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

[Triggaaar]

The Premier League used to be a cosy (and dull, which is rich coming from me I acknowledge ) duopoly of Manchester United and Arsenal.

You're not dull babe, despite your pretence

 

[Triggaaar]

Fearful of not being guaranteed Champions League positions the elite created FFP, giving lip service to financial cost control but in reality trying to create a model that prevented ANOTHER Chelsea or Manchester City arising.

How were such few clubs able to do that?

When Leicester had the temerity to win the Premier League in 2016, the response of the Sneaky Six was to change the financial distribution rules to tilt the money more in favour of themselves

Can you remind us exactly how the financial distribution changed, and again, how such a small group were able to do it - what happened to clubs voting?

The threat of creating/joining a franchise league was used to make the ‘Other 14’ cave into the demands of the elite.

How did that threat work given that the fans (of even the big clubs) all rejected the franchise? It landed so badly I'd have imagined they ended with less power rather than more.

But that wasn’t enough, as we saw with the Frankenstei’s monster that was Project Big Powergrab, which would have resulted in voting rights, control and decision making in the whole of football being effectively transferred to just six clubs.

That was project big picture wasn't it (I appreciate your designation is more accurate) - but that failed, so why would similar be more likely to succeed next time?

John Henry is a very smart guy, why else would his young wife marry the 74 year old commodities trading billionaire?

You are Mrs Merton and I claim my £5. The SL won't work if the fans stay together like last time.

 

[drew]

I know that the general sentiment is to not help out the teams on the FFP brink (by buying their players) but given our strong position FFP wise, are there any players in those clubs who 'need to sell' that we might consider a impertinent bid for?

Wages! Those players will be on different wage structures and would be unlikely to come here to a lower wage and we aren't going to change our wage structure to accommodate them. If you're getting paid a fortune are you going to take a wage cut to help Chelsea out?

 

[Perkino]

As much as our balance sheet is in order, does the sudden reluctance to spend and spend big by the usual suspects have a detrimental impact to our business model down the line?

Not really, buy young established players for less than £10m each and play them in the first team squad. Those who flourish are sold for £50m+ and those who struggle move on usually for a similar fee to when we purchased them.

The crippling debt comes in when clubs start offering £100k+ per week contracts to all their players. As long as we keep to our core beliefs the market around will crash and we will find ourselves with many top level players staying for 4/5 years rather than just 2/3 years but tye best players will eventually be tempted elsewhere for big wages

 

[drew]

FFP has never been, and was never intended to be, a level playing field. UEFA state as much themselves on their website.

The Premier League used to be a cosy (and dull, which is rich coming from me I acknowledge ) duopoly of Manchester United and Arsenal. Abramovich came along and was a disruptor with his wealth in 2003, making it a three horse competition, Mansour then did the same in 2008.

Fearful of not being guaranteed Champions League positions the elite created FFP, giving lip service to financial cost control but in reality trying to create a model that prevented ANOTHER Chelsea or Manchester City arising. Everton tried it to a degree (owner out in £750m in 5 years, where his money comes from is not for public consumptio) but then had to slam on brakes, albeit too late, due to PSR. Newcastle are now finding the same.

When Leicester had the temerity to win the Premier League in 2016, the response of the Sneaky Six was to change the financial distribution rules to tilt the money more in favour of themselves, making it even more difficult for smaller clubs, such as Crystal Palace for example, to not only win things, but more importantly qualify for CL which is worth up to £150 million in a season. The threat of creating/joining a franchise league was used to make the ‘Other 14’ cave into the demands of the elite.

But that wasn’t enough, as we saw with the Frankenstei’s monster that was Project Big Powergrab, which would have resulted in voting rights, control and decision making in the whole of football being effectively transferred to just six clubs.

The failure of SuperLeague has left the elite licking their wounds, they are used to getting their own way. The likes of the Glazers and John Henry are just biding their time, trying to find an alternate route to getting what they want by persuading their fans that if SL is set up then their clubs will be less competitive unless they join it. John Henry is a very smart guy, why else would his young wife marry the 74 year old commodities trading billionaire?

The Premier League is at war with itself, which is why Masters and Parry are being grilled by politicians this week. The ‘New Deal’ which would see a modest increase in money being transferred from PL to EFL has not been signed off, and the £88m of extra interim funding for this season withheld whilst PL clubs squabble over how the money will be split between the 20.

Two questions arise from that.
1. Is the EPL better off with PSR or would it be better to have no financial controls?
2. If not PSR, what would you suggest to prevent owners with a bottomless pit of money from buying every competition?

 

[Motogull]

By punishing Everton with a 10 point deduction, a precedent may have been set. I would suggest that a breach means you get no points that season, so down you go later.

If Everton get done again, it should be a double penalty, so a 20 point deduction.

You've got to put the willies up naughty clubs.

Typical Jammy Palace seeing a couple of clubs below them likely lose points.

 

[Weststander]

Dreadful article in the ST today by Martin Samuels, who I am beginning to loathe.

The gist it is because the rules are going to change in 8 months time, all the cheats should be let off for past misdeeds.

Yes mate...

He’s wanted a financial free for all from day one, a huge fan of Mansour and he refuses to condemn their illicit financial dealings. Imho this has always been because he’s West Ham, seeing a change of ownership one day propelling them to the top.

 

[Motogull]

Derby

So why haven't Companies House struck them off? Or have they filed there but not with the football authorities?

 

[Neville's Breakfast]

So why haven't Companies House struck them off? Or have they filed there but not with the football authorities?

They should also be suspended from the EFL until such time as they have filed accounts.

 

[The Grockle]

What's Aston Villa's financial position in terms FFP? It astonishes me that our turnover is similar, if not higher yet they are able to spend double what we do in wages?

 

[Kinky Gerbil]

What's Aston Villa's financial position in terms FFP? It astonishes me that our turnover is similar, if not higher yet they are able to spend double what we do in wages?

On the edge I believe.

 

[The Grockle]

On the edge I believe.

Wasn't knocking what they're achieving but their financial situation must be somewhat precarious!

 

[El Presidente]

So why haven't Companies House struck them off? Or have they filed there but not with the football authorities?

The owner initially used FFP as an excuse not to file them, then hid behind Covid when corporate governance was not a priority…then put the club into administration

 

[Motogull]

The owner initially used FFP as an excuse not to file them, then hid behind Covid when corporate governance was not a priority…then put the club into administration

Okay, I think. So a 'Zombie' club legally speaking?

 

[Weststander]

So why haven't Companies House struck them off? Or have they filed there but not with the football authorities?

HMRC can block that and very often do.

 

[Stat Brother]

Wasn't knocking what they're achieving but their financial situation must be somewhat precarious!

They've basically spent all the Grealish money without selling on.
That said they do have a bus load of home grown talent, so they can easily make a huge dent in their liability, with just a couple of sales.

 

[London Pompous]

He’s wanted a financial free for all from day one, a huge fan of Mansour and he refuses to condemn their illicit financial dealings. Imho this has always been because he’s West Ham, seeing a change of ownership one day propelling them to the top.

Remind me who his son works for?

 

[Kinky Gerbil]

Everton + Nottingham Forest expecting to be informed on Monday that they’ve been found in breach of PL profitability & sustainability rules for 3yr cycle to June 2023. Both have prepared mitigation & will launch robust defences
@TheAthleticFC
#EFC #NFFC

 

[GrossTurn]

What's Aston Villa's financial position in terms FFP? It astonishes me that our turnover is similar, if not higher yet they are able to spend double what we do in wages?

Not seen a recent chart but I think their turnover is likely a fair bit higher than ours owing to commercial revenue (primarily sponsorships). Struggling to find anything to back this up, mind, so might be mistaken..

 

[Hugo Rune]

Wasn't knocking what they're achieving but their financial situation must be somewhat precarious!

If they are not on the list, it must be the Grealish millions getting them off the FFP hook.