muppetman
Well-Known Member
- Jul 29, 2011
- 9,062
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""It cost former Chelsea owner Roman Abramovich about £900,000 a week for 19 years in terms of interest-free loans to cover the club's losses," Maguire said."
How grim is that.
Financial Fair Play (general thread)
- Thread starter GMI
- Start date
How grim is that.
UncleBuck
Well-Known Member
- Aug 20, 2003
- 9,265
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Shocking isn’t it, my initial thought was that if the previous owner was allowed to get away with it for 19 years then surely the PL need to be held accountable for it as surely, even then, it was their responsibility it ensure clubs were on a sound financial footing, which as we all know they haven’t been for twenty years.
Demote them to league 2 like Rangers I say.
SirHarryHotspur
Well-Known Member
- Aug 9, 2017
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Problem is , in a statement issued by Chelsea new owners they state that during due diligence before any contracts were signed they discovered underhand payments that were not shown in Chelsea accounts that should have been, that should have been the responsibility of the PL & UEFA to discover , not said by Boehly but how I would see it.
With normal businesses you would make sort of indemnity deal over future legal matters but the previous owner is sanctioned by the UK government so if I am paying £3 billion to buy a company I would take the information to the interested parties i.e UK government, PL and UEFA and say to them what are you going to do about this rule breaking by a previous owner, so far we have had the 10 million euro fine for Chelsea from UEFA.
Any PSR problems since the takeover, then that is the responsibility of the current ownership.
brasil_spur
SC Supporter
- Aug 25, 2006
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I can’t see there being any pre-Boehly action being taken other than fines.
But I can see the PL coming down hard on post-Boehly violations.
thecook
Well-Known Member
- Jan 17, 2009
- 5,717
- 11,311
You'd think so wouldn't you, but as we saw during covid, there wasn't even a plan in place for a situation where the seson couldn't be finished on time! Seems like they're mainly interested in the here and now, and not planning for the future of the game!
UncleBuck
Well-Known Member
- Aug 20, 2003
- 9,265
- 11,315
So uefa, pl and the fa all need to grow a pair and strip them of every trophy they won after his second season.
Plenty of other leagues have done it, even the mighty Juve have fallen foul to it.
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dovahkiin
Damn you're ugly !
- May 18, 2012
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Premier League agree new financial fair play rules for next season
Premier League clubs have unanimously agreed in principle to introduce new financial fair play regulations from next season at a meeting in London on Thursday. The profitability and sustainability rules (PSR) that have capped how much money clubs can spend over the last decade are set to be...
theathletic.com
Premier League clubs have unanimously agreed in principle to introduce new financial fair play regulations from next season at a meeting in London on Thursday.
The profitability and sustainability rules (PSR) that have capped how much money clubs can spend over the last decade are set to be scrapped from the start of the 2025-26 season and replaced with a similar “squad cost control” rule to the one UEFA adopted in 2022.
The new system, which must still be fully ratified at the Premier League’s annual general meeting (AGM) in June, will work as a shadow to the existing PSR regime next season.
There were actually two votes at Thursday’s shareholders’ meeting. The first, which received unanimous backing, was to progress discussions on the finer details of the Premier League squad cost rules, with a view to adding the new regime to the rulebook this summer. The second, which was supported by a strong majority, was on how the new regulations would be phased in.
Under the proposed new regime, clubs will only be allowed to spend a set percentage of their annual turnover on the wage bill for the first team and its coaching staff, plus the amortised costs of their transfer fees and all agents’ fees.
The major difference, however, between the Premier League and UEFA regulations will be that they will operate a two-tier system, with clubs playing in European competition only able to spend 70 per cent of their turnover, while clubs not competing in Europe able to spend 85 per cent.
Contrary to recent reports, clubs that breach the Premier League’s rules will still be subject to points deductions.
Everton have been hit with points deductions this season (Chris Brunskill/Fantasista/Getty Images)
The current PSR guidelines — which see clubs allowed to lose a maximum of £105million over a rolling three-year accounting cycle — have seen Everton twice hit with points deductions this season with Nottingham Forest also penalised.
However, some clubs are still keen to explore the possibility of introducing financial penalties, instead of points deductions, for minor breaches of the squad cost rule.
Some clubs have suggested this could work like a US-style luxury tax, while others have preferred to talk about a “buffer zone” for less serious cases that do not merit points deductions.
This, among several other discussions about the finer details of the new rules, will all be resolved at the league’s two-day AGM in Harrogate, with a final vote on the matter set for June 5.
There has still been no discussion about increasing the current PSR threshold from £105m with some clubs believing the figure, which was set a decade ago, should be raised to reflect rising wages and transfer fees.
It replaced UEFA’s previous Financial Fair Play (FFP) system, which allowed clubs to make losses of up to €30m over a three-year accounting period.
The squad cost rule limits a club’s spending on player and coach wages, transfers and agent fees to 70 per cent of their revenue.
UEFA is phasing its rules in over three seasons, with clubs that play in its competitions allowed to spend 90 per cent of their turnover on their squads this season, 80 per cent next season and 70 per cent in 2025-26, which is when the new Premier League rules should come into full effect, too.
The extent of the financial sanction is decided based on the extent of the breach and the number of breaches over the past three seasons of the new rules.
A “significant” breach, UEFA says, comes in three forms:
Under the previous FFP rules, UEFA could and did sanction clubs in a variety of ways depending on the severity of the offence.
It added that this new system would “provide certainty for clubs in relation to their future financial plans”.
The Premier League also said the clubs had “re-confirmed their commitment to securing a sustainably-funded financial agreement with the EFL“, although that itself remains subject to that new financial system.
The profitability and sustainability rules (PSR) that have capped how much money clubs can spend over the last decade are set to be scrapped from the start of the 2025-26 season and replaced with a similar “squad cost control” rule to the one UEFA adopted in 2022.
The new system, which must still be fully ratified at the Premier League’s annual general meeting (AGM) in June, will work as a shadow to the existing PSR regime next season.
There were actually two votes at Thursday’s shareholders’ meeting. The first, which received unanimous backing, was to progress discussions on the finer details of the Premier League squad cost rules, with a view to adding the new regime to the rulebook this summer. The second, which was supported by a strong majority, was on how the new regulations would be phased in.
Under the proposed new regime, clubs will only be allowed to spend a set percentage of their annual turnover on the wage bill for the first team and its coaching staff, plus the amortised costs of their transfer fees and all agents’ fees.
The major difference, however, between the Premier League and UEFA regulations will be that they will operate a two-tier system, with clubs playing in European competition only able to spend 70 per cent of their turnover, while clubs not competing in Europe able to spend 85 per cent.
Contrary to recent reports, clubs that breach the Premier League’s rules will still be subject to points deductions.
Everton have been hit with points deductions this season (Chris Brunskill/Fantasista/Getty Images)
The current PSR guidelines — which see clubs allowed to lose a maximum of £105million over a rolling three-year accounting cycle — have seen Everton twice hit with points deductions this season with Nottingham Forest also penalised.
However, some clubs are still keen to explore the possibility of introducing financial penalties, instead of points deductions, for minor breaches of the squad cost rule.
Some clubs have suggested this could work like a US-style luxury tax, while others have preferred to talk about a “buffer zone” for less serious cases that do not merit points deductions.
This, among several other discussions about the finer details of the new rules, will all be resolved at the league’s two-day AGM in Harrogate, with a final vote on the matter set for June 5.
There has still been no discussion about increasing the current PSR threshold from £105m with some clubs believing the figure, which was set a decade ago, should be raised to reflect rising wages and transfer fees.
What is UEFA’s ‘squad cost control’ rule?
UEFA approved the squad cost ratio rule at an executive committee meeting in April 2022 as part of its new financial sustainability and club licensing regulations, which also cover ‘solvency’ and ‘stability’.It replaced UEFA’s previous Financial Fair Play (FFP) system, which allowed clubs to make losses of up to €30m over a three-year accounting period.
The squad cost rule limits a club’s spending on player and coach wages, transfers and agent fees to 70 per cent of their revenue.
UEFA is phasing its rules in over three seasons, with clubs that play in its competitions allowed to spend 90 per cent of their turnover on their squads this season, 80 per cent next season and 70 per cent in 2025-26, which is when the new Premier League rules should come into full effect, too.
What are UEFA’s punishments for financial breaches?
The UEFA regulations state that breaching the squad cost ratio will see clubs hit with a financial penalty — unless it is a “significant” breach.The extent of the financial sanction is decided based on the extent of the breach and the number of breaches over the past three seasons of the new rules.
A “significant” breach, UEFA says, comes in three forms:
- A club’s ratio is 20 per cent over the threshold
- A club’s ratio is 10 per cent over the threshold and it has breached the limit in one of the past three seasons
- A club’s ratio is any amount over the threshold and it has breached the limit in two of the past three seasons
Under the previous FFP rules, UEFA could and did sanction clubs in a variety of ways depending on the severity of the offence.
What has the Premier League previously said about its financial rules?
Following a shareholders’ meeting on March 11, the Premier League issued a statement saying its clubs had “agreed to prioritise the swift development and implementation of a new league-wide financial system”, without disclosing any further details.It added that this new system would “provide certainty for clubs in relation to their future financial plans”.
The Premier League also said the clubs had “re-confirmed their commitment to securing a sustainably-funded financial agreement with the EFL“, although that itself remains subject to that new financial system.
(James Gill – Danehouse/Getty Images)
Misfit
President of The Niles Crane Fanclub
- May 7, 2006
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So the 70%/85% limit I guess is to somewhat mitigate the difference in financial revenue of European football from season to season. Fair enough. One can hardly just build and gut an entire squad in a single year in an endless cycle.
Clubs operating at those margins won't give themselves much wiggle room either way though.
Clubs operating at those margins won't give themselves much wiggle room either way though.
SirHarryHotspur
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- Aug 9, 2017
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So will we see the the wage bill for 1st team squads & coaches published in club accounts , then we can see how accurate sites like Capology are with their estimates of squad costs.
SirHarryHotspur
Well-Known Member
- Aug 9, 2017
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Toney & Tonali that well known double act could have a field day on betting on end of season games where clubs don't want to finish in 7/8th place.
Even if you make a deep run in the conference league the revenue won't make up that 15% for any Premier League side.
SirHarryHotspur
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- Aug 9, 2017
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Chelsea might make the Conference for next season and Deloitte give them a wage/revenue ratio of 79% but the Deloitte figures are for the whole wage bill not just the 1st team squad , it's all too complicated . UEFA are just going to issue fines which seems a waste of time for some clubs, they will just absorb it with ease.
Why only 2 points ?
SirHarryHotspur
Well-Known Member
- Aug 9, 2017
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Because the EFL have a different set of rules and penalties to the Premier League dealing with financial irregularities.
It does show that some clubs are in a poor financial state when they can't pay their dues , another example why a Football Regulator is needed to ensure that some clubs are properly run financially.
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Thanks.
Why haven't they had all transfer deals (inwards) suspended until all overdue amounts are cleared ?
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