Leicester face questions about FFP

[ThaiSweetChilli]

The good news at the moment is that this loss is not the final figure we need go look at. These are our financials, but not the eventual financial fair play figures.

Also, by the end of this season, lots of high earners (some more talented than others) will have left.

The obvious, ideal situation is that we get promoted, have a 4 point penalty or so, get rid of some useless high-earners and bring in some young hungry players with desire. Sell an asset for 4x what we paid and start fresh. Long shot but crazier things have happened.

 

[SilverFox]

The good news at the moment is that this loss is not the final figure we need go look at. These are our financials, but not the eventual financial fair play figures.

I don’t think we have a stadium we can bullshit a £75m annual depreciation figure for. If we were top 6 premier league we could make up any kind of bullshit and it would fly.

 

[Lako42]

I don’t think we have a stadium we can bullshit a £75m annual depreciation figure for. If we were top 6 premier league we could make up any kind of bullshit and it would fly.

The only thing that depreciates that quickly here is the squad after everyone finds out how utterly shit all the big signings actually are.

 

[Joe_Fox]

There should be a global salary cap.

Of course there should be. It's so obvious. It would make the game far more fair, competitive and interesting. It would also serve as a mechanism for increased equity and equality, and therein lies the problem. It would affect the status quo, and those currently sitting at the top table aren't at all interested that, and will in fact do whatever it takes to prevent any change that affects their bottom line negatively. On the flip side, they are very keen on doing the complete opposite. Why do you think this sudden adherence to FFP is happening? Previously it was some sort of vague guideline which pretty much every club dismissed and kept on haemorrhaging money in search of glory. Now, with clubs like ours, after years of financial overreaching, they clamp down, knowing full well it will serve them well two fold. The rich get richer, the resr get poorer. It's a tale as old as time I'm afraid.

At least we found our glory. And they'll never, ever, take that away, nor understand how utterly amazing it was for those, us, involved.

Let them have their riches. You can't take it with you any way. Let them have all the trophies. They are all worthless now.

 

[Brown Nose]

A salary cap won't work.

As we've already seen, clubs just create 'off the books' payments or incentives.

Football is broken.

 

[pork pie fox]

A salary cap won't work.

As we've already seen, clubs, including ourselves, just create 'off the books' payments or incentives.

Football is broken.

Agreed

 

[H T B]

Out of interest , how many breaches of ffp are we actually guilty of?
Aren’t Man City supposed to be in breach on 119 accounts?
The silence is deafening

 

[fitz]

Out of interest , how many breaches of ffp are we actually guilty of?
Aren’t Man City supposed to be in breach on 119 accounts?
The silence is deafening

I think i read that man city's wages/turnover was something ridiculously made up like 59%.

 

[Brown Nose]

I think i read that man city's wages/turnover was something ridiculously made up like -59% and their players actually owed them money.

I can believe that.

 

[fox58]

Out of interest , how many breaches of ffp are we actually guilty of?
Aren’t Man City supposed to be in breach on 119 accounts?
The silence is deafening

List of the charges that Man C face

Failure to provide accurate and up-to-date financial information from 2009/10 to and including 2017/18
54 counts

Failure to provide accurate financial reports for player and manager compensation from 2009/10 to and including 2017/18
14 counts

Failure to comply with UEFA’s regulations, including UEFA’s Club Licensing and Financial Fair Play Regulations
5 counts

Breaches of Premier League profitability and sustainability regulations from 2015/16 to and including 2017/18
7 counts

Failure to cooperate with Premier League investigations from December 2018 - present
35 counts


115 charges in total

 

[camberwell fox]

Out of interest , how many breaches of ffp are we actually guilty of?
Aren’t Man City supposed to be in breach on 119 accounts?
The silence is deafening

Unsure of ours but Man City are facing 115.

Unfortunately they have a whole raft of lawyers who have kicked the allegations into the long grass by various discredited means.

Their outcome is rumoured to be mid to late 2025. So although I av we t we have fallen short of the rules how can punishment be applied to some and yet others are allowed to continue ‘as is.”

 

[Fox Fan]

Their outcome is rumoured to be mid to late 2025. So although I av we t we have fallen short of the rules how can punishment be applied to some and yet others are allowed to continue ‘as is.”

They've already got out of being punished once, at our expense no less. We would almost certainly not be in this position had we had the season of CL football that 5th place should have provided.

Man City overturn two-year European ban

Manchester City successfully overturn their two-year ban from European club competitions.

www.bbc.co.uk

 

[H T B]

****ing stinks

 

[SilverFox]

If we get promoted is the smart thing for us to just take it on the chin, cut the squad, get rid of everyone we can, buy cheap, pay as little as we can for a decent championship team, and then accept relegation (and a potentially record low points total). Surely that’s the priority for us? Turn a profit for a change and aim to reset.

It’ll be shit for some time, but the greatest opportunity this club had/ever will have to kick on has been utterly squandered.

 

[Orifice]

I wonder who the will be manager will be next season?
Will Enzo wish to carry on?

 

[camberwell fox]

If we get promoted is the smart thing for us to just take it on the chin, cut the squad, get rid of everyone we can, buy cheap, pay as little as we can for a decent championship team, and then accept relegation (and a potentially record low points total). Surely that’s the priority for us? Turn a profit for a change and aim to reset.

It’ll be shit for some time, but the greatest opportunity this club had/ever will have to kick on has been utterly squandered.

So get promoted this season to get relegated the very next one? That sounds great.

If our losses this season are in the EFL and we are in the PL, does the three season thing start again? Surely the EFL would have no jurisdiction on PL clubs?

I also think the rules will change again this season so we just have to hold tight and fight our corner.

As I’ve said previously we lost £30 in PL revenue due to our finishing position and we had to pay off **** chops £20-£40 million plus other unexpected finabcials.

This accounts for between £50 and £90 million.

We have to trim our wages but organically this will happen at the end of this season anyway so there is little point in hoisting the white flag is there?

 

[SilverFox]

So get promoted this season to get relegated the very next one? That sounds great.

If our losses this season are in the EFL and we are in the PL, does the three season thing start again? Surely the EFL would have no jurisdiction on PL clubs?

I also think the rules will change again this season so we just have to hold tight and fight our corner.

As I’ve said previously we lost £30 in PL revenue due to our finishing position and we had to pay off **** chops £20-£40 million plus other unexpected finabcials.

This accounts for between £50 and £90 million.

We have to trim our wages but organically this will happen at the end of this season anyway so there is little point in hoisting the white flag is there?

No. It’s the last 3 seasons, so the earliest just drops off the end.

We have to start turning a profit. It’s as simple as that. It means we find ‘our level’ for a bit rather than spending what we simply do not have.

 

[Brown Nose]

The problem is that we are in a three year rolling cycle and the last two of those seasons show a loss of £92.5m (21/22) and £89.7m (22/23). The third season in this run showed a loss of £33.1m (20/21) showing a total of £215.4m.

As we were a PL side throughout those seasons, we are allowed to lose £35m per season = total of £105m.

We will be able to offset some of those losses against things that are discountable but we've smashed all limits and will get sanctioned next season whatever league we're in. What we've done is far worse than what Everton or Forest did.

Our accounts for 23/24 will be worse than the last two. The massive drop off in revenue is in no way offset by the sales of Barnes and Castagne minus the signings we made last summer. Even if some players had clauses to reduce wages, and others agreed to defer wages which will be repaid on promotion, the losses this year must be well in excess of £100m. I just cannot see how they can't be. Worst case scenario could see us lose £150m this year - it really is going to be horrific. Remember that the club made a deliberate decision not to lay off any staff last summer so all our PL costs remain.

Then consider the fact that we lose the £33.1m from the three year reporting period to be replaced by the £100m+ AND we have a lower threshold because we are not allowed to lose £35m this season as we're in the Championship (that is reduced to £15m).

That means that this time next year, everything will look much worse than it does now. We'll have losses of approx £300m+ against allowable losses of £85m.

Even a complete fire sale before the end of June 24 won't make any material difference to this. Our squad no longer has significant value in it that we can sell. Even selling a Dewsbury-Hall for something like £30m in June wouldn't touch the sides.

So whatever league we're in next year will hammer us and whatever league we're in the year after will hammer us even more.

The only way out of this inevitability is a change in the rules but even that isn't going to be so dramatic as to make what we've done okay. This must be why we've gone on the offensive with the PL and FL in legal action because there is literally no point in us trying another option. We're fecked.

That does make the league we're in next year relatively unimportant in my view. Promotion might sound like an important thing because of the money involved but the sanction, together with no ability to add new players as I'd expect us to be subject to a transfer ban, means that we'll be relegation fodder. Only to then get hammered again by the FL the following season.

The only way out of this is to turn the accounts around. That means losing all high earners and massively reducing the size of the squad. It also means drastic cuts to support staff, selling off Belvoir Drive, upping ticket prices and anything else we can do. I really don't understand why we didn't do this last summer. All we've done is delay coming out the other end of all this by another year.

 

[SilverFox]

Club also has to work harder at boosting revenue streams.

 

[H T B]

Isn’t that where a rolling 3 season aggregate falls over?

Say in 3 seasons you go over the threshold, you get punished.

In the 4th season you act drastically and get rid of virtually all your debt, but the amount of the 2 preceding seasons still take you over the threshold, so you get charged, even though you have done as much as you physically can.

In my eyes that is not right.