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[Football] The ticking Profit and Sustainability (FFP) timebomb...
- Thread starter Bozza
- Start date
Garry Nelson's Left Foot
Well-known member
Apologies if it's been asked before but what's the difference between Chelsea selling itself it's hotels and man city paying itself inflated sponsorship?
Chelsea and Villa seemingly helping each other out with this season's financial shortfalls - £19m for an academy player
They're all helping each other get round it. Dobbin going to Villa from Everton for £9m, Iroegbunam going the opposite way for the same fee, Maatsen going to Villa from Chelsea for £35m, all conveniently youth players so pure profit in the books, all conveniently going through before the PSR deadline. Duran also supposedly going to Chelsea from Villa for £40m, Villa making a £25m profit after his three PL starts last season. The same scummy clubs backing Man City making a mockery of the rules, again, I'm just surprised Forest aren't involved yet.
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Did I miss something, have Man City been let off all charges?
Garry Nelson's Left Foot
Well-known member
Not as far as I'm aware.
They are currently undertaking legal action against the Premier League with a view to getting that outcome. They may well win.
About three weeks ago a well known broadcaster asked a DULLARD to write a financial summary of six clubs, Forest, Everton, Newcastle, Villa, Chelsea and Leicester, looking at how urgently (if at all) those clubs might have to sell player(s) before 30 June financial year end for the 23/24 accounts.
The article was published and got some attention, but was then deleted because one of those clubs threw a hissy fit.
Five of those clubs now appear to be involved in giant circle jerk/player swap arrangements which may result in beneficial consequences for PSR calcs.
It works like this:
Club AV has a player called Toad who isn’t a regular. Would normally looking to sell him for £8m
Club CFC has a player called Le Bon who isn’t a regular. Would normally be looking to sell him for £10m
Both are academy players so the sale price represents pure profit of £8m and £10m. These profits are taken to the accounts immediately.
if the players are swapped there is a cash adjustmemt of £2m from Club AV to CFC, and still book the profits.
However, if a swap deal is made then nothing to stop the ‘official’ price of Toad to be £28m and that of Le Bon £30m. This way there is still a cash payment of £2m, but the profits in the accounts are £28m and £30m.
The additional cost of both players is then spread over the contract life of 5 years, so is effectively kicked down the road.
The article was published and got some attention, but was then deleted because one of those clubs threw a hissy fit.
Five of those clubs now appear to be involved in giant circle jerk/player swap arrangements which may result in beneficial consequences for PSR calcs.
It works like this:
Club AV has a player called Toad who isn’t a regular. Would normally looking to sell him for £8m
Club CFC has a player called Le Bon who isn’t a regular. Would normally be looking to sell him for £10m
Both are academy players so the sale price represents pure profit of £8m and £10m. These profits are taken to the accounts immediately.
if the players are swapped there is a cash adjustmemt of £2m from Club AV to CFC, and still book the profits.
However, if a swap deal is made then nothing to stop the ‘official’ price of Toad to be £28m and that of Le Bon £30m. This way there is still a cash payment of £2m, but the profits in the accounts are £28m and £30m.
The additional cost of both players is then spread over the contract life of 5 years, so is effectively kicked down the road.
southstandandy
WEST STAND ANDY
- Jul 9, 2003
- 6,047
But I suspect they will be. A fine of £1000 and a packet of Disco's will probably be their punishment.
Isn't that essentially what Juve got busted for?
Yup.
kelvinnewman
Well-known member
- Aug 17, 2023
- 203
This does feel like quite a high risk strategy to avoid selling Gallagher
I'm not going to pretend to be a football finance DULLARD beyond listening to a few podcasts, but surely the PL have their hands tied here? One could argue it's blatant cheating and that the clubs involved are in cahoots (as demonstrated by their 'supposed' backing of City), but the clubs can still probably find a way to 'justify' carthorse League Two Lewis Dobbin, for example- who barely got into a League One Derby side- being worth £10m?
Certainly, club owners could have voted to put swap deals through a fair market panel (the Albion effectively used one of these when Chelsea poached two youth players a couple of years ago). It not enough support for it.
Yes. Absolutely. In fact, Chelsea are now listing ‘integrity’ as an intangible asset on their books, with a value of £100m (which can be offset against FP).
BadFish
Huge Member
- Oct 19, 2003
- 18,197
Integriti signed fro Juve didn't he?