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Post by oggyoggy on Jul 14, 2013 10:09:55 GMT
Can someone kindly explain the new financial fair play rules. A dummies guide would be great. What must each club do? When do they come into place? What happens if you breach them? Is this just in UK or accross Europe? I have read so many contradictory statements about them that i would like some clarification Thanks
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Post by Plave on Jul 14, 2013 10:28:43 GMT
It's a UEFA rule, the worst sanction of which they can impose is refusal to allow a team to compete in European competition so unless you're a regular CL qualifying team it's pretty irrelevant.
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Post by oggyoggy on Jul 14, 2013 10:45:17 GMT
It's a UEFA rule, the worst sanction of which they can impose is refusal to allow a team to compete in European competition so unless you're a regular CL qualifying team it's pretty irrelevant. Thats what i thought. So why are people on this site saying our wage bill can only increase by 4mill? We are not in europe therefore it doesnt matter surely? Which begs the question - what is the point of them?
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Post by ChrisKamarasPerm on Jul 14, 2013 10:46:43 GMT
So you don't over spend to get into Europe.
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Post by stokecity4eva on Jul 14, 2013 10:57:24 GMT
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Post by drfishy on Jul 14, 2013 11:45:05 GMT
Isn't there also some FA/Premiership financial rules coming in that should stop clubs getting in a mes like Portsmouth?? These are probably more relevant to most of the clubs in the Prem.
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Post by oggyoggy on Jul 15, 2013 10:09:07 GMT
This doesn't specifically set out what clubs can no longer do. it just says: Only a club’s outgoings in transfers and employee benefits (including wages) will be counted over income from gate receipts, TV revenue, advertising, merchandising, sales of players and prize money is included in the assessment. Any money spent on infrastructure, training facilities or youth development will not be included. Counted and then what? Are the above outgoings not allowed to exceed the above listed income? Can somebody clarify? I don't have the time to read through the entire 93 pages of the UEFA document. Also if it is only related to entering Europe, arguably (I do not support this view) it is better for teams like us to not be in the Europa League therefore we can spend as much as we like as we will never, ever finish in the top four and qualify for the Champs League (unless they change and give a place to FA Cup winners).
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Post by Deleted on Jul 15, 2013 10:11:41 GMT
its to keep clubs like Man united, Arsenal and Liverpool at the top and stop anyone else competiting
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Post by Lakeland Potter on Jul 15, 2013 10:28:35 GMT
Isn't there also some FA/Premiership financial rules coming in that should stop clubs getting in a mes like Portsmouth?? These are probably more relevant to most of the clubs in the Prem. Correct - the UEFA Financial Fairplay rules are about not making losses which are unsustainable and the only sanction as far as I can see is that clubs which breach the rule cannot compete in Europe. The Premier League rules which have been brought in following the new Sky/BT deals, limit the amount the wage bill can increase by each year (in our case £4 million) and are designed to stop all the new TV money being frittered away on player's wages.
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Post by thebet365 on Jul 15, 2013 10:51:27 GMT
Isn't there also some FA/Premiership financial rules coming in that should stop clubs getting in a mes like Portsmouth?? These are probably more relevant to most of the clubs in the Prem. Correct - the UEFA Financial Fairplay rules are about not making losses which are unsustainable and the only sanction as far as I can see is that clubs which breach the rule cannot compete in Europe. The Premier League rules which have been brought in following the new Sky/BT deals, limit the amount the wage bill can increase by each year (in our case £4 million) and are designed to stop all the new TV money being frittered away on player's wages. From the way I've read these new rules, we aren't fully restricted to a 4 Million increase Max, If there's no other outside revenue increase then yes we would be, but If we secured say a 3 year sponsorship deal that is 5 Million more than our current 1, we could increase our wage bill by 9 Million ??
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Post by Lakeland Potter on Jul 15, 2013 10:53:12 GMT
Correct - the UEFA Financial Fairplay rules are about not making losses which are unsustainable and the only sanction as far as I can see is that clubs which breach the rule cannot compete in Europe. The Premier League rules which have been brought in following the new Sky/BT deals, limit the amount the wage bill can increase by each year (in our case £4 million) and are designed to stop all the new TV money being frittered away on player's wages. From the way I've read these new rules, we aren't fully restricted to a 4 Million increase Max, If there's no other outside revenue increase then yes we would be, but If we secured say a 3 year sponsorship deal that is 5 Million more than our current 1, we could increase our wage bill by 9 Million ?? I must admit I haven't seen that aspect at all. Have you got a link?
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Post by thebet365 on Jul 15, 2013 10:57:56 GMT
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Post by foster on Jul 15, 2013 10:59:35 GMT
That pretty much sums it up.
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Post by Lakeland Potter on Jul 15, 2013 11:01:56 GMT
Cheers. I'm not convinced that it is a good idea to have special arrangements for sponsorship given that Man City will just dream up a figure which suits them! I suppose the good news in our case is that our main sponsor is also our owner which enables us to get round the rules if we needed to - but that assumes Bet365 would be willing to increase their sponsorship.
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Post by thebet365 on Jul 15, 2013 11:08:49 GMT
That's exactly what is happening though, it's sort of clever on the League/Revenue's side because no longer will money be allowed to be pumped in as interest free loans/shares e,t,c which can be called in at any time by the owners, or they pull the plug and walk. Now they have to introduce it as a proper income via another company in the form of sponsorship, which will be taxed/restrict losses but also secures the clubs well being.
It's basically got to come in on the profit & Loss side of the club now and not via the liabilities on the balance sheet.
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