Financial Fair Play / Profit & Sustainability

[Scoot]

2 minutes ago, Keegans Export said:

Wow, that's a big shock. Unless they're bringing it in in addition to the 70/85% rule?

 

So how is that going to work?

 

You can spend 5 times what the bottom club earn but only 75% of your turnover? It doesn't make sense!

[Keegans Export]

1 minute ago, Jack27 said:

They are

 

1 minute ago, GeordieT said:

There has to be concurrency with UEFA as I’ve understood it. 

 

In that case it makes very little difference to our spending power, seeing as 70% of our turnover is going to be nowhere near enough to spend £450m.

[Keegans Export]

1 minute ago, Scoot said:

 

So how is that going to work?

 

You can spend 5 times what the bottom club earn but only 75% of your turnover? It doesn't make sense!

Presumably it's either 5x what the bottom club earn or 70/85% of turnover, whichever is lower.

 

I've seen the argument that it at least caps what the big earners can spend, but by Kieran Maguire's calculations there's only Chelsea and maybe Man City spending above this 5x cap now, so I don't see it making any fundamental difference.

[Scoot]

1 minute ago, Keegans Export said:

 

 

In that case it makes very little difference to our spending power, seeing as 70% of our turnover is going to be nowhere near enough to spend £450m.

 

That's what I mean, it's impossible to have both. 

[healthyaddiction]

I think it's a little unclear if it's as well as or in place of. At first I thought it was as well as, but a few places seem to think it's in place of it. Such as Kieran Maguire. Obviously there are the UEFA rules as well which would need to be complied with when in Europe, but the punishment on those seems less of a deterant.

[Ikon]

Same shit different name then basically. What’s the point of the cap then basically. 

 

 

Edited April 29 by Ikon

[r0cafella]

Wow I’m shocked they agreed to it, the proposal is as stupid as FFP lol. 

[Abacus]

1 minute ago, Scoot said:

 

So how is that going to work?

 

You can spend 5 times what the bottom club earn but only 75% of your turnover? It doesn't make sense!

85%, 70% is the UEFA rule.

 

And yes, the two go together.

 

So, we could spend 5 times that of the bottom clubs, but only up to 85% of our turnover. 

 

Which means, we couldn't spend 5 times that at all, but all the big boys still could as their revenue is so much greater than everyone else's.

[Keegans Export]

1 minute ago, Scoot said:

 

That's what I mean, it's impossible to have both. 

It's not impossible to have both, it just means that the clubs with turnover of over £640m will have their spending capped at £450m whereas clubs with turnover below that amount will have their spending capped at 70%.

[Dr.Spaceman]

Hang on, we voted for it though, that's got to mean something, right?

[r0cafella]

Just now, Dr.Spaceman said:

Hang on, we voted for it though, that's got to mean something, right?

Yes because it stops the mega clubs running away into the distance. It limits how far ahead they can get. 

[Scoot]

 

[Kid Icarus]

Will be interesting to see just how much the 3rd party rules are relaxed to go alongside this. 

[r0cafella]

Just now, Kid Icarus said:

Will be interesting to see just how much the 3rd party rules are relaxed to go alongside this. 

What’s the source for this relaxing or related party stuff?

[Ikon]

Isak’s individual sock sponsor by Aramco. 350m. 

[Guest]

1 minute ago, Kid Icarus said:

Will be interesting to see just how much the 3rd party rules are relaxed to go alongside this. 

Narrator: they won’t be relaxed 

[TRon]

4 minutes ago, r0cafella said:

Yes because it stops the mega clubs running away into the distance. It limits how far ahead they can get. 

 

As long as they can get ahead far enough not to be threatened beyond the odd season or two of freak results, I doubt they'll lose any sleep over it. Just seems like a token pretence of fair play without actually roping the cartel clubs in any meaningful way.

[The Prophet]

There is clearly a lot of politics at play behind the scenes. Interesting to see how it pans out leading into June.

[nufcnick]

I wonder if now that they have 2 limits, that will be where you start moving into points deduction territory, break one of the 70% of turn over or hard cap and it’s just a fine, break both and it’s a heavy points deduction 

 

 

Edited April 29 by nufcnick

[Dr.Spaceman]

3 minutes ago, nufcnick said:

I wonder if now that they have 2 limits, that will be where you start moving into points deduction territory, break one of the 70% of turn over or hard cap and it’s just a fine, break both and it’s a heavy points deduction 

 

 

 

 

Surely one is related to Euro comps only, the PL won't act on that breach, will they? You'll just be denied entry to any Euro competition.

[Kid Icarus]

9 minutes ago, r0cafella said:

What’s the source for this relaxing or related party stuff?

 

The regs themselves apparently. The bottom section: It ALSO opens up the opportunity for EPL to relax related-party deals... as hard cap x4.5/5 times of central broadcast revenues distribution creates an upper limit that doesn't stop investment, just market-distorting investments.

 

 

[Abacus]

11 minutes ago, r0cafella said:

Yes because it stops the mega clubs running away into the distance. It limits how far ahead they can get. 

Which, in turn, gives us a bargaining chip of sorts.

 

Think I read something that these rules on multiples are, magically, exactly about the amount Man City currently overspend compared to the bottom club now.

 

Be funny if an absolutely potless club gets promoted in future, maths fans.

[Guest]

carry on as normal, we’re still fucked

[Adam]

How far does the related party stuff go? Lets say PIF bought Adidas, would our sponsorship deal with them then be limited or scrutinised more? We just need to get the club tractor sponsor, official face cream, club gravy etc to get around all this nonsense. 

[Erikse]

28 minutes ago, Keegans Export said:

Presumably it's either 5x what the bottom club earn or 70/85% of turnover, whichever is lower.

 

I've seen the argument that it at least caps what the big earners can spend, but by Kieran Maguire's calculations there's only Chelsea and maybe Man City spending above this 5x cap now, so I don't see it making any fundamental difference.

 

Man United? They have the biggest income out of them all, don't they?