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Football League Financial Fair Play


James

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Thought this would be worthy of some general musings and more detailed analysis later on as the year progresses.

 

Next season we are subject to Football League Financial Fair Play regulations.

 

They are explained here:

 

http://mobile.football-league.co.uk/news/article/2015/championship-financial-fair-play-2867176.aspx

 

Crux of it is that we are not allowed losses next season of more than £6m, or £9m if Ashley gives us the maximum permitted loan of £3m.

 

I'm sure our balance sheet champions in the NUFC boardroom will be poring over the financial implications

 

If we do break the rules and are not promoted, we would face a transfer embargo until we show we are operating at the acceptable levels.

 

If we are promoted we have to pay a fine to the Football League determined by how bad our losses are.

 

For example, a £26m loss equates to a £17m fine, so becomes a £43m loss overall.

 

How would we resolve this? Obviously we are going to need to make cuts or gamble on immediate promotion.

 

Making sure we sell our valuable players fairly late on (I.e in the correct accounting period) would improve the figures but similarly we would then have to delay the signings we made for the following season.

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To be honest they will probably think of nothing else all summer, and then when they realise they have left it too late to sign anyone, they will blame inactivity on FFP

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we can get round it by getting the fat cunt to pay the going rate for his advertising

 

They've put a stop to this I'm led to believe, qpr weren't allowed to use advertising funding from their owner to offset ffp

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we can get round it by getting the fat c*** to pay the going rate for his advertising

 

They've put a stop to this I'm led to believe, qpr weren't allowed to use advertising funding from their owner to offset ffp

 

eh?why not? even if its genuine advertising at the standard rate?

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Thought this would be worthy of some general musings and more detailed analysis later on as the year progresses.

 

Next season we are subject to Football League Financial Fair Play regulations.

 

They are explained here:

 

http://mobile.football-league.co.uk/news/article/2015/championship-financial-fair-play-2867176.aspx

 

Crux of it is that we are not allowed losses next season of more than £6m, or £9m if Ashley gives us the maximum permitted loan of £3m.

 

I'm sure our balance sheet champions in the NUFC boardroom will be poring over the financial implications

 

If we do break the rules and are not promoted, we would face a transfer embargo until we show we are operating at the acceptable levels.

 

If we are promoted we have to pay a fine to the Football League determined by how bad our losses are.

 

For example, a £26m loss equates to a £17m fine, so becomes a £43m loss overall.

 

How would we resolve this? Obviously we are going to need to make cuts or gamble on immediate promotion.

 

Making sure we sell our valuable players fairly late on (I.e in the correct accounting period) would improve the figures but similarly we would then have to delay the signings we made for the following season.

 

The £13m limit for the 2015/16 season is in line with the losses permitted under the new regulations which will permit a maximum loss of £39m over a rolling 3 season timeframe (compared to an equivalent figure of £105m in the Premier League). A club that moves between the Premier League and Championship will be assessed in accordance with the permitted loss in the relevant divisions played in during the three-year period in question. For example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61m, consisting of one season at £35m and two at £13m.

 

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Thought this would be worthy of some general musings and more detailed analysis later on as the year progresses.

 

Next season we are subject to Football League Financial Fair Play regulations.

 

They are explained here:

 

http://mobile.football-league.co.uk/news/article/2015/championship-financial-fair-play-2867176.aspx

 

Crux of it is that we are not allowed losses next season of more than £6m, or £9m if Ashley gives us the maximum permitted loan of £3m.

 

I'm sure our balance sheet champions in the NUFC boardroom will be poring over the financial implications

 

If we do break the rules and are not promoted, we would face a transfer embargo until we show we are operating at the acceptable levels.

 

If we are promoted we have to pay a fine to the Football League determined by how bad our losses are.

 

For example, a £26m loss equates to a £17m fine, so becomes a £43m loss overall.

 

How would we resolve this? Obviously we are going to need to make cuts or gamble on immediate promotion.

 

Making sure we sell our valuable players fairly late on (I.e in the correct accounting period) would improve the figures but similarly we would then have to delay the signings we made for the following season.

 

The £13m limit for the 2015/16 season is in line with the losses permitted under the new regulations which will permit a maximum loss of £39m over a rolling 3 season timeframe (compared to an equivalent figure of £105m in the Premier League). A club that moves between the Premier League and Championship will be assessed in accordance with the permitted loss in the relevant divisions played in during the three-year period in question. For example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61m, consisting of one season at £35m and two at £13m.

So it's no issue then. With the 80m we get despite relegation plus sales of players off currently out on loan plus any extra sales, we'll still probably break even

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How will we make any losses next season? NUFC will be paid the £80m or so TV money at the end of this season. Next season the parachute payments start. Selling the likes of Sissoko and the other high earning players who want to leave will cut the wage bill. The replacements will be on Championship wages. As long as NUFC get promoted in 1 season they should be fine as far as the Football League Financial Fair Play goes.

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We're on for a decent profit this season, despite on-field failings. We'll probably impair the value of a lot of our players before the end of our financial year so that future player amortisation charged in the FL are much lower. IIRC we did that last time.

 

Also selling some players will have little impact unless they've been here for a while so are on the books at a low value. Profit or loss is only the difference between sale value and book value, it's not the cash received.

 

 

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Thought this would be worthy of some general musings and more detailed analysis later on as the year progresses.

 

Next season we are subject to Football League Financial Fair Play regulations.

 

They are explained here:

 

http://mobile.football-league.co.uk/news/article/2015/championship-financial-fair-play-2867176.aspx

 

Crux of it is that we are not allowed losses next season of more than £6m, or £9m if Ashley gives us the maximum permitted loan of £3m.

 

I'm sure our balance sheet champions in the NUFC boardroom will be poring over the financial implications

 

If we do break the rules and are not promoted, we would face a transfer embargo until we show we are operating at the acceptable levels.

 

If we are promoted we have to pay a fine to the Football League determined by how bad our losses are.

 

For example, a £26m loss equates to a £17m fine, so becomes a £43m loss overall.

 

How would we resolve this? Obviously we are going to need to make cuts or gamble on immediate promotion.

 

Making sure we sell our valuable players fairly late on (I.e in the correct accounting period) would improve the figures but similarly we would then have to delay the signings we made for the following season.

 

The £13m limit for the 2015/16 season is in line with the losses permitted under the new regulations which will permit a maximum loss of £39m over a rolling 3 season timeframe (compared to an equivalent figure of £105m in the Premier League). A club that moves between the Premier League and Championship will be assessed in accordance with the permitted loss in the relevant divisions played in during the three-year period in question. For example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61m, consisting of one season at £35m and two at £13m.

So it's no issue then. With the 80m we get despite relegation plus sales of players off currently out on loan plus any extra sales, we'll still probably break even

 

The parachute is £38.7m next season, not £80m..

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Plus our £50m for prize money for where we finished in the league. I won't worry for Ashley just yet.

 

I´m sure you all have plenty of opinions on Mike Ashley, but given his ways I´m sure he knows that NUFC might one day be worth a fortune to him, but not in the championship so he´ll fork out whatever it costs to get promoted IMHO.

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Thought this would be worthy of some general musings and more detailed analysis later on as the year progresses.

 

Next season we are subject to Football League Financial Fair Play regulations.

 

They are explained here:

 

http://mobile.football-league.co.uk/news/article/2015/championship-financial-fair-play-2867176.aspx

 

Crux of it is that we are not allowed losses next season of more than £6m, or £9m if Ashley gives us the maximum permitted loan of £3m.

 

I'm sure our balance sheet champions in the NUFC boardroom will be poring over the financial implications

 

If we do break the rules and are not promoted, we would face a transfer embargo until we show we are operating at the acceptable levels.

 

If we are promoted we have to pay a fine to the Football League determined by how bad our losses are.

 

For example, a £26m loss equates to a £17m fine, so becomes a £43m loss overall.

 

How would we resolve this? Obviously we are going to need to make cuts or gamble on immediate promotion.

 

Making sure we sell our valuable players fairly late on (I.e in the correct accounting period) would improve the figures but similarly we would then have to delay the signings we made for the following season.

 

The £13m limit for the 2015/16 season is in line with the losses permitted under the new regulations which will permit a maximum loss of £39m over a rolling 3 season timeframe (compared to an equivalent figure of £105m in the Premier League). A club that moves between the Premier League and Championship will be assessed in accordance with the permitted loss in the relevant divisions played in during the three-year period in question. For example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61m, consisting of one season at £35m and two at £13m.

So it's no issue then. With the 80m we get despite relegation plus sales of players off currently out on loan plus any extra sales, we'll still probably break even

 

The parachute is £38.7m next season, not £80m..

 

He's referring to the money we'll get for being in the Premier League this season, though I'd assume that will come in right at the end of the current financial year rather than the start of next.

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