Football club finances / FFP

[moomba]

Looking at Leicesters results I can't see a big problem. For a start if they get promoted they won't be subject to the championship FFP rules, the premier league ones are more lenient.

Also over £12m of the loss are one offs that won't be repeated next year.


Promotion and the TV money should easily cover that as long as it doesnt all go to players.

 

[Jatz]

Looking at Leicesters results I can't see a big problem. For a start if they get promoted they won't be subject to the championship FFP rules, the premier league ones are more lenient.

Also over £12m of the loss are one offs that won't be repeated next year.


Promotion and the TV money should easily cover that as long as it doesnt all go to players.

Yep, the club has really smartened up in regards to the finances. I've never had any concerns with how we sit, Sven screwed us for a couple of seasons but the bulk of his mistakes are now gone or are going at the end of the season

 

[Jatz]

I would also assume you guys have far better sponsorship contracts than a team like us - think we have one of the worst shirt sponsorship deals in the top 2 divisions purely because we signed it when we were on the brink of liquidation. Think it's 1m a season or something ludicrous. Thank **** that ends this year. Bye bye Cash Converters.

I know we got a pretty good deal with Puma but I can't for the life of me recall what it was.

 

[SM]

I know we got a pretty good deal with Puma but I can't for the life of me recall what it was.

Are they your manufacturers? I mean shirt sponsor.

 

[Jatz]

Are they your manufacturers? I mean shirt sponsor.

Yep.

We are sponsored by King Power which is our owners company so I'm not sure how fruitful that is. He loves the club so I think it's safe to assume he isn't screwing us over.

 

[SM]

Yep.

We are sponsored by King Power which is our owners company so I'm not sure how fruitful that is. He loves the club so I think it's safe to assume he isn't screwing us over.

That'd be a way around FFP wouldn't it? Owner could just sponsor the shirt for a s**t-ton.

 

[Jatz]

That'd be a way around FFP wouldn't it? Owner could just sponsor the shirt for a s**t-ton.

Admittedly I don't know but I can't imagine they'd allow that to happen.

 

[moomba]

UEFA just disregard sponsorship income from related parties that they consider to be above market value. So if Leicester break even but the King Power sponsorship is considered to be £5m above market value they would just consider Leicester to have made a £5m loss.

Presume the same applies to other FFP.

 

[Jatz]

UEFA just disregard sponsorship income from related parties that they consider to be above market value. So if Leicester break even but the King Power sponsorship is considered to be £5m above market value they would just consider Leicester to have made a £5m loss.

Presume the same applies to other FFP.

Yeah I expected that to be the case, do you know how they work out the market value of the sponsorship?

Only if you know off the top of your head, I can try and research it myself of course

 

[moomba]

No idea. It is a tough one for them because I can't see how than can say Chelsea for example can earn a certain amount, but Fulham can't have the same. Would seem a bit anti-competitive to me.

 

[Magma]

qpr announce a loss of a staggering 65.4 mil.

i would assume that they are in deep s**t if they don't get promoted. and even if they do...

 

[Jatz]

qpr announce a loss of a staggering 65.4 mil.

i would assume that they are in deep s**t if they don't get promoted. and even if they do...

For 12/13?

 

[Zidane98]

not surprising when they matched samba's wages from anzhi.

 

[Jatz]

not surprising when they matched samba's wages from anzhi.

They were bloody lucky that Anzhi bought him back for the same price 6 months later. Could have been much worse for them.

Is Samba still there does anyone know?

 

[Redalert]

They were bloody lucky that Anzhi bought him back for the same price 6 months later. Could have been much worse for them.

Is Samba still there does anyone know?

He's at Dynamo Moscow now, occasionally gets linked with a move back to the Prem.

For 12/13?

Yep. They're literally only surviving because of Tony Fernandes at the moment, net debt is up to 177m pounds.

 

[Jatz]

He's at Dynamo Moscow now, occasionally gets linked with a move back to the Prem.



Yep. They're literally only surviving because of Tony Fernandes at the moment, net debt is up to 177m pounds.

Yep that club is ****ed. Bolton are as bad but at least QPR still have a chance at promotion.

Not good for either club

 

[Redalert]

Yep that club is ******. Bolton are as bad but at least QPR still have a chance at promotion.

Not good for either club

It really isn't, Fair Play is going to murder the Championship clubs who push for promotion and don't achieve it.

 

[SM]

It really isn't, Fair Play is going to murder the Championship clubs who push for promotion and don't achieve it.

If we hadn't gone up last season we never would have, apparently.

It will be really rough on a lot of clubs who just don't have the resources.

 

[Jatz]

If we hadn't gone up last season we never would have, apparently.

It will be really rough on a lot of clubs who just don't have the resources.

Ehh? It should make it more even as clubs that do have resources can't just use them for the sake of it. Won't matter how rich a club is, they are only as effective as their bottom line. There is obviously still a gap but the margin should be getting closer and not further away.

 

[SM]

Ehh? It should make it more even as clubs that do have resources can't just use them for the sake of it. Won't matter how rich a club is, they are only as effective as their bottom line. There is obviously still a gap but the margin should be getting closer and not further away.

Won't be more even, will result in the clubs who get relegated just yo-yoing back up.

 

[Jatz]

Won't be more even, will result in the clubs who get relegated just yo-yoing back up.

How? The revenue decreases by moving down a division > they can't do a QPR and spend as much trying to go straight back up.

They no longer have the ability to just chuck money at everything like in previous years.

This will actually be good for the Championship as long as your club is strong with it's money.

 

[SM]

How? The revenue decreases by moving down a division > they can't do a QPR and spend as much trying to go straight back up.

They no longer have the ability to just chuck money at everything like in previous years.

This will actually be good for the Championship as long as your club is strong with it's money.

A club that has already got a strong squad will just go back up. You won't spend much on player fees, and since other clubs in the division can't, then you will go up. If you're a QPR who has terrible players then you deserve everything you get.

Speaking of, they're in for a rough time. Upwards of 50m in penalties, and possible player embargoes coming their way.

It won't be good for the Championship at all.

A Leicester fan speaking on the topic actually pointed out that 8 or 9 of your senior players plus big Nige are out of contract end of this season, so if you hadn't gone up apparently you would have struggled to replace them without spending a fair chunk. Suggests to me that this will just hamper clubs' ability's to compete on player transfer fees with clubs who have come down from a division where they were able to spend a lot more.

 

[Jatz]

A club that has already got a strong squad will just go back up. You won't spend much on player fees, and since other clubs in the division can't, then you will go up. If you're a QPR who has terrible players then you deserve everything you get.

Speaking of, they're in for a rough time. Upwards of 50m in penalties, and possible player embargoes coming their way.

It won't be good for the Championship at all.

A Leicester fan speaking on the topic actually pointed out that 8 or 9 of your senior players plus big Nige are out of contract end of this season, so if you hadn't gone up apparently you would have struggled to replace them without spending a fair chunk. Suggests to me that this will just hamper clubs' ability's to compete on player transfer fees with clubs who have come down from a division where they were able to spend a lot more.

No they won't. Surely you of all people know how hard it is to get promoted back to the PL. Reading and Wigan haven't spent a lot and they haven't run away with the league. Relegated teams spend much more on player wages than an established club in the Championship, even with clauses in contracts.

Not for that set of results they aren't. FFP doesn't take effect in the Championship until the 13/14 season. If they keep going the way they are, then yes they'd be in trouble.

It will be great for the Championship. There won't be as big a gap between rich and poor. Currently, if Fernandes wants to go spend 100mil in a season to get QPR promoted then he can do that. From this season he will no longer be able to. He can only spend what the club allows. Which is nowhere near that as most Championship clubs are similar. Obviously the likes of Yeovil, Doncaster etc will still struggle but they were going to regardless.

Their contracts haven't been renewed deliberately. We don't want to give them a raise in wages if we don't end up getting promoted. We won't lose all 9 players, we will keep the ones we want and let the others go. The likes of Kasper, Wes Morgan, Nugent and co will stay if they are considered required players in the PL.

It's actually much smarter doing it that way than offering them a wage that is no longer appropriate in a years time, which is something that Sven did and is still costing us.

 

[SM]

No they won't. Surely you of all people know how hard it is to get promoted back to the PL. Reading and Wigan haven't spent a lot and they haven't run away with the league. Relegated teams spend much more on player wages than an established club in the Championship, even with clauses in contracts.

Not for that set of results they aren't. FFP doesn't take effect in the Championship until the 13/14 season. If they keep going the way they are, then yes they'd be in trouble.

It will be great for the Championship. There won't be as big a gap between rich and poor. Currently, if Fernandes wants to go spend 100mil in a season to get QPR promoted then he can do that. From this season he will no longer be able to. He can only spend what the club allows. Which is nowhere near that as most Championship clubs are similar. Obviously the likes of Yeovil, Doncaster etc will still struggle but they were going to regardless.

Their contracts haven't been renewed deliberately. We don't want to give them a raise in wages if we don't end up getting promoted. We won't lose all 9 players, we will keep the ones we want and let the others go. The likes of Kasper, Wes Morgan, Nugent and co will stay if they are considered required players in the PL.

It's actually much smarter doing it that way than offering them a wage that is no longer appropriate in a years time, which is something that Sven did and is still costing us.

Surely me of all people? Hull struggled to get back up because of massive over-spending in the PL which is now not possible under FFP, so FFP is almost preparing teams for the drop back to Championship spending, but with a squad that is easier to keep together. Just look at what Newcastle did when they kept their squad together.

If QPR don't get promoted this year they are in trouble, as their losses for this year are apparently trending along similar lines.

 

[NUFC Tiger]

QPR kept most of their (very expensive and bloated) squad after relegation didn't they in the hope of bouncing back at the first attempt.

I fear if they miss out this season, they'll be in a bit of trouble.