Financial Fair Play (general thread)

[Nick-TopSpursMan]

Decent explainer here:

 

[cookiemonster]

Little Levy is a financial fair play in person

Just get everyone to follow him

 

[Albertbarich]

Give it a year before someone (Chelsea) find some loophole to cheat their way round it

It sounds like a good idea. Id hope even the PFA recognise that football can't continue to go down this current route.

 

[dovahkiin]

for those interested

 

[brasil_spur]

Give it a year before someone (Chelsea) find some loophole to cheat their way round it

It sounds like a good idea. Id hope even the PFA recognise that football can't continue to go down this current route.

This backstop IMO is basically designed to stop Chelsea and others finding loop holes around the UEFA 70% rule. Because with that (and the new version of PL PSR) clubs will be able to keep spending levels high by finding forms of revenue like sponsorships and selling themselves their own assets as a way around 70&% by simply increasing the revenue coming in.

With TV rights the amount is fixed and cannot be increased at a club level, so the backstop means that any dodgy deals that Chelsea and others are doing to inflate their revenue streams won't count for anything.

 

[wishkah]

so what happens with the the excess revenue the clubs make beyond the 5x bottom club tv revenue limit

so if we've been building the stadium, getting the gigs in and generally catching up revenue-wise with the big boys. does this mean we can't spend it?

 

[brasil_spur]

so what happens with the the excess revenue the clubs make beyond the 5x bottom club tv revenue limit

so if we've been building the stadium, getting the gigs in and generally catching up revenue-wise with the big boys. does this mean we can't spend it?

Not really as right now only Chelsea are over the limit and they've spent £1bn in the last few windows on players. So basically we can't spend £1bn every few windows, but otherwise we can match the spending of the big clubs like City etc...

Also what the 70% rule does is force many clubs who operate below us off the field, but have wealthy owners pumping in dodgy cash, to operate at a level even further below us rather than overtake us with owner backed funds.

What it also means is that we need to sharpen up our player recruitment, which we have been doing, and be more ruthless on selling players.

For example if we buy a player like Ndombele for say £50m on a 5 year deal on £96k per week, then each year we have £10m of amortisation and £5m of wages. If after year 1 we realised he was a bit shite but we could still get say £25m for him then we should sell him as A) His amortised book value is now £40m and with the £25m incoming that means only £15m write down on the books - we would have written down £10m anyway and this way he's gone and so no future years write down and B) wages come off the accounts too, which saves us £5m - so year 2 is the same as keeping him on the books, but years 3-5 are now zero cost on the books to us and we can bring someone else in. This has been a massive weakness of Levy's IMO - not knowing when to cut our losses on players so that we can keep investing.

What I think the better model going forwards will be is to sign more players for smaller fees. That way the good ones stay and salaries can be increased when needed, but amortisation values stay low and the bad ones can be moved on with minimal impact on the books. Also a cheaper player being loaned out like we did with Sarr or Udogie means is a big thing versus loaning out an expensive player like Ndombele, because whilst we can reduce our wages bill by loaning players out we can't reduce our amortisation costs.

Basically I think, if it's not already the case, that we need to start looking at players from an annual cost perspective, which is a combination of their amortised cost and their wages.

 

[SirHarryHotspur]

Nottingham Forest: Appeal rejected against four-point penalty

Nottingham Forest fail in an appeal against their four-point punishment for breaching Premier League profit and sustainability rules.

www.bbc.co.uk

Forest will have to go all out against Chelsea on Saturday to try and get some points to make sure Luton can't catch them.

https://resources.premierleague.com/premierleague/document/2024/05/07/47658880-3376-45a8-b2f6-4ceb80a5cf2a/Nottingham-Forest-Premier-League-appeal-final-judgment.pdf

 

[GMI]

Notwithstanding his allegiances I have a lot of time for Arsene.

Has Wenger finally won the culture war over big money in football?

The Frenchman raged over the game’s super rich when he was in charge of Arsenal. His hopes of a more level playing feel may comes to fruition

www.theguardian.com

 

[archiewasking]

Nottingham Forest: Appeal rejected against four-point penalty

Nottingham Forest fail in an appeal against their four-point punishment for breaching Premier League profit and sustainability rules.

www.bbc.co.uk

Forest will have to go all out against Chelsea on Saturday to try and get some points to make sure Luton can't catch them.

https://resources.premierleague.com/premierleague/document/2024/05/07/47658880-3376-45a8-b2f6-4ceb80a5cf2a/Nottingham-Forest-Premier-League-appeal-final-judgment.pdf

Luton are awful. Whatever Forest do, I can't see Luton getting enough points to overhaul them.

 

[SirHarryHotspur]

Luton are awful. Whatever Forest do, I can't see Luton getting enough points to overhaul them.

It is highly unlikely as Luton need four points and Forest to lose both final games , would just like to see Luton get a point at West Ham to make sure that Forest need something against Chelsea .