[Football] Middlesbrough taking legal action against Derby - FFP

[Coldeanseagull]

A handle? A latch, maybe? A doorman, perhaps, if you are privileged. There again I’ve never tried opening a door with my knob, far too painful.

depends who is on the other side of the door, I s'pose

 

[Harry Wilson's tackle]

There does seem to be an inconsistency in the FFP rules regarding selling the stadium. A club can spend hundreds of millions on their stadium and training facilities, and this is exempt from the FFP calcs. And this is one of the reasons why BHA didn’t fall foul of FFP rules, despite accounts submitted to companies house indicating that we’d overspent. However, selling the stadium seems to count as income as far as FFP is concerned. What’s to stop a chairman selling the ground to himself one year and then the club buying it back the next?

Two lots of VAT

 

[Creaky]

It's a good point, shows you how farcical FFP is

Is, and always has been farcical in my opinion, especially in the lower leagues.

Why discourage owners from investing, (and I mean investment not loans), in the team?

 

[SollysLeftFoot]

Middlesbrough can just **** off. I honestly cannot stand their club, it’s just a reading with a bit more history and that’s it. They just make up the numbers and no one really cares enough.

 

[beorhthelm]

Two lots of VAT

though no VAT on financial transactions. the answer is transactions and deals have to be commercial or market rate. wouldnt make a net profit selling ground back and forth. why they dont have a new shirt/stadium "deal" every year for a few more hundred million, not commercially viable. though they do push the boundry of this with some deals, and inflate the market with deals elsewhere.

 

[Surrey Phil]

FFP must be scrapped - no-one seems to properly understand it, least of all the fans. Wolves losing £60m+ in the Championship last season being a prime example.

 

[Weststander]

Two lots of VAT

On the property transferring.
The companies can be in a VAT group, so no VAT is charged.

Similarly, Stamp Duty Land Tax is avoided if the companies are at least 75% owned by the same person.

(These are land transactions, not financial).

 

[drew]

FFP must be scrapped - no-one seems to properly understand it, least of all the fans. Wolves losing £60m+ in the Championship last season being a prime example.

That's fine but what will you do to replace it to ensure clubs don't mismanage their finances and end up in admin, leaving creditors screwed.

 

[Acker79]

That's fine but what will you do to replace it to ensure clubs don't mismanage their finances and end up in admin, leaving creditors screwed.

I don't know if this would work, but how about if owners wish to invest in their clubs, they have to go the whole hog. You can't sign someone for £xm to be paid over the four years of their contract + £xK per week in wages with the intent to pay the difference at the end of the year, but just walk away when things change. Either pay up all in one go and/or the funding for every investment (e.g. new stadium builds, training grounds etc), player signing (+ wages), must be put into an account or trust of some sort. Every time a new contract is signed, this is topped up accordingly. Then if the owner walks away, or the club is relegated and their income drops, the money is there to pay wages, etc. without eating into the reduced income that would be used for other bills.\

I think there also needs to be something about not being allowed to charge interest (or interest above x%), and not being allowed to take payment for investment unless the income allows for it, and not allowed to take payment for investment after you've sold the club.

 

[T.G]

Schadenfreude �� revelling in others misfortune

 

[FatSuperman]

A handle? A latch, maybe? A doorman, perhaps, if you are privileged. There again I’ve never tried opening a door with my knob, far too painful.

Reminds me of the absolute best spam email I ever received, the title was simply 'Knock down walls with your cock'. Genius.

 

[mikeyjh]

That's fine but what will you do to replace it to ensure clubs don't mismanage their finances and end up in admin, leaving creditors screwed.

But if that is its goal, it does't work - Clubs that don't fall foul of FFP can still mismanage their finances to such an extent they end up in admin, whereas there are clubs that do breach FFP and have no issue with admin. The allowable losses appear don't have any relationship with the financiers tolerance to those losses.....

 

[drew]

But if that is its goal, it does't work - Clubs that don't fall foul of FFP can still mismanage their finances to such an extent they end up in admin, whereas there are clubs that do breach FFP and have no issue with admin. The allowable losses appear don't have any relationship with the financiers tolerance to those losses.....

It's not perfect but, without checking the records, there seems to be far fewer teams entering admin which is a step forward.