- Apr 2, 2000
- 74,863
- 25,052
- AFL Club
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- Liverpool, Chicago Bulls.
As I said, im sure we will be fine but thanks for your concernThats an interesting piece. The fact that he hasnt repeated the "it's all due to writing off stadium expenses" mantra that Liverpool were briefing the press about convinces me that he has actually done some research.
The big question mark arising from this is the pre 2011 wages. He says that improvements between 2012/13 and 2013/14 shows an improving trend and as such allows you to exempt £50m in pre 2011 wages. The rules actually specify an improving trend over the entire reporting period, in which case Liverpool would miss out (year 2 was a bigger loss than year 1). According to the rest of his figures that would mean you fail FFP in the next reporting period. It may be that UEFA interpret the rule the same way as him, in which case you should be alright.
Other things that stand out include the impairment of contracts. That doesn't necessarily lead to a reduction of wages, but can lead to a reduction in amortisation. £10.7m isnt going to be too significant I would have thought, and I'd be surprised if wages in the next set of accounts havent increased.
Finally he's not mentioned that the permitted loss of £37m is only permitted if the owner converts losses to equity. FSG hasnt done that and you would question if they would be prepared to write off £30m or so to by doing that.
Will certainly be interesting, but not a sure thing one way or the other IMO.
I presume Suarez was sold in the 14/15 set of accounts which should see you eventually pass FFP easily. But I suspect FFP won't be around by then. But that will be a £30m+ profit on the books even after all the purchases so if your struggling to meet FFP then you're in trouble.