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[Football] The ticking Profit and Sustainability (FFP) timebomb...







Nobby Cybergoat

Well-known member
Jul 19, 2021
8,608
Chelsea finances worse than expected 😁




Sounds good.

I'm a bit of a dunce with this, so should I read that if they are amortising £200m per year, they need to make £95m profit from other sources, I guess day to day profit and player sales, each year to avoid PSR sanctions?
 


nwgull

Well-known member
Jul 25, 2003
14,516
Manchester
There should be a standard rule for every £1m over FFP limits in the 3 year period, then 1 point is deducted. Then everyone would know where they stood. Simples.
Everton were ulitmately deducted 6 points for a 20m excess. I wouldn't be surprised if that becomes a precedent - ie 1 point for every 3.33m overspend.
 




Weststander

Well-known member
Aug 25, 2011
68,966
Withdean area
Sounds good.

I'm a bit of a dunce with this, so should I read that if they are amortising £200m per year, they need to make £95m profit from other sources, I guess day to day profit and player sales, each year to avoid PSR sanctions?

It's more complicated than that e.g. it's combined with other club income and operating expenses to give the overall loss for the year.

But you can say that the sheer magnitude of the Chavs annual amortisation as a cost; £406m we can see in 2022/23 and certainly at least £228m a year moving forward (£1,140,595 / 5) but probably far more due to the later buys of Lavia and Caicedo for example, has given CFC a near impossible job of meeting P&S and FFP.

Unless, each year they sell a couple of homegrown players for huge fees. Homegrown because the proceeds are all profit.

If they sold a Caicedo or Fernandez for the around the fee they bought them or less, it wouldn't help greatly in P&S / FFP accounting terms.
 








Kinky Gerbil

Im The Scatman
NSC Patron
Jul 16, 2003
58,718
hassocks
You've got to hand it to Bloom, FSG and Lewis/Levy.

They run their clubs within the rules.
For all the bleating of the cheats, just look at the states of their squads and transfers

Everton gave Arsenal, 50 million plus for Walcott and Iwobi 😂

It's a mystery why they went over the limits.

Brighton/Liverpool/Arsenal/Spurs have shown you can grow a club, increase revenue streams and stay within the rules.

Those above clubs have also had to sell top players to reinvest.
 




Nobby Cybergoat

Well-known member
Jul 19, 2021
8,608
This should be a huge opportunity for us. Clubs that simply have to sell by a certain deadline or face points deductions are in no position to drive a hard bargain. We could pick up some really good players for reasonable prices.
Basically only Colwill and Gallagher who they can sell to help them out of trouble?

Interesting though that Chelsea need the sale by the end of June. Buying teams will be looking through their options around that time, maybe seeing who is making their name in the euros. It would be a mug club prepared to offer the sort of money Chelsea need by then.
 


Acker79

Well-known member
NSC Patron
Nov 15, 2008
31,921
Brighton
This should be a huge opportunity for us. Clubs that simply have to sell by a certain deadline or face points deductions are in no position to drive a hard bargain. We could pick up some really good players for reasonable prices.
We will need those players to be willing to sign for us, which is where our wage restrictions will put players off, especially those used to much higher wages at Chelsea.
 


jcdenton08

Offended Liver Sausage
NSC Patron
Oct 17, 2008
14,140
But whoooo could’ve possibly seen this coming?!

Boehly, according to Chelsea fans at the time, was a financial genius who found a brilliant secret loophole to get around FFP.

It’s simple! Buy the best players in the world who are 100% guaranteed not to flop, paying whatever it takes, BUT - here’s the clever bit - spread the cost across eight seasons!

It’s a double win!!! That way, in FFP accounting the cost is spread across a long amortisation period, AND you get the benefit of having the likes of Cucurella, Mudryk, Caicedo, Jackson, Sanchez and all their other world class star players on 8 year deals!

It’s genius because it all but guarantees nobody will want to sign them and match their ridiculously long and expensive contract, meaning they get to stay at Chelsea and keep bringing the continued success they’ve brought to the club, without fear of losing them!

Absolutely genius!!! Why has nobody else done this?!
 




Kinky Gerbil

Im The Scatman
NSC Patron
Jul 16, 2003
58,718
hassocks
Basically only Colwill and Gallagher who they can sell to help them out of trouble?

Interesting though that Chelsea need the sale by the end of June. Buying teams will be looking through their options around that time, maybe seeing who is making their name in the euros. It would be a mug club prepared to offer the sort of money Chelsea need by then.

From memory when I looked at contract length of the youth teamers they all run for years and pay a high wage, with the exception of Gallagher.

If you are a youngster, you are not giving that up, you are not getting that elsewhere.

At best they will go on loan

No one sensible is paying anything decent for James, a great player when fit, but he's never fit

They still have Lukaku coming back.
 


Weststander

Well-known member
Aug 25, 2011
68,966
Withdean area
For all the bleating of the cheats, just look at the states of their squads and transfers

Everton gave Arsenal, 50 million plus for Walcott and Iwobi 😂

It's a mystery why they went over the limits.

Brighton/Liverpool/Arsenal/Spurs have shown you can grow a club, increase revenue streams and stay within the rules.

Those above clubs have also had to sell top players to reinvest.

The others haven’t played ball, through cheating or incompetence or boxing themselves into a hole through jam today impatience.
 
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Weststander

Well-known member
Aug 25, 2011
68,966
Withdean area
This should be a huge opportunity for us. Clubs that simply have to sell by a certain deadline or face points deductions are in no position to drive a hard bargain. We could pick up some really good players for reasonable prices.
Chelsea
Forest
Wolves

Have to sell players this summer, according to various reports.
 










GT49er

Well-known member
NSC Patron
Feb 1, 2009
48,964
Gloucester
This should be a huge opportunity for us. Clubs that simply have to sell by a certain deadline or face points deductions are in no position to drive a hard bargain. We could pick up some really good players for reasonable prices.
Ah, but therein lies the big snag, both for us and for Chelsea. Chelsea won't be able to push for full market price, but might be reluctantly willing to sell at a cut price through sheer necessity.
We might be willing to pay that cut price, bit the player might not agree to come to us for half - or even a third or a quarter - of their existing wage. So we don't get a bargain, and Chelsea have to go on paying them several £million a year......... and of course, Chelsea paying off their contract so the player could 'afford' to live on £40 or £50K a week for three or four years wouldn't help their FFP situation.

It really is a lose-lose situation - even the player will lose by having to stay at Chelsea for five or six years!
 




Nobby Cybergoat

Well-known member
Jul 19, 2021
8,608
Ah, but therein lies the big snag, both for us and for Chelsea. Chelsea won't be able to push for full market price, but might be reluctantly willing to sell at a cut price through sheer necessity.
We might be willing to pay that cut price, bit the player might not agree to come to us for half - or even a third or a quarter - of their existing wage. So we don't get a bargain, and Chelsea have to go on paying them several £million a year......... and of course, Chelsea paying off their contract so the player could 'afford' to live on £40 or £50K a week for three or four years wouldn't help their FFP situation.

It really is a lose-lose situation - even the player will lose by having to stay at Chelsea for five or six years!
Just say we, (and I don't think we will) did go and buy Colwill off them for £40m

That would be the least excited I have got over a big signing, just because it's helping that lot out of trouble
 


GT49er

Well-known member
NSC Patron
Feb 1, 2009
48,964
Gloucester
Just say we, (and I don't think we will) did go and buy Colwill off them for £40m

That would be the least excited I have got over a big signing, just because it's helping that lot out of trouble
So how big a pay cut do you think Colwill would take? £50K a week? £100K?
 
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