FFP News that affects all Championship Clubs

[@owlstalk]

QPR have agreed a settlement of almost £42m with the English Football League after an arbitration panel dismissed the Championship club's claims that Financial Fair Play rules are unlawful.

[@owlstalk]

[oh_weds_we_love_you]

Broken down;

• £17m fine.
• £3m EFL costs.
• Shareholders capitalise £22m of outstanding loans (no idea what that means!).
• 2019 January transfer embargo.

Rumoured time for payment agreed to be over 10 financial years.

 

Let's not forget this was a club that didn't only break the rules, actually smashed the rules to pieces, and have taken years appealing the initial decision.

 

If, say Wednesday, were to break FFP rules by a fraction of what QPR did, and fess up and pay the fine, the punishment won't be anywhere near as severe.

 

I'd like to know where this money goes - what do the EFL do with it?

Edited July 27, 2018 by oh_weds_we_love_you

[hatcheeks]

I thought Bournemouth were only fined £4m?

whats that all about?

[alanharper]

1 minute ago, oh_weds_we_love_you said:

Broken down;

• £17m fine.
• £3m EFL costs.
• Shareholders capitalise £22m of outstanding loans (no idea what that means!).
• 2019 January transfer embargo.

Rumoured time for payment agreed to be over 10 financial years.

 

Let's not forget this was a club that didn't only break the rules, actually smashed the rules to pieces, and have taken years appealing the initial decision.

 

If, say Wednesday, were to break FFP rules by a fraction of what QPR did, and fess up and pay the fine, the punishment won't be anywhere near as severe.

 

I'd like to know where this money goes - what do the EFL do with it?

 

I'm sure at one time they said any fines would be split amongst the other clubs who were in the division at the time that the offending club broke the rules, but they seem to have changed that and the EFL keep the lot now. Probably spend it all on Werthers Originals and prossies.

 

[Owls77]

This is the exact reason why we have seen no incomings.

[Frazzlebeak]

20 minutes ago, Owls77 said:

This is the exact reason why we have seen no incomings.

Because we’ve spent up on Werthers? 

[owlZfan84]

What I don't understand is Nixon is saying QPR can still sign players.

 

[Prince]

31 minutes ago, Owls77 said:

This is the exact reason why we have seen no incomings.

 

Or its because the incompetents running the club wasted money on a raft of nothing signings and kept a manager on for half a season who was treading water at best. Follow it up with a stupid survey that was used to lube us up before he tried to bend us over. Not getting my hard earned cash to pay for their idiotic running of the club!

Edited July 27, 2018 by Prince

[oh_weds_we_love_you]

12 minutes ago, owlZfan84 said:

What I don't understand is Nixon is saying QPR can still sign players.

 

 

Embargo is for 2019 January window. It's 2018 currently.

[owlZfan84]

Just now, oh_weds_we_love_you said:

 

Embargo is for 2019 January window. It's 2018 currently.

 

Ahh, I see.

 

My bad, I'd totally misread the article!

 

[Daizan10]

39 minutes ago, owlZfan84 said:

What I don't understand is Nixon is saying QPR can still sign players.

 

Ban is in Jan

[MaliceInBlunderland]

1 hour ago, folger said:

Genius that is introduce a set of rules to prevent clubs overspending and getting into financial hard ship then use those rules to impose financial hardship on a club not hypocritical at all.

 

Exactly.

 

Prize winning stupidity of the highest order, or a get rich quick scheme and f**k the clubs (not saying clubs shouldn't be punished, just not in this manner).

 

Wouldn't take the 10 year pay back plan either, or EFL might put in a claim for repetitive strain injury from constantly taking payments.

 

 

[Whatahoot]

2 hours ago, oh_weds_we_love_you said:

Broken down;

• £17m fine.
• £3m EFL costs.
• Shareholders capitalise £22m of outstanding loans (no idea what that means!).
• 2019 January transfer embargo.

Rumoured time for payment agreed to be over 10 financial years.

 

Let's not forget this was a club that didn't only break the rules, actually smashed the rules to pieces, and have taken years appealing the initial decision.

 

If, say Wednesday, were to break FFP rules by a fraction of what QPR did, and fess up and pay the fine, the punishment won't be anywhere near as severe.

 

I'd like to know where this money goes - what do the EFL do with it?

As far as the outstanding loans by shareholders to the club is concerned, it means the owners have put loans in to shore up the balance sheet/keep the club going financially, whilst making big annual losses. They must now make these loans into permanent capital (turn them into shares) and cannot take any repayments or interest payments  for them. It would hurt a major shareholder, if he thought he would be able to withdraw these monies for something in the short term. However, it could enhance the clubs balance sheet should the shareholder wish to sell or raise a loan from a bank.. If the shareholder is worth a mint, then the initial cash injection via loans and the amortisation of those loans into capital would not cause to much bother to the owner.

[oh_weds_we_love_you]

42 minutes ago, Whatahoot said:

As far as the outstanding loans by shareholders to the club is concerned, it means the owners have put loans in to shore up the balance sheet/keep the club going financially, whilst making big annual losses. They must now make these loans into permanent capital (turn them into shares) and cannot take any repayments or interest payments  for them. It would hurt a major shareholder, if he thought he would be able to withdraw these monies for something in the short term. However, it could enhance the clubs balance sheet should the shareholder wish to sell or raise a loan from a bank.. If the shareholder is worth a mint, then the initial cash injection via loans and the amortisation of those loans into capital would not cause to much bother to the owner.

 

Thanks! So, does it mean the actual fine QPR pays out of the club to the EFL is £17m, plus the £3m costs? So the "fine" is actually only £20m?

[Shetland Owl]

Thought that points could be deducted as well. That's the only way to stop clubs breaching the rules

[Whatahoot]

1 minute ago, oh_weds_we_love_you said:

 

Thanks! So, does it mean the actual fine QPR pays out of the club to the EFL is £17m, plus the £3m costs? So the "fine" is actually only £20m?

Yep that's about right and fine may be paid over a number of years too.

As I said, a really seriously wealthy owner may well just pay it off in one go up front. I think something like that , ie finding an immediate £20m to settle a clubs commitment, would be difficult for our owner to find in one go imo.

[Hookowl]

5 minutes ago, Whatahoot said:

Yep that's about right and fine may be paid over a number of years too.

As I said, a really seriously wealthy owner may well just pay it off in one go up front. I think something like that , ie finding an immediate £20m to settle a clubs commitment, would be difficult for our owner to find in one go imo.

 

One thing I don't get. If it's the club that's fined and not the owner personally. If the fine is paid in full does not that amount count towards FFP or P&S in the year it's paid ?

[oh_weds_we_love_you]

3 minutes ago, Whatahoot said:

Yep that's about right and fine may be paid over a number of years too.

As I said, a really seriously wealthy owner may well just pay it off in one go up front. I think something like that , ie finding an immediate £20m to settle a clubs commitment, would be difficult for our owner to find in one go imo.

 

Cheers mate, very useful.

 

If Mr Chansiri has the cash, I'm even more curious now as to why he doesn't stick 2 fingers up to FFP. He could blow £50m this transfer window and our punishment - if promotion failed - wouldn't be anywhere near as severe as QPR. So, breaking FFP would cost him a modest fine (by rich people's standard), a one transfer window embargo (we seem to be in a self-imposed one now anyway), and he'd have to turn some loan to the company into equity - and that would be worse case scenario given the precedent set with QPR.

 

Makes me even more sure that Mr Chansiri is up to the limit he's prepared to invest (fair enough!).

[Whatahoot]

5 minutes ago, Whatahoot said:

Yep that's about right and fine may be paid over a number of years too.

As I said, a really seriously wealthy owner may well just pay it off in one go up front. I think something like that , ie finding an immediate £20m to settle a clubs commitment, would be difficult for our owner to find in one go imo.

Also, having a £20m liability sitting on the clubs accounts, would not be particularly attractive to any future buyer of a club, with any such commitment to take on. Sort of like paying for someone else's previous overspending.