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Author Topic: FFP  (Read 500027 times)

Online kippaxvilla2

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Re: FFP
« Reply #3510 on: August 30, 2024, 01:41:26 AM »
I don’t think Vittoria could afford Diabys wages.

Online Demitri_C

  • Member
  • Posts: 12137
Re: FFP
« Reply #3511 on: August 30, 2024, 07:18:51 AM »
I don’t think Vittoria could afford Diabys wages.

What about timmy? Carlos? Moreno? Dobbin?

Online Demitri_C

  • Member
  • Posts: 12137
Re: FFP
« Reply #3512 on: August 31, 2024, 08:25:48 AM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Offline Ads

  • Member
  • Posts: 42852
  • Location: The Breeze
  • GM : 17.04.2024
Re: FFP
« Reply #3513 on: August 31, 2024, 08:45:58 AM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Broad answers:

They brought in about £350m more than us last season, this gives them wiggle room

They don't pay as higher wages as you'd assume, their current strategy is highly incentivised contracts, which clearly won't work out for the 14 players who don't make the squad.

They amortise the costs over the full 5 years, and longer prior to the rule change. Coupled with asset sales, they've been able to get the annual threshold.

The catch comes with; (i) the longer they're unsuccessful in making the top 4, the less they will generate, (ii) every year they make compliance harder by giving themselves less wiggle room. The average club has 80-90 years of accumulative contracts, Chelsea have 191. (iii) player sales are vital to their model. If they become less successful, their players value is likely to drop. (iv) the less successful they are the more they change their manager, adding redundant contract expenses (not meant in employees rights terms).(v) Rule changes around assets being acquired by different entities within the Group box them in.

Online Demitri_C

  • Member
  • Posts: 12137
Re: FFP
« Reply #3514 on: August 31, 2024, 11:09:20 AM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Broad answers:

They brought in about £350m more than us last season, this gives them wiggle room

They don't pay as higher wages as you'd assume, their current strategy is highly incentivised contracts, which clearly won't work out for the 14 players who don't make the squad.

They amortise the costs over the full 5 years, and longer prior to the rule change. Coupled with asset sales, they've been able to get the annual threshold.

The catch comes with; (i) the longer they're unsuccessful in making the top 4, the less they will generate, (ii) every year they make compliance harder by giving themselves less wiggle room. The average club has 80-90 years of accumulative contracts, Chelsea have 191. (iii) player sales are vital to their model. If they become less successful, their players value is likely to drop. (iv) the less successful they are the more they change their manager, adding redundant contract expenses (not meant in employees rights terms).(v) Rule changes around assets being acquired by different entities within the Group box them in.

Thanks ads. I would be curious to see what their wage bill is in comparison to us

You would imagine the gates are closing on them if they continue not getting CL and these loopholes wont be able to be exposed for much longer.

Offline Dogtanian

  • Member
  • *
  • Posts: 7584
  • Location: The Streets of Rage ( Tamworth )
  • GM : 06.06.2026
Re: FFP
« Reply #3515 on: August 31, 2024, 11:26:00 PM »
Aren’t they already struggling to get sponsorship deals at the price point they think they’re worth?

Offline Percy McCarthy

  • Member
  • Posts: 35608
  • Location: I'm hiding in my hole
    • King City Online
Re: FFP
« Reply #3516 on: September 01, 2024, 09:49:01 AM »

Online Demitri_C

  • Member
  • Posts: 12137
Re: FFP
« Reply #3517 on: September 01, 2024, 08:50:48 PM »
Forbes reporting on FFP:

https://x.com/espenstrand/status/1830026124572672057?s=46&t=GdM6cpVxe5IloByNCRheWA

Thanks percy. That is spot on by forbes.

Its a tough a one really because there does need to be some regulation otherwise newcastle would just spend 500m odd every summer and blow everyone out of the water.

But at same time they need to take into consideration CL clubs have had a heads start over the rest of us.

I think wage caps and squad size would help and that would stop this madness that chelsea are doing

Offline tony scott

  • Member
  • Posts: 800
  • Location: Kiama NSW
  • GM : 31.05.2020
Re: FFP
« Reply #3518 on: September 01, 2024, 09:18:32 PM »
Wage and squad size caps,plus a critical evaluation of the loan system.

Online Demitri_C

  • Member
  • Posts: 12137
Re: FFP
« Reply #3519 on: September 01, 2024, 09:32:02 PM »
Wage and squad size caps,plus a critical evaluation of the loan system.

Cannot believe there is no squad size cap. Thats just beggars belief

Online paul_e

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  • Posts: 37195
  • Age: 45
  • GM : July, 2013
Re: FFP
« Reply #3520 on: September 01, 2024, 09:41:04 PM »
Wage and squad size caps,plus a critical evaluation of the loan system.

There needs to be something on the commercial side if the aim is a fair and competitive league, the difference in income is far to big right now.

Online Dave

  • Member
  • *
  • Posts: 47553
  • Location: Bath
  • GM : 16.09.2025
Re: FFP
« Reply #3521 on: September 01, 2024, 11:07:26 PM »
Its a tough a one really because there does need to be some regulation otherwise newcastle would just spend 500m odd every summer and blow everyone out of the water.

But at same time they need to take into consideration CL clubs have had a heads start over the rest of us.

So what we need to do is find the sweet spot which stops Newcastle from spending hundreds of millions of pounds to help them consolidate their top four position last year, BUT allows us to spend hundreds of millions of pounds to help us consolidate our top four position this year?

Tricky one.

Offline PeterWithesShin

  • Member
  • Posts: 75757
  • GM : 17.03.2015
Re: FFP
« Reply #3522 on: September 01, 2024, 11:34:19 PM »
While not the fault of the current owners the reason we are so far behind some others is they spent the last decade plus being good while we spent it being shit. Now we aren't shit we can spend more than most of the rest of the league, is that fair on everyone else that can't spend what we can as a CL club? Yes, stop being shitter than us if you want to catch us up.

Online paul_e

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  • Posts: 37195
  • Age: 45
  • GM : July, 2013
Re: FFP
« Reply #3523 on: September 01, 2024, 11:45:35 PM »
While not the fault of the current owners the reason we are so far behind some others is they spent the last decade plus being good while we spent it being shit. Now we aren't shit we can spend more than most of the rest of the league, is that fair on everyone else that can't spend what we can as a CL club? Yes, stop being shitter than us if you want to catch us up.

That's the thing though, once the idea of a 'big 6' became entrenched being shit stopped being a problem for those teams, they can under-achieve for 3-4 seasons in a row and still have huge commercial revenue that gives them the chance to throw more and more money at it. For a team like us (and even Newcastle despite who owns them) you have to keep getting it right for the same 3-4 seasons if you want to start acting the same. Look at Leicester, they won a couple of trophies but  had a couple of bad windows and ended up relegated, whilst Man Utd and Chelsea have fucked up over and over again and still tick along because even if they waste £200-300m they'll just throw the same amount around the next window, and the next until they find something that works.

Offline PeterWithesShin

  • Member
  • Posts: 75757
  • GM : 17.03.2015
Re: FFP
« Reply #3524 on: September 02, 2024, 02:13:52 AM »
Rather than start a new thread I figured it fits in this one ok as we're talking about spending money badly


 


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