So we're rich, but we're skint

[Blue Maniac]

How will the FL decide what is a market rent for sponsorship? Surely something like sponsorship is pretty hard to put a value on other than what people are willing to pay.

Same as anything else then, really. If you were in a shop and saw, for example, two tvs with identical spec - the only difference being the name - but one was £300 while the other was £2,000, which one would you buy? Similarly, if the other 23 clubs are getting, say, in the region of 500 grand a year from their sponsors and City somehow manage to get 3.5 million, I expect the FL would consider this abnormal.

Given that some companies may argue that in the 12 or so months they are sponsoring they may not see an increase in income to cover the value of their sponsorship, but will raise brand awareness that could benefit for decades to come and could pay a premium to cover this.

Again, why would they pay a premium when they don't need to?

 

[fitz]

It's quite different to buying a TV though, given that buying a TV is buying something material whereas sponsorship is more of an investment with anticipated benefits to follow. The price the sponsor is willing to pay would surely depend on what return a business expects to get back from their investment. Larger/global companies who own/invest in a football club could argue their increased TV exposure could reach more people and therefore be more valuable.

Again, why would they pay a premium when they don't need to?

**** knows why anyone would, but it could be argued that KP would be better off to sponsor a club they already have links with, and those now 'in charge' at Leicester are only willing to accept £3.5m as they realise the importance to King Power.

 

[Blue Maniac]

**** knows why anyone would, but it could be argued that KP would be better off to sponsor a club they already have links with, and those now 'in charge' at Leicester are only willing to accept £3.5m as they realise the importance to King Power.

In which case King Power could tell City to go and **** themselves and force them to accept one of the 500k contracts.

 

[Waxed]

Why?

FFFP says there are consequences, but if the 2 teams get promoted they'd say the paltry fine was worth it.
Not making a mockery, just looking at it another way.

It's not paltry though. If they get promoted with £30 million losses, for argument's sake, they'd have to fork out £20m in a fine.

 

[fitz]

In which case King Power could tell City to go and **** themselves and force them to accept one of the 500k contracts.

Which is true, but would if they didn't it'd hardly be the worst decision in business history :icon_wink

 

[fitz]

Similarly, if the other 23 clubs are getting, say, in the region of 500 grand a year from their sponsors and City somehow manage to get 3.5 million, I expect the FL would consider this abnormal.

Aye, but we must be the best supported team in the world seeing as we're on TV every ****ing week....that's worth at least £20m

 

[Mawsley]

Does this mean I can tell PC World to go **** themselves and force them to accept £350 for a new MacBookPro?

 

[Blue Maniac]

Does this mean I can tell PC World to go **** themselves and force them to accept £350 for a new MacBookPro?

:icon_bigg No. If you won't pay the normal price, someone else will.

 

[fitz]

Does this mean I can tell PC World to go **** themselves and force them to accept £350 for a new MacBookPro?

Only if the Football League's auditors say it is worth that much.

 

[fitz]

Rather than risk the auditors, our club shop could put a collectors item issue 1 of 1 bronze turd with a LCFC badge on it up for sale in the club shop at £10million. What is to stop one of the King Power boys buying this turd and as it'll be retail sales income and I assume free from the new rules.

 

[Mawsley]

Rather than risk the auditors, our club shop could put a collectors item issue 1 of 1 bronze turd with a LCFC badge on it up for sale in the club shop at £10million. What is to stop one of the King Power boys buying this turd and as it'll be retail sales income and I assume free from the new rules.

I'll wait till the end of the season and get one then

 

[fox58]

We are also free to loan in and obtain free transfers. Watford are subject to the same FFP rules and will still have to keep within the same financial constraints for paying their wages. What I find strange with Watford is that they are allowed to bring in anyone whilst under a transfer embargo.

Watford have today confirmed 7 permanent signings from Udinese

 

[Lako42]

Watford have today confirmed 7 permanent signings from Udinese

It's amazing what the words 'transfer embargo' actually mean.

 

[SJN-Fox]

It would appear that after closing the loophole to limit foreign loan players, the Football League are doing everything they possibly can to help Watford in their promotion push next year. I wonder what their reaction would be to other clubs under an embargo.

 

[cafe]

You are bigger than Watford so do not worry.Pity you cannot move for Ince now he has signed for Cardiff

 

[Blue Maniac]

You are bigger than Watford so do not worry.Pity you cannot move for Ince now he has signed for Cardiff

That'd be the Ince that turned Cardiff down several days ago would it?

 

[Cate Fox]

That'd be the Ince that turned Cardiff down several days ago would it?

and it gets another bite....

 

[Blue Maniac]

and it gets another bite....

 

[TommyK]

It would appear that after closing the loophole to limit foreign loan players, the Football League are doing everything they possibly can to help Watford in their promotion push next year. I wonder what their reaction would be to other clubs under an embargo.

Crazy situation that makes a mockery of FFP and the transfer embargo.

 

[drew]

If the FFP looks at fair market value for sponsorship etc they should look at players coming in and going out as well surely?

Watford have signed 7 players but doubt they've paid fair market value for them. They can send players back to Udinese or Granada next season for a high figure to give a cash injection by proxy.