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

[Hiheidi]

Brilliant article, summing up this madness. My favourite bit...

'you’re loading further debt on the club for future years, kicking the can down the road in the process and banking on there always being a stream of academy kids (sorry, we must call them Units of Pure Profit now) that you can sell on to fund your next transfer splurge that supporters demand.'

 

[deletebeepbeepbeep]

Brilliant article, summing up this madness. My favourite bit...

'you’re loading further debt on the club for future years, kicking the can down the road in the process and banking on there always being a stream of academy kids (sorry, we must call them Units of Pure Profit now) that you can sell on to fund your next transfer splurge that supporters demand.'

An example of extreme capitalism eating itself. Absolutely disgraceful.

 

[Sarisbury Seagull]

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.

In completely unrelated news, I see that Everton have just signed Aston Villa academy kid Tim Iroegbunam and 24 hours later Villa have signed Everton academy kid Lewis Dobbin. Both for £9m. Incredible co-incidence that.

 

[Baldseagull]

In completely unrelated news, I see that Everton have just signed Aston Villa academy kid Tim Iroegbunam and 24 hours later Villa have signed Everton academy kid Lewis Dobbin. Both for £9m. Incredible co-incidence that.

This is starting to look like a cartel now, screwing the rest of the league over by assisting each other around the rules. There has got to be a cap on the transfer of academy players that have not played more than a set number minutes in a first team competition,

 

[The Fifth Column]

In completely unrelated news, I see that Everton have just signed Aston Villa academy kid Tim Iroegbunam and 24 hours later Villa have signed Everton academy kid Lewis Dobbin. Both for £9m. Incredible co-incidence that.

It's false accounting is what it is. Both clubs now are able to register £9m in pure profit on their accounts but more importantly spread the £9m 'payment' over a number of years. Not a penny has been transferred by either club but each clubs accounts are instantly £9m richer on paper. Not one shit is given about either player neither of whom will likely ever see the first team and are both significantly overvalued by several times their actual worth. It's more corruption from the same old clubs

 

[Sarisbury Seagull]

It's false accounting is what it is. Both clubs now are able to register £9m in pure profit on their accounts but more importantly spread the £9m 'payment' over a number of years. Not a penny has been transferred by either club but each clubs accounts are instantly £9m richer on paper. Not one shit is given about either player neither of whom will likely ever see the first team and are both significantly overvalued by several times their actual worth. It's more corruption from the same old clubs

Without meaning for this thread to get political as there are enough threads for that, these clubs remind me of our current government. They continue to treat their fans/electorate like shit, they flaunt their corruption in our faces and know nothing will ultimately be done to properly punish them. They just don't give a shit.

 

[Super Sub]

The FA need to grow some and start hitting clubs like Chelsea with proper punishments.
I’ve just come off the sky sports transfer centre and had to actually check I wasn’t on a designated Chelsea page.
Bloody ridiculous

 

[Hiheidi]

 

[Weststander]

Can’t Chelsea, ManC, Forest, Villa and Newcastle fck off to another league or set up their own?

By hook, crook and the best City law firms, they’re railroading through everything their bent owners want. A football Wild West based on which petro state or Greek has the most money.

Don’t fall for the Martin Samuel apologist propaganda. A money Wild West would see clubs like Brighton over short time blown out of the water, 6th would be impossible, we’d fall down the hierarchy as the very same petro states and private equity fund chancers would buy other cubs. Spending would escalate to a scale we could never get near, the gap would widen.

 

[kelvinnewman]

Chelsea apparently selling their womens team themselves to swerve PSR

 

[drew]

Chelsea apparently selling their womens team themselves to swerve PSRView attachment 185502

Does money spent or received for the women's team count towards PS&R though?

 

[Hiheidi]

Chelsea apparently selling their womens team themselves to swerve PSR

Being reviewed by the PL.

 

[Uh_huh_him]

Being reviewed by the PL.

The PL just need to accept, they are out of their depth and hand all of this over to a regulator.

 

[Baldseagull]

I think restructuring is fair enough to an extent, selling off assets, etc. But if the women's team expenditure would not count against Chelsea in regards to Premier League profit and sustainability, I don't see how any revenues from it, including selling it should.

 

[Harry Wilson's tackle]

The PL just need to accept, they are out of their depth and hand all of this over to a regulator.

I may have miss-heard but was not a football regulator part of today's King's speech?

 

[Flounce]

The top clubs in the country will not be brought to account whatever shenanigans they get up to imo. Lesser clubs will be taking the hits as we are already seeing.

 

[Withdean South Stand]

To be fair to Chelsea and also to City before them, the loop holes they've identified are pretty impressive. I'm against it because I believe in integrity and a level playing field, but with the rules as they currently are it has forced clubs to consider how to get around them. Chelsea are very creative if nothing else.

I hope it blows up in their faces.

 

[tjg]

If I was to ever give up football and hand-in my scarf and season-ticket it wouldn't be be because of Albion's success or failure... it would be because of this sort of behaviour... legalised cheating by people who run clubs and have no love for game, I find it so utterly dispiriting and dishonorable. And the PL sits back and lets it happen.

 

[GT49er]

I may have miss-heard but was not a football regulator part of today's King's speech?

Did you not hear the...cough...mumble...the devil's in the detail caveats (even though they weren't specifically mentioned or set out)?


Funny, I'm sure some high powered lawyers in the pay of Citeh, Chelsea and a few others heard them!

 

[Hiheidi]