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

[BBassic]

Whilst not wishing to encourage people to read the Daily Mail...

Premier League eyeing ABOLISHING points deductions and introducing an NBA-style 'luxury tax' over fears top stars will leave if rules restrict their pay - after Everton and Nottingham Forest lost points​

 

[Bob!]

What is an NBA style luxury tax please?

 

[Hamilton]

What is an NBA style luxury tax please?

Got a feeling that it involves paying people off.

 

[Joey Jo Jo Jr. Shabadoo]

What is an NBA style luxury tax please?

In the NBA there is a salary cap, but clubs can exceed this, however the luxury tax hits if they go over a certain threshold, They pay $1 for every dollar they are over this threshold. I'm guessing in the PL it would be a fee if wages go above a certain % of revenue rather than a salary cap. Other American sports like Major League Baseball adopt a similar system.

For reference the latest figures I can find shows that in the 22-23 season nine NBA clubs exceeded their caps and paid over $630m in fees between them.

 

[Seecider]

A defensive midfielder please.

Ask 2 accountants a question and always get at least 3 different answers

 

[deletebeepbeepbeep]

In the NBA there is a salary cap, but clubs can exceed this, however the luxury tax hits if they go over a certain threshold, They pay $1 for every dollar they are over this threshold. I'm guessing in the PL it would be a fee if wages go above a certain % of revenue rather than a salary cap. Other American sports like Major League Baseball adopt a similar system.

For reference the latest figures I can find shows that in the 22-23 season nine NBA clubs exceeded their caps and paid over $630m in fees between them.

So basically a money making exercise for the FA and no punishment at all for the Clubs which basically have an endless well of other people's money (City/Chelsea/Newcastle).

 

[Milano]

If (and it's a big IF) this were to be introduced now then I would truly hope that those clubs that have kept within the rules would take this to the highest court possible. This would essentiallly destroy competition from anyone not already in the fat cat trough. I wish these feckers had just pissed off to their 'super league' and taken their entitled, plastic fans with them.

 

[BNthree]

The article on this I saw said the money taken as fines/tax is then distributed to the clubs that haven’t breached the thresholds.

 

[Weststander]

Ask 2 accountants a question and always get at least 3 different answers

Each at great cost

 

[Joey Jo Jo Jr. Shabadoo]

So basically a money making exercise for the FA and no punishment at all for the Clubs which basically have an endless well of other people's money (City/Chelsea/Newcastle).

There are further fines for repeat offenders, so the more times you break the rules the more money you are fined. There are also some restrictions on player trading being brought in as well by the looks of things.

Over in the US this isn't a money making exercise for the leagues with most of the money being distributed (sport dependent) into various player benefit funds, league run pension pots, given to clubs that haven't broken the rules and is used to fund some of the revenue sharing schemes (which does mean offending clubs get a small % of their fine back). You'd hope the Premier League would follow some of the distribution above, or better yet pass it on to the lower league/grass roots football.

 

[Bob!]

There are further fines for repeat offenders, so the more times you break the rules the more money you are fined. There are also some restrictions on player trading being brought in as well by the looks of things.

Over in the US this isn't a money making exercise for the leagues with most of the money being distributed (sport dependent) into various player benefit funds, league run pension pots, given to clubs that haven't broken the rules and is used to fund some of the revenue sharing schemes (which does mean offending clubs get a small % of their fine back). You'd hope the Premier League would follow some of the distribution above, or better yet pass it on to the lower league/grass roots football.

So, the rich clubs with endless money can overspend, and by overspending they get to spend more money as a fine.

But they still have endless money.

 

[Vicar!]

No action will be taken against the top six, the excuse will of course be to avoid them decamping to the 'super league'. If that is the case let them go. I expect Villa and Newcastle to follow.

 

[Tony Le Mesmer]

So, the rich clubs with endless money can overspend, and by overspending they get to spend more money as a fine.

But they still have endless money.

Exactly. it will just be a cost of running the business.

This whole scheme smacks of corruption by moving the goal posts. You shouldn't penalise clubs by one mechanism (points deduction) then the following season change the penalty to incur a financial cost instead

 

[El Presidente]

Ask 2 accountants a question and always get at least 3 different answers

…plus VAT

 

[Berty23]

Anyone else bored of people comparing us to Southampton. Today I was at the dentist in leamington spa - he was a Liverpool fan. He asked about my team and when I said Brighton he straight away said this season showed we are going to be like Southampton. Obviously it is tricky to explain while a man is shoving sharp implements around your mouth but he was very happy with the comparison and also very happy that Liverpool has made Alexis a baller. I tried explaining our injuries but he was not having it.

I have never liked the dentist but now I hate them even more.

 

[Flounce]

So basically a money making exercise for the FA and no punishment at all for the Clubs which basically have an endless well of other people's money (City/Chelsea/Newcastle).

I am also interpreting this as you can pay whatever you like as long as you pay the fine over the limit, which all the clubs you have mentioned would grab with both hands as it lets them carry on as before which I thought we were trying to stop

Question - do the PL clubs get to vote on this, if so, I can’t see any club that hasn’t got bottomless funds agreeing to it, sounds like the Big boys have been handing out brown envelopes to whoever came up with this plan.

Maybe it’s all gone over my head.

 

[SAC]

I would imagine any change would need to be voted in as usual. Are there 6 clubs who would vote against it? I suspect that it would be close.

 

[Beanstalk]

Anyone else bored of people comparing us to Southampton. Today I was at the dentist in leamington spa - he was a Liverpool fan. He asked about my team and when I said Brighton he straight away said this season showed we are going to be like Southampton. Obviously it is tricky to explain while a man is shoving sharp implements around your mouth but he was very happy with the comparison and also very happy that Liverpool has made Alexis a baller. I tried explaining our injuries but he was not having it.

I have never liked the dentist but now I hate them even more.

Completely. Mainly because I think it shows a complete denseness from the person making that claim. They see one similarity and all things must then be true.

There is an argument that Southampton were run similar to us for a while, they scouted well, invested in the academy and created a pathway to the first team, hired interesting progressive managers and were, for the most part, well run. They were however, owned by a family with zero connection with the club, whose ultimate aim was to make money. When Katharina Liebherr sold 80% of the club to the Gao family, her father's original investment had increased by approximately 1500%. The Gao family ran the club terribly - it was a miracle they didn't get relegated sooner.

We have all of the positive first part, and an owner who regularly states he isn't in it for profit (as his actions have shown) and has no plans of going anywhere. There is absolutely zero evidence that we are going to fade into a perennial relegation battle as things stand.

 

[Sirnormangall]

Anyone else bored of people comparing us to Southampton. Today I was at the dentist in leamington spa - he was a Liverpool fan. He asked about my team and when I said Brighton he straight away said this season showed we are going to be like Southampton. Obviously it is tricky to explain while a man is shoving sharp implements around your mouth but he was very happy with the comparison and also very happy that Liverpool has made Alexis a baller. I tried explaining our injuries but he was not having it.

I have never liked the dentist but now I hate them even more.

Report him to the dentists regulatory body for causing unnecessary pain and suffering.

 

[Seaview Seagull]

Exactly. it will just be a cost of running the business.

This whole scheme smacks of corruption by moving the goal posts. You shouldn't penalise clubs by one mechanism (points deduction) then the following season change the penalty to incur a financial cost instead

It won't work for clubs who play in European competitions because the their system is to be based on wages % of turnover.