Is it just a way of making the big clubs bigger at the expense of the smaller clubs a lot has been written about Financial Fair Play or the 60% wage cap but is this really fair? I do not see how they can claim it to be fair as it discriminates against the smaller sides after all it is going to be harder for smaller clubs even those with wealthy board members to ever climb the tables and get bigger crowds if they can not sign name players to bring the currently non committed fans through the gates and it is even worse if you are talking about L1 if like Wolves you crash from the prem to L1 in successive seasons your financial clout is way above what any other team in the division can dream of with the parachute payments. Basically as I see it the big clubs don't really want more than 2 divisions (20 clubs in each) of full time professional players they seem to think that would be enough to keep them in money and that is all they are concerned about. Am I just cynical or do others agree?
Total agreement from me. The Premier League and their cousins at the top of the Championship are trying to ensure that sooner rather than later, they form two divisions of 20 teams and cut the rest adrift. Promotion may still exist for one team per season, but the conditions needed to be met such as under soil heating, 25,000 minimum all seater stadium, car parking on site for 1,000 cars and any more one cares to think of, will ensure that only a very small handful of clubs will meet the criteria. It is already like that in the second tier of English Rugby, with top clubs like Cornish Pirates never having a hope of promotion even if they winn the league by a country mile.
It would be interesting to see a simplified table of the FFP rules and how they will affect the clubs. Just get rid of all of the waffle attached to the sites which discuss them. Would be great if someone had the time and inclination.
Part of the problem is wading through all the waffle as no one site seems to cover the whole thing without shed loads of assorted junk as well but I will see what I can find out.
Financial Fair Play in The Football League Introduction Following two years of detailed discussions, The Football League and its clubs have agreed a Financial Fair Play framework that will operate in all three of its divisions from the beginning of the 2012/13 season. It aims to reduce the levels of losses being incurred at some clubs and, over time, establish a league of financially self-sustaining professional football clubs. The decision to adopt Financial Fair Play regulations follows a strategic review by The Football League Board which identified the state of club finances as the organisation's greatest challenge. During this process, each division has been given the flexibility to determine its own Fair Play regulations, given that clubs of different sizes face differing financial challenges. In the Championship, clubs have agreed to introduce a breakeven approach based on the UEFA Financial Fair Play Regulations. Whilst in League 1 and League 2, clubs will implement the Salary Cost Management Protocol (SCMP) that has been in use in the latter division since 2004/05. The SCMP broadly limits spending on total player wages to a proportion of each club's turnover. How will it work? The Championship Financial Fair Play in the Championship will see the introduction of a breakeven model based on UEFA Financial Fair Play Regulations. It will require clubs to stay within pre-defined limits on losses and shareholder equity investment that will reduce significantly over the next five seasons. The new system will require clubs to provide annual accounts to The Football League by December 1 every year, covering the previous season/financial year. Using this information a 'Fair Play Result' will be determined for each club that will equate to the club's profit/loss for the year, excluding investment in specific areas of club infrastructure or losses in certain extraordinary circumstances. In order to comply with the Financial Fair Play regulations each club is required to demonstrate a Fair Play Result that is either: a) nil or greater. or: b) A loss of less than the permitted level of acceptable deviation and shareholder equity investment for the season in question. The permitted level of acceptable deviation and shareholder equity investment will reduce over time from £4m and £8m respectively in 2011/12 to £2m and £3m by 2015/16. The Football League will establish a Financial Fair Play Panel, led by its Chairman, to consider any challenges by clubs to the determination of the Fair Play Result. What counts towards the Fair Play Result? The Fair Play Result is based on the club's profit or loss before tax with the exception of: • Investment in Youth Development (as defined in the Elite Player Performance Plan) • The profit affecting element of the purchase, sale and depreciation of fixed assets excluding players (e.g. a club's stadium) • Investment in a club's Community Scheme • Promotion related bonus payments A club is also entitled to apply to the Financial Fair Play Panel to have certain exceptional items excluded from the Financial Fair Play Result in a particular year. Such as (but not limited to): • Career ending injury costs • Bad debts from other clubs • Losses sustained from a major sponsor defaulting The timetable for implementation As with UEFA's Financial Fair Play regulations, The Football League will phase in its Financial Fair Play framework for Championship clubs. This is outlined below. Season 2011/12 2012/13 2013/14 2014/15 2015/16 onwards Acceptable deviation £4 m £4 m £3 m £3 m £2 m Shareholder equity investment £8 m £6 m £5 m £3 m £3 m Total Permitted Allowances £12 m £10 m £8 m £6 m £5 m The first reporting period will be the current season (2011/12) - with the first set of accounts due to be submitted on 1st December 2012. Sanctions Failure to stay within the defined limits will lead to the imposition of sanctions. However, there will be no sanctions implemented during the first two seasons (2012/13 and 2013/14) in order to give clubs a sensible period of transition. From the 2014/15 season, sanctions will be introduced that will differ depending on whether the club ultimately remained in the Championship, was promoted to the Premier League or was relegated to League 1. i. Sanctions for clubs remaining in the Championship Clubs that fail to comply with the Financial Fair Play regulations (from December 1st 2014) will be subject to a transfer embargo. This embargo will come in to force ahead of the subsequent transfer window beginning on January 1, 2015. The embargo will remain in place until the club is able to lodge financial information that demonstrates that it meets the Financial Fair Play regulations (either for the previous reporting period or a future reporting period). ii. Sanctions for clubs promoted to the Premier League Clubs promoted to the Premier League will be required to provide Financial Fair Play information for their promotion season by December 1. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m. The Fair Play Tax will be applied at the following thresholds: (a) 1% of the excess between £1 and £100,000; (b) 20% of the excess between £100,001 and £500,000; (c) 40% of the excess between £500,001 and £1,000,000; (d) 60% of the excess between £1,000,001 and £5,000,000; (e) 80% of the excess between £5,000,001 and £10,000,000; and (f) 100% of the excess over £10,000,000 Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question. The Football League is currently in the process of consulting with the Premier League regarding the implementation of these Financial Fair Play regulations. iii. Sanctions for clubs relegated to League 1 Clubs relegated to League 1 will not be entitled to any payout derived from the Fair Play Tax and will be required to comply with the FFP rules in operation in that division. Transition arrangements for clubs relegated from the Premier League Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations. League 1 and League 2 League 1 and League 2, clubs have chosen to implement the Salary Cost Management Protocol (SCMP) first used in League 2 in 2004/05, although it will operate at different thresholds in each division. The SCMP broadly limits spending on total player wages to a proportion of each club's turnover, with clubs providing budgetary information to The League at the beginning of the season that is updated as the campaign progresses. Any club that is deemed to have breached the permitted spending threshold will be subject to a transfer embargo. Wherever possible, The League will seek to tackle the issue 'at source' by refusing player registrations that take clubs beyond the threshold. At the beginning of the current season, League 2 clubs reduced the permitted spending threshold to 55% from 60% and this figure will continue to be operated next season. League 1 clubs are currently operating a 'pilot' of the SCMP with clubs complying with a 75% threshold but with no sanctions being applicable this season. This threshold will reduce to 65% in 2012/13 and 60% in 2013/14 with sanctions (transfer embargoes) being applicable in both seasons. This is from the football league site.
Although the whole system could descend into farce if this man suceeds. http://www.independent.co.uk/sport/...face-test-from-the-bosman-lawyer-8605315.html
I had heard that there was something in the wind about someone challenging FFP but I had thought it was a football club.
Presumably for our two clubs all we need to read is as follows; League 1 and League 2 League 1 and League 2, clubs have chosen to implement the Salary Cost Management Protocol (SCMP) first used in League 2 in 2004/05, although it will operate at different thresholds in each division. The SCMP broadly limits spending on total player wages to a proportion of each club's turnover, with clubs providing budgetary information to The League at the beginning of the season that is updated as the campaign progresses. Any club that is deemed to have breached the permitted spending threshold will be subject to a transfer embargo. Wherever possible, The League will seek to tackle the issue 'at source' by refusing player registrations that take clubs beyond the threshold. At the beginning of the current season, League 2 clubs reduced the permitted spending threshold to 55% from 60% and this figure will continue to be operated next season. League 1 clubs are currently operating a 'pilot' of the SCMP with clubs complying with a 75% threshold but with no sanctions being applicable this season. This threshold will reduce to 65% in 2012/13 and 60% in 2013/14 with sanctions (transfer embargoes) being applicable in both seasons. This is from the football league site. So it would appear that any rich uncle can still employ players in their offices as overpaid 'part-time tea boys' as was the case in the days of shamateur Rugby. There would also appear to be loop holes for the finance for spending on Acadamies, infrastructure etc. I thought I read somewhere that all external financial input had to be paid into the club's bank account at the start of the season. Presumably turnover includes gate money and any hire of facilities for non-football functions.
Yes you could have hammer chewers in your side employed by your chairman but it wouldn't take long before an audit of the club caused problems, Had we got the permission for the new ground then it would have covered the costs of a lot of other things in the building costs one of the reasons the big clubs want bigger and bigger stadia. I thought I read somewhere that all external financial input had to be paid into the club's bank account at the start of the season. I think it has to be declared as there is no guarenty that that the money will arrive.
FFP has to happen - football cannot continue down this crazy road As far as our club is concerned - we lost £14m last year which is unsustainable - it's good to see that there is a plan in place for us to change (seperate from FFP) even if it does mean some short-term pain
Have to agree, too many clubs (1 is too many) have gone into administration recently and football should be for the benefit of the supporters.
I don't totaly disagree however I think there must have been a better way to stop things spiraling out of control a maximum wage for each league might have helped for example. Agents would know there was a limit to what they could demand which would be one way of keeping down wage bills. Some of the wages paid to players just beggars belief if FIFA and UEFA were serious about making a more level playing field that would be a better way surely? Something along the lines of Top divisions Max 2 million pounds a year, next division down something between 250K and 500K per year - 3rd tier 100K max per year 4th tier 50K per year. There would be an added incentive to do well for your club as your best chance of a good pay rise would be promotion or playing well enough for teams higher to consider buying you. These are just examples I'm sure professionals could work out something better.
