FFP

[algy]

I've not looked in to the figures at all, but I'd be flabbergasted if we've spent 4 years in the Premier League with Purslow at the helm for much of that, yet have no idea how to balance the books for FFP.

[Percy McCarthy]

Posted this in the Diaby thread, more appropriate in here:

According to the accounts we only spent sixty-odd million in the last TWO transfer windows. I think there must be a few clauses in the reported fees for Torres and Diaby.

EDIT: Since the reporting period, £67.9m spent, £40.3m in sales. Better than I would have expected.

How are outgoing transfer fees accounted for? The money leaves us over the length of the contract signed doesn’t it? So is that accounted for in one hit or as a ‘future liability’ in the accounts?

As far as I understand, it’s the fee that is amortised over the length of the contract. The actual payments are a matter of negotiation I assume, hence Risso’s mention of contingent liabilities.

[Risso]

Posted this in the Diaby thread, more appropriate in here:

According to the accounts we only spent sixty-odd million in the last TWO transfer windows. I think there must be a few clauses in the reported fees for Torres and Diaby.

EDIT: Since the reporting period, £67.9m spent, £40.3m in sales. Better than I would have expected.

How are outgoing transfer fees accounted for? The money leaves us over the length of the contract signed doesn’t it? So is that accounted for in one hit or as a ‘future liability’ in the accounts?

As far as I understand, it’s the fee that is amortised over the length of the contract. The actual payments are a matter of negotiation I assume, hence Risso’s mention of contingent liabilities.

Correct. The contingent liability will be the stuff like "another £5m if Villa qualify for the Champions League", or X amount of games played etc.

[tomd2103]

It would be good if all FFP figures/adjustments were a matter of public record.

Agree.  The media do not help as they’re quoting ‘accounting’ losses and then saying that clubs can lose £105m over three seasons.  They're linked but they’re not the same.

Surefire way of getting clicks from the local anti-Villa obsessives though.

[Drummond]

Grealish can get fucked.

[sewiek]

On Joey Barton's podcast Keiran Maguire stated that the £105m figure was agreed in 2013. So clubs costs have skyrocketed whilst the losses are stuck in a figure agreed 11 years ago. Wages gone up, cost of players gone up, running costs, gas, electricity and water all gone up, food costs, catering costs, academy costs gone up, but you have to stay within an 11 year old agreed limit. There's the issue with FFP/PSR. Whilst financial costs have changed and gone up in an ever accelerated rate, it's been stuck in the past.

[PeterWithe]

I realise I might be a bit of an outlier here, but maybe a lot of the owners don't want to lose even more money?

[LeeB]

I realise I might be a bit of an outlier here, but maybe a lot of the owners don't want to lose even more money?

You can just imagine Doug with a system in place that meant he didn't have to spend but couldn't be blamed for it, would've been all of his Christmases at once.

[PeterWithe]

Its absolutely mad isn't it, we have just lost £120m, we've looked down the back of the sofa and in that jacket we wore last week but no, its gone. And we want the rules changed so we can lose more.

Crackpot.

[Sexual Ealing]

On Joey Barton's podcast

You lost me at this point.

[Baldy]

Just saw on news, it is quite likely Leicester CXity broke FFP rules in their last season in Premier League.

If they get promoted, could be deducted points next season. 

[Stu]

It’s a fucking farce

[VinnieChase84]

There’s a meeting in June regarding FFP and it’s “future”
It’s beyond clear current system isn’t fit for purpose

One proposed format is a % of wage turnover with clubs lower down in the league having a greater percentage and then on a sliding scale it’s reduced as you move “up” the league

[pauliewalnuts]

There’s a meeting in June regarding FFP and it’s “future”
It’s beyond clear current system isn’t fit for purpose

Yeah, that's pretty clear really.

[Percy McCarthy]

On Joey Barton's podcast

You lost me at this point.

I’m surprised Maguire is so desperate for clicks & views.