FFP and ways to get around it.

davebaxt

davebaxt

Goalkeeper
We all believe this takeover is fantastic news and think this is going to help to take the club forward and hopefully we get back to the Premier league as quickly as possible. However I do wonder how much the new owners will be allowed to input into the club bearing in mind mind we will probably already be running at a small loss. Can we expect any money in January or will we have to wait until we are in the Championship. Once promoted what sort of investment can we expec? Sorry if this has been covered.
 


A share issue is the obvious way to go to inject money into the club without breaching FFP rules.
The problem with that solution? Our existing owners.
 
Owners can 'donate' as much as they like to the club in League One, as long as there is no expectation of it being paid back.

And given the Championship FFP is judged over the course of the past 3 seasons, that would give us a few years of leeway if they decided to donate £1b this season :cool:
 
YES WE GYAN said:
Owners can 'donate' as much as they like to the club in League One, as long as there is no expectation of it being paid back.

And given the Championship FFP is judged over the course of the past 3 seasons, that would give us a few years of leeway if they decided to donate £1b this season :cool:
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It wouldn't though, the £1bn would be counted in this season's calculations so if we started spending it next season and didn't make as much in as what we spent it would count as a loss even though our bank balance would show just under £1bn. Equally they seem to have tests regarding market value so it's unlikely we could just sell a few seats at £10,000,000 each. There's no doubt other ways around it but they would need a bit of creativity, thankfully I'm sure these lads will have suitably creative people to call on!
 
With Dell being a passive investor there are shit loads of ways of getting round FFP. Dell sponsoring the stadium or shirts being two main ones
 
Guinness Guzzler said:
It wouldn't though, the £1bn would be counted in this season's calculations so if we started spending it next season and didn't make as much in as what we spent it would count as a loss even though our bank balance would show just under £1bn. Equally they seem to have tests regarding market value so it's unlikely we could just sell a few seats at £10,000,000 each. There's no doubt other ways around it but they would need a bit of creativity, thankfully I'm sure these lads will have suitably creative people to call on!
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FFP in the Championship is assessed over the past 3 seasons, so any cash injection made this season would be counted as turnover within that 3 year period.
 
davebaxt said:
We all believe this takeover is fantastic news and think this is going to help to take the club forward and hopefully we get back to the Premier league as quickly as possible. However I do wonder how much the new owners will be allowed to input into the club bearing in mind mind we will probably already be running at a small loss. Can we expect any money in January or will we have to wait until we are in the Championship. Once promoted what sort of investment can we expec? Sorry if this has been covered.
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Can't we do what villa did and the owners buy the stadium for 250 million.

Or what city did and do the words best Sponsership deal, 250 million, sundelland stadium of light, or a shirt deal for 3 billion?
 
FFP is about wages and
Revenue .. I know you had a huge wage bill last year and didn't go up but let's be honest you get massive revenue Compared to every club in this league and will have the capacity to have double maybe treble the FFP capacity of clubs in the division already.

60% of a clubs revenue can be spent on wages, last season you could spend 60% of 63.3 million on wages...

You really shouldn't have any problems getting out of this division even if the owners spent naff all on players
 
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L1lyBrown said:
A share issue is the obvious way to go to inject money into the club without breaching FFP rules.
The problem with that solution? Our existing owners.
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Why's that?

Current ownership issue four times as many shares as currently exist but then don't buy any of them, instead allowing FPP to buy their 75+% share for however many $ it's been agreed that they'll put in to future-proof our finances.
 
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PUSB said:
FFP is about wages and
Revenue .. I know you had a huge wage bill last year and didn't go up but let's be honest you get massive revenue Compared to every club in this league and will have the capacity to have double maybe treble the FFP capacity of clubs in the division already.

60% of a clubs revenue can be spent on wages, last season you could spend 60% of 63.3 million on wages...

You really shouldn't have any problems getting out of this division even if the owners spent naff all on players
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Depends whose the manager for the rest of the season like
 
PUSB said:
FFP is about wages and
Revenue .. I know you had a huge wage bill last year and didn't go up but let's be honest you get massive revenue Compared to every club in this league and will have the capacity to have double maybe treble the FFP capacity of clubs in the division already.

60% of a clubs revenue can be spent on wages, last season you could spend 60% of 63.3 million on wages...

You really shouldn't have any problems getting out of this division even if the owners spent naff all on players
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You obviously don’t know much about our manager.
 

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