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Sorry if this was already posted a while back but I did not see it.

 

Financial Fair Play vs fairy tales: the Football League’s intractable fiscal conundrum


Plenty on us and other clubs too. 

 

https://www.fourfourtwo.com/features/financial-fair-play-vs-fairy-tales-football-leagues-intractable-fiscal-conundrum

 

 

 

Edited by MysticOwl
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There has to be a change. Once you make a loss like ours in one season (£22 million?) then you're already a bit screwed. No doubt our losses will have reduced over the last couple of seasons, but we will still pay the price because of the 3 year rule. Birmingham are in serious bother under the current rules.

Edited by Castleford Owl
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38 minutes ago, sonofbert2 said:

Great article - should be pinned.

 

Can't see anything other than the rules being relaxed/changed.

They have to be changed or the league as a credible  competition will die, much like the EFL have destroyed the league cup.

 

Have little confidence in the EFL though, an organisation complicit in promoting unfair advantage to favourites based on the instructions of the EPL who throw them scraps to keep quiet.

 

Will be an interesting summer when several other teams have FFP issues. The unfortunate victims will be L1 and L2 clubs who will suffer as little money will be spent on transfers, which many lower league clubs rely on. 

 

Instead, the EPL clubs will poach lower league talent for peanuts  to stockpile and loan out to Championship and Scottish clubs....meaning even more money is diverted from the EFL clubs.

 

From my perspective, if owners can prove funding to pay the bills and meet liabilities, why punish them, while simultaneously lending the likes of Bolton money. There is a team who will be expecting a punishment this month, not Bolton who have breached contracts and failed to pay creditors, including staff wages.....but Birmingham who have not missed any payments. It stinks.

Edited by striker
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2 minutes ago, striker said:

They have to be changed or the league as a credible  competition will die, much like the EFL have destroyed the league cup.

 

Have little confidence in the EFL though, an organisation complicit in promoting unfair advantage to favourites based on the instructions of the EPL who throw them scraps to keep quiet.

 

Will be an interesting summer when several other teams have FFP issues. The unfortunate victims will be L1 and L2 clubs who will suffer as little money will be spent on transfers, which many lower league clubs rely on. 

 

Instead, the EPL clubs will poach lower league talent for peanuts  to stockpile and loan out to Championship and Scottish clubs....meaning even more money is diverted from the EFL clubs.

 

From my perspective, if owners can prove funding to pay the bills and meet liabilities, why punish them, while simultaneously lending the likes of Bolton money. There is a team who will be expecting a punishment this month, not Bolton who have breached contracts and failed to pay creditors, including staff wages.....but Birmingham who have not missed any payments. It stinks.

 

This is pretty much bang on for me. 

 

The rules have to be changed and quickly or the championship will get completely left behind the premier league and they may as well have no relegation/promotion (which ironically is what the PL teams want).

 

How can you be limited on what you can spend in a competitive competition where so much is at stake. If you can prove you can afford to spend what you do then there shouldn’t be an issue. Chairman with cash shouldn’t be hamstrung on what they can spend because a two bob millionaire from Bolton can’t afford to pay his staffs wages. 

 

If the EFL did their due diligence properly on owners then there wouldn’t need to be any P&S rules in place. Talk about bolting the gate after the horse has gone.

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Great article, funnily enough it brought up something I was moaning about yesterday.

 

I think it's scandalous relegated prem clubs are allowed to lose nearly 3 times more over 3 seasons than established champ clubs.

 

We should all have to adhere to the same rules or it makes a mockery of the whole thing, although I think parachute payments do that anyway, to me it's always been unfair to 'reward teams' for relegation, they should have to cut their cloth accordingly, this could be done simply by giving payers contracts that cover for relegation.

 

Parachute payments are unfair for a myriad of reasons, but mainly it inflates transfer fees and wages of champ players, which pushes the rest to have to overspend to compete, which in turn creates the mess most champ clubs are in, it needs scrapping to safeguard the whole EFL from overspending.

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2 minutes ago, Weshallovercome said:

Great article, funnily enough it brought up something I was moaning about yesterday.

 

I think it's scandalous relegated prem clubs are allowed to lose nearly 3 times more over 3 seasons than established champ clubs.

 

We should all have to adhere to the same rules or it makes a mockery of the whole thing, although I think parachute payments do that anyway, to me it's always been unfair to 'reward teams' for relegation, they should have to cut their cloth accordingly, this could be done simply by giving payers contracts that cover for relegation.

 

Parachute payments are unfair for a myriad of reasons, but mainly it inflates transfer fees and wages of champ players, which pushes the rest to have to overspend to compete, which in turn creates the mess most champ clubs are in, it needs scrapping to safeguard the whole EFL from overspending.

 

Agree with the comments on parachute payments. 

 

Clubs should have to automatically put relegation clauses in players contracts to reflect the drop in income when going down. However that would just cause players not to sign for teams that are in danger of relegation. Let’s be honest 90% of players are only interested in the money not who they are playing for.

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23 minutes ago, northeastowl said:

 

Agree with the comments on parachute payments. 

 

Clubs should have to automatically put relegation clauses in players contracts to reflect the drop in income when going down. However that would just cause players not to sign for teams that are in danger of relegation. Let’s be honest 90% of players are only interested in the money not who they are playing for.

 

Making the PL separate from the EFL has created the problem, whereby the EFL are in no position to dictate to the PL what they can do.

 

I can understand why some champ clubs want to form a break away league, the PL has effectively become a close shop and the rules surrounding it allows for that.

 

But relegation clauses in player contracts should be a norm throughout the whole of football, it just makes sense, if every club did it a player would have no option.

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Don't know why they don't just keep it simple and say that a club can not lose money in their accounts each year - If a chairman wishes to spend more and plug the gaps, then the chairman must gift that cash to the club, but the clubs finances must read as zero loss every year.

 

Means the club doesn't build any debt, and if a chairman want's to go wild and invest hundreds of millions, thats out of their pocket and not secured against the club

 

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Money counts and the situation currently has already started to affect the transfer market which in turn will stop clubs cashing in on assets to meet FFP.

 

The rules will change and we're going up anyway so won't bother us but good luck to the rest of 'em.....

 

FOREVER AND EVER.........

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The league have to change the rules.

They're heading for a mess.. equivalent to the ITV fiasco otherwise...

 

The FA are close to disrepute as things stand... their uncomfortable relationship with the Premier League is starting to smell...

I can't see how they'll keep the lid on the pot for long.

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Good article in the OP.  

 

I've never quite understood why DC says if we don't go up this season we'll be in trouble with FFP/P&S when the EFL could actually block promotion or a play off place if they decide we've achieved that position by overspending.

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25 minutes ago, David Somni Jennings said:

Don't know why they don't just keep it simple and say that a club can not lose money in their accounts each year - If a chairman wishes to spend more and plug the gaps, then the chairman must gift that cash to the club, but the clubs finances must read as zero loss every year.

 

Means the club doesn't build any debt, and if a chairman want's to go wild and invest hundreds of millions, thats out of their pocket and not secured against the club

 

 

I've considered the same myself but then thought what happens if say DC decided to really go for it by paying huge transfer fees for numerous players on £50k per week over a 5 year contract.  There's still no guarantee we'd reach the promised land, then what would happen if due to unforseen circumstances DC could no longer bankroll the club.  We'd be left with a huge wage bill & transfer fee instalments left to pay with no hope of generating the income to make the payments.

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Agree Mogbad,

 

The whole point of FFP was to protect clubs from owners who are willing to spend and spend trying to chase the PL dream.

Whst if 10 clubs in the Championship all have billionaire benefactors who invest 100 million a year on transfers?

They can’t all be promoted, so some clubs would run up debts of 2 or 300 million to their owners.

 

A few years ago there seemed to be clubs going into admin or threatened with going bust every year.

Now under the FFP no clubs are going into admin and clubs are being saved, so the EF`L would say it’s been a success.

 

The main problem is if every club played by the rules then the 3 clubs coming down from the PL have an unfair advantage with their massive parachute payments.

Edited by sheffsteel
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