FFP - How do we shape up?

[Goodbyen0t606]

"Championship clubs making losses of more than £6m will be fined millions of pounds or put under a transfer embargo from the 2014-15 season."

http://www.bbc.co.uk/sport/0/football/17841566
http://www.cardiffcityfc.co.uk/page/NewsDetail/0,,10335~2748623,00.html

Podcast: http://www.talksport.co.uk/radio/dr...hampionships-financial-fair-play-plans-170668

I assume we are in a better position now with our financially leaner squad. Will we have any troubles with these rules??

Edit: I Just heard a rumour that we voted against it, though I can't seem to confirm that anywhere. Anyone heard how we voted?

 

[bluebanana]

What a load of crap, just like the law its a bit of an ass! How do you get someone to pay a fine if they,ve got no money in the first place, as proven by the amount of debt they,ve accumalated? Banks push people into further debt when they charge you for going over your overdraft, its bloody robbery by institutions overflowing with cash that the government have no control over as depicted by payments to senior executives!
Right thats the rant over.
What this country needs from top to bottom is a complete overall of our financial systems so that we become responsible adults. Invest in an education system that promotes financial responsibilities across the board. drop loans, jail those who transgress this, forget overdrafts, lets get everyone to live within their means.
Bottom line is that institutions and that includes the clubs we all love, will just employ better financial staff to hide the plight. Whos the winners? Not us I,m afraid because we,ll pay through the nose to watch our teams. Try a ceiling cap on transfer fees and realsitic wages for footballers, ye, some may go abroad but the market will only absorb so many, then a plateu will be found and then perhaps our clubs can become solvent and we wont be seeing so many clubs looking at going to the wall? Its all down to market needs guys and if people are allowed to pay/be paid obscene amounts of money (particulary in the prem) then we all become victims to the market.
Thats the end of the fairytale.
In a nutshell guys to many football clubs have become the "Big boy toys" for the rich, no passion, no heart they,ll just move on to the next toy.
Enjoy the debate..only time will tell...and please dont let the jacks take over this one to tell us how good they are at looking after their finances...about the same memory span as a goldfish.....fishing anyone? LOL

 

[remote]

The banks and the government has a problem with you living within your means. Banks want the interest on the money they loan you and the government want you to spend to fuel the economy.

It's a reason the government isn't keen on streamlining the public sector, more people on the dole!

As for the footy perspective, there's been a problem ever since the abolition of the maximum wage and probably before. Supply and demand dictates high wages and high transfer fees. Take away the demand and the costs will fall. Unfortunately, the league structure rewards the top performing clubs disproportionately which forces most clubs into taking the risk.

It becomes a self fullfilling proficy. Boom or bust.

The SFA is a clasic example. If Rangers go to the wall, what will the appetite be for watching a one horse race? Will other clubs take the risk of splashing out to try and get the champions league place that Rangers would have had, or will interest in Scottish football be lost, gates fall, sponsorship falls and Celtic falls with the rest.

 

[BluefromBridgend]

I suspect our owners had one eye on this when considering transfer window deals recently.

This policy will result in a flattening of transfer fees and wages which may well be reflected in a lower standard of football and then reducing attendances. As a result it will become an ever decreasing circle where only those clubs who can achieve some success on the pitch and hold up their attendances and income will succeed.

Alternatively the clever accountants will find ways to deal with this - they always do.

 

[Goodbyen0t606]

What a load of crap, just like the law its a bit of an ass! How do you get someone to pay a fine if they,ve got no money in the first place, as proven by the amount of debt they,ve accumalated?

That was the first thing I thought about!

I can't see how it will "even-up" the playing field either!

 

[bluebanana]

Good post though Siam, and well done for keeping an eye on the "bigger picture stuff"
Interesting replies from both BFB and ccfcremotesupport cant disagree with your comments guys , just hope that next financial year we,re able to post some positives on the finance sheet?

 

[privatebenjamin]

The thing that struck me was that unless it includes the Premier League, then surely this is just going to widen the gap between the top division and anything else below it. Those teams that come down from the Premier League will most likely be in an even better position to bounce straight up again. I'm definitely in support of a restructure to the spending and potential debt of clubs, as the current situation cannot go on as it has been, but unless it includes every club in the English pyramid then it's never going to be fair. Having said that, I can't imagine that those clubs at the top would be willing to weaken their position.

 

[remote]

The thing that struck me was that unless it includes the Premier League, then surely this is just going to widen the gap between the top division and anything else below it. Those teams that come down from the Premier League will most likely be in an even better position to bounce straight up again.

I think it would actually work the other way. If there are no restrictions in the prem and clubs make big losses, when they come down to the championship, they suddenly have to reduce their wagebill hugely to ensure they stay within the cap. There would be more and more fire sales to get the big earners off the books.

 

[privatebenjamin]

I think it would actually work the other way. If there are no restrictions in the prem and clubs make big losses, when they come down to the championship, they suddenly have to reduce their wagebill hugely to ensure they stay within the cap. There would be more and more fire sales to get the big earners off the books.

I hope you're right, in order that the league remains competitive. I just thought that they'd put up with whatever fines they would incur and keep players on through the existing parachute payments. That said, any Championship club with a rich backer could still decide to risk the fines so I guess any club with the financial power would still be able to take the risk.

 

[Goodbyen0t606]

I think it would actually work the other way. If there are no restrictions in the prem and clubs make big losses, when they come down to the championship, they suddenly have to reduce their wagebill hugely to ensure they stay within the cap. There would be more and more fire sales to get the big earners off the books.

Yes, but the clubs who get promoted will probably be weaker overall than they are today. They will surely be even less prepared to survive. I guess we won't know until it happens. Perhaps players will accept playing in the Championship for less, though I think they will be of all over Europe. I just think the top 10 clubs in England got an even bigger safety net.

 

[Swamp]

FFP will benefit the super clubs, the rest will simply be prevented from having ambitious owners who are prepared to INVEST, not LOAN a club money to get them to move up the leagues.

that would be the first step to take IMO, clubs like pompey were screwed over by owners loaning them money then deciding they want it all back and hey ho its all tied up in wages and transfer fees.

as for how it will affect cardiff, i dont know, what losses have we made in the last 3 years? i know last year under jones is an anomaly but even so..