Financial Fair Play

[Matt_B]

So what about Forest splashing the cash is it because they kept such tight control over finances that they now have some leeway or are they taking a punt ?

I imagine they are gambling that they will get promoted and thus only face a fine. It's a bit risk in this division.

 

[Biffa Bacon]

So what about Forest splashing the cash is it because they kept such tight control over finances that they now have some leeway or are they taking a punt ?

They are taking a punt but expect any team fined or embargoed to take out a restriction of trade legal case against the league. These regulations are far from secure and will eventually be tested in law.

The league/FA have minimal ability to control clubs and owners because they are not willing to risk losing court cases or having government regulation imposed, both of which are very real possibilities.

 

[Hazzman]

I think there's a lot of problems with FFP; inconsistent rules, advantage to relegated sides and whether it has any clout. The only case of a club actually being punished by the rules is Swindon and no legal case was forthcoming there.

However, it is also the necessary medicine to our club's debt.

 

[bocadillo]

They are taking a punt but expect any team fined or embargoed to take out a restriction of trade legal case against the league. These regulations are far from secure and will eventually be tested in law.

The league/FA have minimal ability to control clubs and owners because they are not willing to risk losing court cases or having government regulation imposed, both of which are very real possibilities.

And they call this sport?

ffs!

 

[Blue Maniac]

The league/FA have minimal ability to control clubs and owners because they are not willing to risk losing court cases or having government regulation imposed, both of which are very real possibilities.

Would government interference not attract a FIFA ban?

 

[Biffa Bacon]

Would government interference not attract a FIFA ban?

It depends what it actually covered and how it was implemented, FIFA only acts on direct intervention.

 

[DesertFox]

And they call this sport?

ffs!

No Boc, it's ffp, do keep up.

 

[bocadillo]

No Boc, it's ffp, do keep up.

Don't misunderstand me. I'm fully in support of ffp. If such principles had been upheld over the years, football would not be in its current state. My objection is of the need to go to law if you don't agree with the rules.

 

[DesertFox]

Don't misunderstand me. I'm fully in support of ffp. If such principles had been upheld over the years, football would not be in its current state. My objection is of the need to go to law if you don't agree with the rules.

That was supposed to be clever pun on ffp, ffs!

When you have to explain a joke, you know it's a bad one...

 

[bocadillo]

That was supposed to be clever pun on ffp, ffs!

When you have to explain a joke, you know it's a bad one...

Sorry.

:icon_redf

 

[DesertFox]

Sorry.

:icon_redf

Not as sorry as I am, now :icon_lol:

 

[DesertFox]

As for FFP, as much as I hate to say it, I'm all in favour of it - or something like it, preferably much more effective - that stops us from eating ourselves.

 

[drew]

I wonder the FFP fine goes on a clubs figures as a loss for the following year.

 

[Blue Maniac]

I wonder the FFP fine goes on a clubs figures as a loss for the following year.

Why wouldn't it?

 

[M17TT C]

Why wouldn't it?

Because it will probably be the start of an ever increasing sprial of it.

Kind of like pay-day loans.

 

[drew]

Why wouldn't it?

I don't know, every year you fail to meet the FFP requirements could see a compounded amount accrue in fines alone against the turnover.

 

[Foxes_Trust]

I wonder the FFP fine goes on a clubs figures as a loss for the following year.

If you were being fined (and not transfer embargoed) it means you have been promoted to the Premiership, so that is the best chance of turning in profits despite the fine, as long as a club doesn't get carried away on players wages and grabs all commercial opportunities that arise

 

[Foxes_Trust]

So what about Forest splashing the cash is it because they kept such tight control over finances that they now have some leeway or are they taking a punt ?

Forest's results in the 2011/12 season were a loss of £12.2m, just over FFP limits for that season (remember ours was £29.7m in comparison). Their wage bill had risen to £17.6m (ours was £27.7m for the same period).

We don't know what Forest's finances were like for season 2012/13. They would have allowed to lose £10m last year & meet FFP as long as the owners invested £6m. If they were closer to a break even state, then if their owners were willing to provide the maximum £5m investment allowed this season & they "aimed" for a £3m loss, they could still be meeting the FFP criteria with an £8m punt.

In our case, we were starting from a massive loss situation, based on 2011/12 figures, and while that loss should have reduced last season (having removed wages like Mills etc), there was still an apparent need to pump in £15.6m from the owners, it's a big shift for us to achieve FFP this season

 

[Chrysalis]

Beginning to worry that we may be forced into making bad decisions to attempt to comply with FFP (and still be unlikely to manage it anyway). Ie. Selling Morgan cos we can't get rid of konch.

And if the sanction is a transfer embargo then maybe that's not such a bad option - we are pretty well in one now anyway.

Would the sanction be imposable in the premier league ?

interesting viewpoint.

if a club is in a virtual embargo to try and comply with FFP, then the best option is to stick fingers up at FFP?

None of us unless privy to upto date finances know how away we are from FFP, the last disclosed figures are from the sven era.

 

[Chrysalis]

To do this the Premier League have to be brought into line & stop bullying the Football League as they did over the summer, when the Football League proposed a couple of changes & the Premier threatened to pull all of the money. At this point, the FA should have stepped in, but chose to hid under the table. If the FA continue to do this, the Government will step in with legislation, as all political parties share the same view of the Premiership having too much power.

what were these proposed changes?