FFP

This seems to explain it all fairly clearly:

https://www.westlondonsport.com/qpr/football-qpr-ffp-questions-answered

It has an air of being bad without being sensational or causing major drama but I suppose a lot of people have had time to plan and prepare.

My take is that the owners have been handed a 42 million fine. 22 million of it goes to the club so the club can't be worse off by paying the fine. I suppose, by doing that, the owners are only paying out 22 million.

If that's the case then we've effectively halved the fine and protected the club from the hit but the EFL have looked like they've extracted the full amount.

I'm probably well wide of the mark though.

 

Re capitalisation:

I looked up a few places, and that last one is (on paper at least) the best thing in this.

Instead of the club owing the directors £21 million plus, these will have been converted into shares. Creating new shares doesn’t increase the clubs value or the value of their holdings, it dilutes the value of a share. So effectively, it tells the club that they no longer owe the directors £21 million, which is nice because that means we can pay the EFL fine and costs from what we owed Tony et al.

In a strange way, it shows the EFL, and our board, in a very good light, arriving at a solution that doesn’t seem to put an overly burdensome financial penalty on the club, and the means to service that penalty, therefore meaning we can really start to look forward now.

 

What the hell were TF & co thinking? They flouted the rules and have paid the price. Reckless.

 

Am I right in thinking though, through this agreement, it is the owners who pay the price, but the club is protected from being massively hindered other than the January transfer ban. I'm not too bothered by that as as others have said, we rarely do any great business in January.

 

Given the element of this settlement which is in effect a direct punishment of the owners, forcing them to write off £22m worth of loans into worthless and irredeemable shares we should note that this may not have been possible had Fernandes et al not hung around, because new owners might have justifiably argued that the fiasco didn’t happen on their watch and the club should shoulder the whole burden.

So thanks Tone. I think.

 

On a positive note
We won't be wasting any money in January and I won't have to waste time with a January transfer thread linking us and reading and wolves to every spare player

 

A very insightful article from Clive on LFW:

https://www.fansnetwork.co.uk/footb...edicine-so-when-will-things-get-better-column

Well worth reading, especially the summary at the end:

What hasn’t been settled today, is what Financial Fair Play is actually there for and whether it’s working. I said all this in March but it’s worth repeating now… What are we trying to achieve here?

Is FFP designed to make the competitions fairer? Well, clearly, no it’s not. Is it Chelsea - with their laundered Russian oil money, and their 40 players out on loan, and their trophy-laden youth team that never has a hope of playing any first team football at all and exists purely so other clubs can’t have them - that breach FFP? Is it Manchester City, and their construction of football’s equivalent of the Death Star in a derelict bit of East Manchester, sucking in players from all over the world with no intention of ever playing them just so other teams can’t have them, financed by a repressive Arab regime? Is it PSG, another front for a politically abhorrent Middle Eastern gazillionaire, buying players for £198m a time? No it’s not.

The teams that breach FFP and get rinsed for it are QPR, Blackburn, Nottingham Forest, Leicester, Bournemouth. Middle of the road clubs, trying to better themselves. It doesn’t make the competition fairer it makes it more unequal. The teams with the Champions League football, the shirt sales, the Johnny Come Lately supporters and the oil money are rewarded and become more powerful, to the detriment of the national team and everybody else. Anybody who even attempts to compete a little bit, or even to get up and play in the same league as them, is hammered.

QPR were disgusting in 2013/14, ignoring rules that others were complying by, but the fine levied against them, the changing of the rules, the rules existing at all, hasn’t deterred others doing the same. Bournemouth, Wolves last season, Nottingham Forest this season, are all also ignoring the FFP rules and gambling on winning promotion. The Championship remains horribly distorted by money, it’s just that previously any club could get a rich owner and spend big to try and get promoted, whereas now some clubs decide to while the rest are forbidden by the league’s rules. It is the farthest thing from fair.

So, is it to protect the clubs from themselves? Stopping some rich idiot coming in, splashing cash on players, failing, leaving the club to collapse into administration? Officially, yes. The Football League are jolly pleased that a spate of clubs going into administration, of which the league’s own head Shaun Harvey was CEO at two, has abated and point to that as success. But Villa have been close to financial collapse this summer, and once Sheff Wed release their next set of accounts they’re going to be hammered by FFP and the league even though the owner there is happy to keep putting money in.

And what’s a bigger threat to a club anyway - doing what Tony Fernandes has done at QPR, or doing what the Oystons have done with Blackpool, or the Venky’s at Blackburn, or Sisu at Coventry or the Allams at Hull? If you’re genuinely interested in safeguarding clubs, in protecting them from themselves, how can you sit idly by while that stuff is going on?

Have a functional Fit and Proper Person Test, and have a rule that says owners are not allowed to leverage debt against the club if their spending spree all goes to ****, and that’s a safeguard. FFP is not.

 

That is pretty impressive.

 

Bloody hell, do the club keep an eye on this forum (and by extension Fantasy Island, etc...?)

 

Censored on a forum?!

 

Surely we can get Tony and Mittal to play this off from their vast millions ……..


Oops, I'll get me coat.

 

Tony and the Mittals have lost a lot of money...but are still here...what if they had walked away...
. would any of the new owners have taken this on... probably not

Also the EFL are letting us pay this off in instalments and it will not impinge on future FFP calculations....think this is better than we can have hoped.

Let's put this behind us...and get on with the future.

Come on you RRRRs

Sent from my STF-L09 using Tapatalk

 

Out of interest, where does the money go? Nice little earner for the Football League this.

 

But would TF & Co have been able to sell with FFP hanging over the club? This settlement just about makes the club into a saleable commodity

 

Charity, according to David Mac. Possibly Grenfell

 

All of it?

 

Can’t TF and the Mittals just pay it off for us from their millions?


........... I’ll get me coat.

(It wasn’t that long ago that we all begged them to spend millions and millions on players. Surely we are partly to blame.)

 

All the fine element apparently. £17m

£3m is legal costs. The rest is capitalised debt

 

£3m to cover the league’s legal costs. Need to the add the club’s legal costs to come up with the total cost of this sad debacle. another £3m?