I thought this could do with a thread of its own. Today all championship clubs voted the FFP plans into effect. This is what it means for Championship clubs. [SUB]Taken from WO[/SUB] I have no idea what half of this means, so anyone care to explain??
If you read the above and combine it with the BBC article on the subject you get a better idea of what will happen. "Owners will be allowed to invest £6m next season, £5m the year after, then £3m in the 2014-15 season. From 2015-16, clubs will be allowed to make a £2m operating loss, as well accept a £3m investment from an owner - allowing for a £5m overall loss." "The changes will also prevent owners from funding their clubs through loans. " "QPR made a loss of £25.4m in their promotion season and would have been fined around £15m if the new regulations had been in place last year." The fines would be distributed to those clubs in the Championship that have kept to the rules. Stadium development and youth training can be set against the figures seemingly.
We will be alright with this? Or does it mean we will have to redirect funds?? BTW I have ten fingers for a reason, maths and finances aren't my speciality.
I need to have a look in more detail,just seen it!,but first impressions I think are good for us as we are maybe ahead of the game , cardiff , leicester, leeds ipswich etc may need a rethink! if my initial hunches are correct
What will tend to happen is that income will tend more and more to match day income which will be in line with attendances. http://stats.football365.com/dom/ENG/D1/attend.html . However that doesn't take into account player trading, which is hopefully where we will be big hitters with our academy. I think this is good news all round.
Cheers guys, yeah that makes sense. We aren't exactly big spenders and our academy might produce some good income. In fact, if anything we are stable enough. I wasn't sure of how our loans / bonds affect things...Still we should be GOLDEN !!
The only thing that seems to be a problem as things stand then is that we are loosing £4M per year, but Baz says he wants to reduce that. So if we can cut it down to 1-2M in a few years we should be ok. Although hopefully we will be profitable or at least break even by 14-15. Or is that wishful thinking?
Nah I recon we can do it. More importantly as others above mentioned we are in a better situation than a lot of clubs around us so that can only help. We are not as highly 'geared' as other teams. Is that right? Meaning relying heavily on investment or loans compared to your income??
I don't think it covers money invested in stadium infrastructure either. So we can still have the 20,000 seater East Stand then.
This is an overwhelmingly good thing, but a by-product is that it will become harder to offload high earners who aren't good enough, or to make respectable money for talented square pegs in round holes who aren't quite good enough for the Premier league. So the key for us is to ensure that we keep producing players that Premier League clubs are interested in, and make fewer expensive contract mistakes such as Ellington and Sadler.
Well I think this is good news for us. I doubt that we are breaking the rules now....and in a few years time we should be a better position... Some other teams will struggle with this.....but what it might do is make it harder to get promoted to the Premier League...as those who get relegated have an advantage and wouldn't care about a fair play tax too much...as being promoted still gets you lots of money.
Leeds who spent 35% of our turnover on wages and rarely ever cough up for transfer fees? We'll be affected less than any other club in the division. A healthy amount to spend is 50-60% according to UEFA and most football finance commentators, so our stinginess is actually backfiring. Middlesbrough and Ipswich will definitely be affected fairly severely if they don't get their acts together. Leicester will indulge in a bit of good ol'-fashioned financial doping, by their owners once again sponsoring everything that moves within their club and giving them a huge articifial cash injection. Cardiff will probably scrape through - they appear to have shifted some of the bigger earners and look a bit leaner than they were before. Watford will be average and unremarkable, as per.
I wonder which of the clubs were the three to vote against? http://www.bbc.co.uk/sport/0/football/17841566 Para 2: Three of the 24 clubs voted against new regulations to limit investment from owners and curb total spending.
For the record I agree with most of what you say Jerel. Leeds are doing a lot wrong in the opinion of Leeds fans, let alone anyone else, but you certainly aren't guilty of repeating the same mistakes that sunk you eight to ten years ago. But Is pretty rich coming from a club above us on goal difference. Can't say I'm surprised though, with fans who seem to believe that they are "Champions of Europe".
The FL chairman has stated that there is a possibility that about a third of FL clubs could go into admin and that although it isn't the main solution to avoiding that, he thinks it should reduce the possible numbers - in addition to this, League 1 & 2 clubs are still working on the percentage of turnover rules.
It should be good for the Championship, but (whys there always a but!?!) teams like Leicester with wealthy benefactors who just want to gamble on the EPL money can hide the figures by buying Stadium sponsorship.......from themselves (ala Man City), so I'm afraid the rules you & the others follow, might not be the rules that govern the others. Annoyingly true.
I get you, it's a fair point. If we all know that some clubs can jugle their figures to help them, why is it still permitted?
