity reduction.

[Pat Mustard]

At the moment ‘the big 6’ are protected due to their greater income which was never the intention of the rules.

Are you sure about that?

I think the Big teams Man U, Liverpool, Spurs, Arsenal have been that for years. Man City and Chelsea were never included in that until 20 years ago or so they had somebody throwing ridiculous money around. The powers that be have now put a stop to that so those teams will not be contested size wise for the foreseeable future surely? It’s amazing that Girona are punching above their weight in La Liga but we know that without investment it’s likely to be short lived. I think it suits the bigger teams and governing bodies for the wealth and power to remain with a select few.

You are aware who owns Girona?

[Sexual Ealing]

I'd imagine the rules will have to be changed at some point if transfer windows start to dry up. The broadcasters pay a lot of money, and that's their summer entertainment.

[Dogtanian]

The key thing is that that loss has not caused a breach and can't lead to points deductions this season. We know this because we would already have been charged as the PL had the figures in December.

The other thing to bear in mind is that the £120m won't be the FFP figure, it will be less than that. We've opened a second academy with all its costs, that comes off FFP for a start.

So the important thing is what we've done in this season's accounts to keep within the rules. I think it is telling that after the January window closed they extended the financial year till two weeks after the summer transfer window opens, giving them options to do a bit more.

But our revenue will have massively increased. We've earned around £12m already from european games, with another £10m on the table. We know BK8 pay us massively more than Cazoo did. Our ticket prices have gone up considerably, plus all the GA+ revenue on top. And, we haven't had to pay a management team to fuck off for once.

We will have options for ensuring we stay within the rules, and I don't think we're going to be stupid enough to have put ourselves in the situation where we have to sell a £100m player by the end of June to do it. Selling someone might sort it, but not a prized asset while our arms are tied behind our backs.

[tomd2103]

Aren't these losses before PSR deductions. From here the club fil in form 3A that all clubs file for the deductibles. This is then double checked by the PL then they inform the club their final PSR calculation.

Been listening to a lot of Simon Jordan. I think that's correct, isn't it?

Think that this is a pretty major question in all of this.

[Dogtanian]

Aren't these losses before PSR deductions. From here the club fil in form 3A that all clubs file for the deductibles. This is then double checked by the PL then they inform the club their final PSR calculation.

Been listening to a lot of Simon Jordan. I think that's correct, isn't it?

Think that this is a pretty major question in all of this.

Yes, because these losses are the company accounts and used for tax purposes. HMRC has yet to fall under the Premier League's thrall.

[Baldy]

Found Purslow interview a week ago for anyone who wishes to hear it:

[The Edge]

My head hurts after reading this thread. I know nothing about accounts I'm only an electrician. Are we in trouble and looking at points deductions this year or next?

[Dogtanian]

My head hurts after reading this thread. I know nothing about accounts I'm only an electrician. Are we in trouble and looking at points deductions this year or next?

Definitely not this year as we would have been charged already.

Next season depends what happens in this season's accounts. If we've made it worse this season, potentially a deduction next season.

[rob_bridge]

My head hurts after reading this thread. I know nothing about accounts I'm only an electrician. Are we in trouble and looking at points deductions this year or next?

No points this year. No points next year as long as we are smart which overall I think we have been.

We'll be pushing 250-260m income and probably a lower net spend on players.

However I still think we will need a prized asset sale - probably Luiz to balance the books comfortably. 

Can someone clarify are we allowed to deduct the 'investments' womens football, training ground from the losses?

[Percy McCarthy]

At the moment ‘the big 6’ are protected due to their greater income which was never the intention of the rules.

Are you sure about that?

I think the Big teams Man U, Liverpool, Spurs, Arsenal have been that for years. Man City and Chelsea were never included in that until 20 years ago or so they had somebody throwing ridiculous money around. The powers that be have now put a stop to that so those teams will not be contested size wise for the foreseeable future surely? It’s amazing that Girona are punching above their weight in La Liga but we know that without investment it’s likely to be short lived. I think it suits the bigger teams and governing bodies for the wealth and power to remain with a select few.

I was asking if he was sure about protection of the big 6 never being the intention.

[The Edge]

Found Purslow interview a week ago for anyone who wishes to hear it:

That was very informative. Thanks mate. He seems so clued up compared the his replacement it makes me wonder whether wonder if that's the first and biggest rick that our owners have made.

[Dogtanian]

My head hurts after reading this thread. I know nothing about accounts I'm only an electrician. Are we in trouble and looking at points deductions this year or next?

No points this year. No points next year as long as we are smart which overall I think we have been.

We'll be pushing 250-260m income and probably a lower net spend on players.

However I still think we will need a prized asset sale - probably Luiz to balance the books comfortably. 

Can someone clarify are we allowed to deduct the 'investments' womens football, training ground from the losses?

Women's team definitely. I know the academy can be deducted. Training ground I would think so, because we always seem to spend on it!

[The Edge]

My head hurts after reading this thread. I know nothing about accounts I'm only an electrician. Are we in trouble and looking at points deductions this year or next?

No points this year. No points next year as long as we are smart which overall I think we have been.

We'll be pushing 250-260m income and probably a lower net spend on players.

However I still think we will need a prized asset sale - probably Luiz to balance the books comfortably. 

Can someone clarify are we allowed to deduct the 'investments' womens football, training ground from the losses?

Cheers.

[tomd2103]

Apologies in advance, but I find this all a bit difficult to follow.  Am I right in thinking that:

- This season is the 3rd year of the FFP period?  In year one we had a profit of £300k and the annual.accounts are showing that in year two we had a loss of £120m?

- The loss of £120m is the accounts figure and is not the FFP figure though as certain costs could be deducted from it?

- The third year will be up.to this June, so if we have breached the FFP rules, it will be next December / January when any punishment will be meted out?

- It's a rolling 3 year period,  so the £300k profit will come off after the next one and the £120m loss period will be 'year one'?