QPR could get 60M fine

[Proud Fox]

If QPR get promoted this season they could get a 60M fine for breach of FFP rules. If they DON'T get promoted they wont face any fine

@StringerSport: RT @marcwebber: QPR face £60m fine for £80m overspend under Football League Financial Fair Play rules http://t.co/iduDCUQAed @fcbusiness

Quite mad how these rules work out. 60M fines under FFP is going to ruin clubs not save them which FFP was designed to do. Yes I know QPR only have themselves to blame but its a joke

I think we will occur a fine as I cant see us cutting our loses from 30M to 6M in 1 year despite all our cost cutting

 

[RicardoHCAFC]

If QPR get promoted this season they could get a 60M fine for breach of FFP rules. If they DON'T get promoted they wont face any fine

@StringerSport: RT @marcwebber: QPR face £60m fine for £80m overspend under Football League Financial Fair Play rules http://t.co/iduDCUQAed @fcbusiness

Quite mad how these rules work out. 60M fines under FFP is going to ruin clubs not save them which FFP was designed to do. Yes I know QPR only have themselves to blame but its a joke

I think we will occur a fine as I cant see us cutting our loses from 30M to 6M in 1 year despite all our cost cutting

It doesn't apply for a few years yet (it's recorded this season, but fines aren't being given out until next season's accounts are submitted), relegated clubs like QPR are given a margin of error based on their PL income/expenses so the headline figure for them would be wrong anyway, and it will really do what it aims to if you look at it as a longer term aim.

The reason for spending **** loads of money is to get to the PL so you get the money that comes from it. If you take away the benefit of gambling by fining them huge sums of money there's no reward. If there's no reward available then you're not going to take the risk in the first place, which means clubs will start spending within their means.

 

[LeicesterWizard]

Does this £80m loss include their parachute payment?

 

[FosseFilberto]

It doesn't apply for a few years yet (it's recorded this season, but fines aren't being given out until next season's accounts are submitted), relegated clubs like QPR are given a margin of error based on their PL income/expenses so the headline figure for them would be wrong anyway, and it will really do what it aims to if you look at it as a longer term aim.

The reason for spending **** loads of money is to get to the PL so you get the money that comes from it. If you take away the benefit of gambling by fining them huge sums of money there's no reward. If there's no reward available then you're not going to take the risk in the first place, which means clubs will start spending within their means.

... which makes the Premier League far more difficult to get to ... and even harder to stay in given that clubs going up will contain only players willing to accept Championship wages to get there ... so the divide between the Prem and tha Championship becomes even more ingrained and the likelihood is that relegated teams have an even better chance of bouncing straight back ...

 

[RicardoHCAFC]

Does this £80m loss include their parachute payment?

Yes, parachute payments count as part of your income for each season because you earn them in chunks by completing your matches so any loss figure is after they've been paid. If you folded mid-season then you'd forfeit the rest of your payments for that season, and obviously any for future seasons. If you were guaranteed to be paid them whether you folded or not then they'd count as income for the season you got relegated even though you received the cash later, so they'd help cover your losses in future seasons, but it's swings and roundabouts, over 5 years (relegation and 4 years on parachute payments) your overall figure would obviously be the same.

So if their normal (without parachute payment) income is £20M and their parachute payment is £16M (so £36M total), their expenditure (to give an £80M loss) would need to be £116M.

... which makes the Premier League far more difficult to get to ... and even harder to stay in given that clubs going up will contain only players willing to accept Championship wages to get there ... so the divide between the Prem and tha Championship becomes even more ingrained and the likelihood is that relegated teams have an even better chance of bouncing straight back ...

Only way to do it would be to give them a massive bonus for getting promoted, but make it so that it was only payable if they were still employed by the club on August 1st. As most clubs' financial years end on July 31st, the August 1st clause would mean they were only due to pay it the following year. The only issue is in trying to offload players after promotion as they'll want their bonus paying, but it's not exactly a drama to line up the deals for completion on 1st August. Plus you've weeded out the players who don't think you can get promoted and just want the cash anyway so there's a bonus there.

 

[leicester_ed]

Thing that pisses me off is that we started the ball rolling with our losses before the rules came in and then get punished for something which we did before it came in - cant just go from £30m to £6m easily

 

[RicardoHCAFC]

Thing that pisses me off is that we started the ball rolling with our losses before the rules came in and then get punished for something which we did before it came in - cant just go from £30m to £6m easily

Did you as a club vote for or against the rules when it came to it? I'm sure they published which clubs went which way at the time, just can't remember who was each side except that we were in favour because we were working on meeting them anyway.