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

[Triggaaar]

Newcastle have lost £200,000 a day since the takeover

What sort of monster gives per day figures?

For everyone else, that's about 70 million a year.

 

[Seaview Seagull]

A very thoughtful thread illustrating the complexity of football finance. We may also have to factor in the impact of the forthcoming regulator which is another reason PL clubs are desperately trying to delay regulation.

 

[Perkino]

We have been playing by the rules, others haven't. We have made many astute decisions and ensured that we are financially viable. Buying young talent and selling potential superstars allows us to have quality around the first team squad and enables us to compete at a level. It will likely take decades to move through that level to the top tier of financial firepower.

Our model is brilliant and several clubs are in need of an overhaul as rotten to the core. Man Utd & Chelsea just two examples

 

[Neville's Breakfast]

This will build and build until the Premier League clubs vote to get rid of FFP. Only logical conclusion I can see. I'm certain there's already a majority of owners that want to spend more money, but FFP persists because it protects the status quo of the biggest clubs. Once they start getting punished or restricted in the market it will be out of the door.

I agree to an extent. When FFP was introduced they should have valued existing squads and weighted allowable spending accordingly. They could still do that and also bring in wage caps. To me all that matters is financial sustainability of clubs and breaking the financial power of celebrity footballers.

 

[Justice]

We have been playing by the rules, others haven't. We have made many astute decisions and ensured that we are financially viable. Buying young talent and selling potential superstars allows us to have quality around the first team squad and enables us to compete at a level. It will likely take decades to move through that level to the top tier of financial firepower.

Our model is brilliant and several clubs are in need of an overhaul as rotten to the core. Man Utd & Chelsea just two examples

Let’s not forget if TB couldn’t cover the losses in the past then where would we be and what would our squad look like today? It’s starting to pay of still a way to go.

 

[Berty23]

I really would not mind if the big six naffed off to the super league. Our league would continue and eventually their fans would be annoyed. We have a culture of away days for league matches in this country that don’t exist to the same extent elsewhere. It would soon become boring for them playing overseas all the time. Loads of the fun in football is banter with mates. That goes if you are different league.

 

[Bozza]

Interesting. Do you know if the charges will be announced publicly tomorrow?

The suggestion seemed to be we’d hear tomorrow/Monday, yes.

 

[A1X]

“Premier League champions by default…you’ll never sing that!”

 

[ElectricNaz]

I guess the question is, where would that balance go if the player was sold? If the player was not sold then what penalties would you impose? And what does this mean for that player and their rights?

Money still goes to the club. Just won't be able to be included within FFP calculations. In the same way that Chelsea won't have "spent" (for FFP) £115m on Caicedo in this year's accounts, for FFP purposes that's spread over 8 years (amortisation of the cost over the length of the contract), regardless of whether Chelsea paid us all the money up front or not. So it is possible.

And if the player isn't sold, they still have the initial points penalty / fine / cost of wages. It just stops clubs buying loads of young prospects, breaking FFP, in order to raise FFP wiggle room in future accounting years by selling players they shouldn't have been able to sign in the first place

Case in point: Everton if they sell Onana for a whack. They shouldn't have signed him because they couldn't afford him (as an example). They broke FFP. But then if they sell him for 50/60m, they're allowed to use that to offset the FFP they broke in the first place

 

[Jim in the West]

I really would not mind if the big six naffed off to the super league. Our league would continue and eventually their fans would be annoyed. We have a culture of away days for league matches in this country that don’t exist to the same extent elsewhere. It would soon become boring for them playing overseas all the time. Loads of the fun in football is banter with mates. That goes if you are different league.

Absolutely....I would imagine the bulk of fans from the "Big 6" (or 7) who actually attend matches would hate the idea of no Premier League footie. We can sometimes lump them all together as "plastics" or "glory-hunters", but for a big proportion of them their club is just as important to them as BHAFC is to us. And whilst it may seem great to be playing Barca or Juve every other week, how many are actually going to get on a plane regularly to watch them?

 

[ElectricNaz]

Let’s not forget if TB couldn’t cover the losses in the past then where would we be and what would our squad look like today? It’s starting to pay of still a way to go.

Covering losses within the official boundaries is far different from spending way above that. I think in our final two years in the Champ we lost something like 12m overall (covered by chairman) when there were teams in the Champ getting 4-6 times that a season in parachute payments alone

 

[Hamilton]

The suggestion seemed to be we’d hear tomorrow/Monday, yes.

I hope so, but they are not really known for acting with speed are they. Fingers crossed though.

 

[Milano]

Isn't this what we have been waiting for since FFP first appeared all those years ago? Bring it on, let the fun begin.

All of this ^^^

 

[dejavuatbtn]

I would also penalise them on a count back basis - work out the overspend and don’t allow any players purchased from the time they went overbudget to play.

 

[Harry Wilson's tackle]

Bloom has set up a sustainable model for us which we can be proud of but part of me thinks that FFP only serves to keep the traditional 'big clubs' at the top of the pile.

I feel comfortable with our approach and am eternally grateful for what Tony has done and is doing for us but part of me thinks if he felt inclined to spunk an extra half a billion of his own cash to help us compete for a title or top four push then why the hell shouldn't he be allowed to.

As long as an owner can demonstrate that their investment doesn't saddle their club with debt part of me feels a owner should be able to spend a load of cash without scrutiny.

Then we will create a perpetual hegemony of clubs owned by nation states, meaning that Citeh and Newcastle would buy all the trophies every season.

Why not bin the need for a 25 man squad while you're at it? Citeh and Newcastle could then buy all our players, and create satellite clubs they could franchise out. Milton Keynes Toon would be massive. I'm sure that Brighton City would catch on, too. Eventually.

Even in America they recognise the need to avoid monopolies with their draft system.

 

[Guinness Boy]

Saw smuggies press conference, he was almost crying when saying they probably can't spend any money this window.
after the Everton points deduction these teams are realising they need to be more careful.
Wonder how their owners feel having unlimited funds backing up.
Our model is looking better by the day.

Anyone else noticed Martin Samuels shilling for the Saudis and claiming Newcastle should be able to spend what they want 'because they have the money'?

Believe me, there are powerful people out there trying to remove FFP as a concept or, at least, change the rules.

 

[studio150]

What sort of monster gives per day figures?

For everyone else, that's about 70 million a year.

No, for those that prefer accurate figures it's £73m.

No wonder some clubs are in a mess if £3m can just be over looked, and therefore the loss understated

 

[Triggaaar]

No, for those that prefer accurate figures it's £73m.

No wonder some clubs are in a mess if £3m can just be over looked, and therefore the loss understated

Are you sure that £200k per day was precise, and not rounded?

 

[Brian Fantana]

@Bozza - what time/show was this on? I’d like to listen back on BBC Sounds.

 

[Bozza]

@Bozza - what time/show was this on? I’d like to listen back on BBC Sounds.

5Live whilst I was taking my son to scouts last night, so 7:15-7:45ish...

5 Live Sport - The Friday Football Social - 12/01/2024 - BBC Sounds

Darren Fletcher looks ahead to this weekend's football. Plus updates of Burnley v Luton.

www.bbc.co.uk