Hypothetical question re: FFP and transfer fees we might receive this month

[Ernest]

FFP is a waste of time all the time the rules have so many holes in them to be abused. Either make it binding and the rules so tight that any breach means that they will not be promoted the season they fail FFP or just don't bother and let natural wastage sort things out and if teams go into admin simply boot them out of the league

 

[Machiavelli]

1:No depreciation on the stadium was charged last year, but in this year's accounts it will be £4-5 million (doesn't count for FFP though).

2: We gave contracts to ex-Prem players in the form of PIG, Bridge and Upson, even if we paid 10% of Bridge's City salary it is still £9,000 a week. In addition to that we had a number of existing players sign new contracts. All of the above would push up the wage bill. We also signed Ulloa for £2 million, and his wages will kick in.

3: There is a possibility (no one knows for sure) that the management team who were dismissed may have received a payoff.

4: Some costs in relation to the training ground could have been charged against profits.

5: Losses on the sale of Harley.

Thanks. It's 1 that's worrying, although you seem to be suggesting that when the accounts are revealed, they'll be two amounts, one relevant to FFP, and one not. I'm not as convinced by by especially 2, 3 and 5, as Bloom said that the playing budget will remain the same. Meanwhile Barber claims he's made savings of £2m on last year, and there is increased revenue this year compared to last from higher attendances (with related extra expenditure) and improved advertising and sponsorship deals.

 

[El Presidente]

Thanks. It's 1 that's worrying, although you seem to be suggesting that when the accounts are revealed, they'll be two amounts, one relevant to FFP, and one not. I'm not as convinced by by especially 2, 3 and 5, as Bloom said that the playing budget will remain the same. Meanwhile Barber claims he's made savings of £2m on last year, and there is increased revenue this year compared to last from higher attendances (with related extra expenditure) and improved advertising and sponsorship deals.

I agree Paul Barber has made savings, but those won't come through until the year ended 30 June 2014. Remember the accounts produced will be for the year ended 30 June 2013.

If I was the Albion I would bring forward as many expenses as possible into the accounts, as it's the ones for 2014 that have transfer embargo implications.

 

[B.W.]

I think the training ground costs don't count for FFP.

 

[spongy]

Correct me if I'm wrong but I thought the losses allowed for FFP were staggered, so £8m year 1, £5m year 2 and £0m year 3?

So has PB got us running in profit or are we still losing money but not enough so we don't comply with FFP?

Ie, are we losing £5m this year? Or are we running a profit and ready to be a profitable business for when our losses can be £0??

 

[Machiavelli]

I agree Paul Barber has made savings, but those won't come through until the year ended 30 June 2014. Remember the accounts produced will be for the year ended 30 June 2013.

If I was the Albion I would bring forward as many expenses as possible into the accounts, as it's the ones for 2014 that have transfer embargo implications.

Thanks again. I was assuming the accounts were for 2013-14 tax year, so well done for putting me right on that front.

 

[El Presidente]

I think the training ground costs don't count for FFP.

Lots of costs don't count for FFP, including infrastructure and youth development.