Earlier this season Huw Jenkins rejected the Premier League version of FFP, and I wondered why. Now I know. "With the new TV deal due to start for the 2013-14 season, which sees a 70% rise in revenues from UK broadcasters, clubs have agreed to limit the amount their wage bills can increase over the next three seasons: £4 million in 2013-14, £8 million in 2014-15 and £12 million in 2015-16." £4,000,000 / 52 weeks = £76,923 per week If we bought two new very good players and put them on Michu's salary, even if we bought them for as little as £1 each, we are at risk of being deducted points because we breached the wage bill rule in place for next season. We have to sell to buy folks despite the fact the Swansea have cash. This is why HJ rejected the Premier League's FFP and this is what he meant when he said it wrong for Swansea to be punished for being successful on and off the field. There will be no major moves in the summer for better talent, that would have to wait until the following season when the increase is allowed to rise to £8,000,000 over the season. We will have to make do in the Premier League, League Cup, FA Cup and Europa League with pretty much the same first team line-up and little back up quality at our disposal.
We cant or wont survive without strengthening....thats a cert.....you only have to look at how we are fading away and one of the worst clubs these past few months......No new players will mean trouble for sure.....I cant see it myself....
If that's the case, I would be tempted to play a second string side in the Europa league so we can concentrate on the real business of surviving in the Premier League.
Spare a thought for our rivals in Cardiff, they are subjected to the same rule and like what happens at every club after promotion all of their players will expect a pay rise. Can Tan really spend £25M? The new FFP rules seem to say differently.
nobody can compare our wage structure to any of the big clubs.....we only pay over £ 25k to a few anyway so we should keep within our wage budget without going over so i cant see a problem. it will effect teams paying stupid over the top wages more than it will ever effect us......We should be ok bringing in new players as far as i can see as whoever joins will have to accept our wage policy that is pretty fair as wages go in the premiership and I cant see how it will trouble a team like ours....
This will just ensure the smaller clubs are limited in their growth and that the bigger clubs get to stay "bigger". Some pretty ill-thought out decisions there. Agree that something did need to be done, but it should have been on a percentage basis rather than some arbitrary figure that applies to all clubs. As it is, it does feel like we're getting hamstrung by having a well-run, fast-growing club = sucks.
The only positive for the Swans that I can see is that we will have a warchest to soften any blow if we are relegated in the next couple of seasons. We will have money on our current system that simply cannot be spent, so it will be waiting there if the worst ever did happen. But, it is a blow to us right now where our financial model allows for growth faster than this FFP allows.
we are one of a select few who made a profit so it wont trouble us at all......clubs that made a loss will have to change things......we are ok.....
...but Dai, can't you see the problem here?! All of our players that have out-performed will (rightly) be expecting an improved contract offer (ie, increase in wage) Then we will be bringing in new quality players that will command a decent salary. Suddenly a £4m limit doesn't sound that massive - remember this is irrespective of what new income revenues we are able to generate. Also, any of the players we offload probably won't be on a huge wage, so that won't help much. It's now even more clear as to why we offered so many new contracts to players over the last few months and why we got Lamah on a loan deal, it seems we were getting our wage level up to it's highest point going into this FFP.
Project VRd Hi buddy, not to worry. I believe the FFP doesn't effect us what-so-ever as we are in profit. As I understand it, this max wage increase only applies to those clubs with large debt and only come into play if this debt approached £100m. We didn't sign or agree to the new FFP rules anyway because firstly - We thought the FFP regs were not stringent enough and the threshold of debt of £100m was irrelevant to us. Secondly, we felt that many clubs in the prem were already flying close to the fire yet the new FFP would do nothing to subdue their financial policies. thirdly - under the FFP definitions, salary caps wont effect clubs clubs below this £100m threshold and the regs were in fact totally sterile, doing little to curb the expenditure of poorly managed clubs. We are one of the very few footballing institutions in Europe, (baring Germany where debt is severely punished) recording £profit and due to this we find ourselves outside of the FFP remit. That's how it was explained to me Project, basically the FFP itself is just a toothless and pointless waste of paper.
i said virtually the same but much shorter and straight to the point....It wont effect us unless we put players on £70k+ per week....we are well below any threshold...
I like to explain my opinions with my reasoning Dai. I do this to facilitate understanding of my opinions and I find it better incites debate than just blurting "FACT" at everyone or adding a churlish smileys. Each to his own I suppose
There will always be a way around this type of thing, what is the restriction on personal sponsership deals for example? If michu gets paid 30k a week and has a personal sponsership deal from morgan hotels at 10k a week then wouldnt that work ? i know thats a very poor example but the principle would basically be the saem. Look at Beckham in France, he isnt getting paid anything...apparently!! the reason for that is to do with french tax laws but PSG are buying the best players in the world and navigating around the French tax system, the same thing will happen in the premier league, there will be loop holes found and exploited, ive never met many poor accountants !! .. they will find a way thats for sure. Swansea city fc could set up another company for purely commercial reasons, image rights deals with the subsidery of scfc etc,etc i bet there are all kinds of ways around it.
We talked about this in work today, bonuses are not salaries under legal jurisdiction. I hope the above posts are right and we are not affected under some sort of exemption rule for profitable club, but if not then Swansea is already using their head and getting players used to bonuses taken directly out the league placement prize money. Legally, across Europe, that end of season bonus cannot be counted as wages by a company, let alone a player.
You are right what you say Norfolk. The big clubs will get bigger. But these decisions are not poorly thought through. They are driven/influenced by the Clubs with power and will have been well thought through!
