Financial Fair Play investigation

[Mr Popodopolous]

Championship doesn't make £3billion a year based on the teams in it.

The minute you start hitting teams like the EFL does, that's when said teams begin to leave to a super league, and you ain't a £3billion a year brand.

This is fair although legislation to prevent a breakaway could offset this. Then a League can act with a freer hand.

La Liga have restrictive and forward looking mFFP rules with budget approval, although I don't see deductions yet. Barcelona are labouring massively and this is supplental to UEFA ones.

 

[Mr Popodopolous]

I fully agree with the sentiment but the football world has changed with the amount of money involved. When u see Man Utd with a value of 5Bn or 6Bn it will be money that determines the outcome rather than what is morally correct. Burnley lost about 100m due to relegation and has threatened to sue the PL because of the alleged breaking of the rules by Everton. I think the outcome of this will be based on how the PL can remove any potential liability from themselves. The best way for that is for the PL to find EFC has not broken any P&S rules. But, if there is clear evidence of rule breaking they will hand down whatever punishment gets them out of the firing line imo

I'd argue Burnley have a claim of, if at all, more like £50-60m owing to Parachute Payments.

If it was a straight fall of PL to EFL with nothing in between pushing £100m is about right.

A lot of Derby fans think that the Football League tried to shift liability from themselves to Derby in a similar way.

 

[Simon Buttle]

Respectfully, that means bupkis to me.

There will be no takeover until there's clarity on our league status.

Agree, also I'm pretty sure that Keiron Maguire bloke said we should swerve the 777 people a while back due to them doing very little with any of the previous clubs they have become involved with.

 

[cantlivewithem]

Perhaps its a ploy the club has asked us to be referred with the outcome being that we get a ban on signing players. We have a manager that is perfect with working with nothing and the board can say that its not their fault that we buy no one again in the summer

 

[Mr Popodopolous]

Perhaps its a ploy the club has asked us to be referred with the outcome being that we get a ban on signing players. We have a manager that is perfect with working with nothing and the board can say that its not their fault that we buy no one again in the summer

The only thing about a transfer ban is that ironically Everton are probably in a position where to 2022-23 and who knows with 2023-24, but probably then too is that it would be deployed too late. The players would be in place...so delayed punishment can form denied justice but possible.

 

[good times bad times]

Reading this today I can't work out whether we are about to be hit by a Boeing 777 or are about to enter administration Derby-style.

Already looking forward to the next episode tomorrow.

 

[Mr Popodopolous]

From a regulatory analysis perspective it will be interesting to see if the League slap some kind of auto embargo on as part of the mere process in similar style to the EFL. Goes for Man City and potentially Chelsea too.

I remember in Spring 2018 both Birmingham and Sheffield Wednesday were put under a Soft Embargo.

Certainly in Spring 2019 Aston Villa, Derby and Sheffield Wednesday were, perhaps Reading too.

Had the Stadium sale loophole been shut Aston Villa would have been in a heap of trouble e.g. Stoke likely would habe failed too, Birmingham would have failed again, Derby w number of times, Reading likewise, Sheffield Wednesday once more at least.

 

[davek]

It would suit us right now, but it would just be something every single club would do.

Spend like it’s going out of fashion and then claim “We overspent, but look, we are heading on the right trajectory now”

They won’t give any traction to that at all.

Of course they will.

That's like saying that the only thing that matters in a RTA inquiry is the moment of impact.

Any charge will be about 2021/22, but that doesn't come about in isolation.

 

[Mr Popodopolous]

Of course they will.

That's like saying that the only thing that matters in a RTA inquiry is the moment of impact.

Any charge will be about 2021/22, but that doesn't come about in isolation.

What from precedent has been more likely to make an impact albeit at EFL level is if the years into 2021-22 are trending in the right direction.

I'd say it is mixed with Everton. Wages up £18m from 2019-20 to 2020-21 and made Player Additions of £81m.

Although amortisation fell by £17m...but again how much of that was down to a conveniently allocated impairment put towards Covid.

A sceptic might wonder if the board believed that FFP would be scrapped. Easier to mitigate if wage bill doesn't rise in the full Covid year and £81m in transfer additions do not take place.

 

[peteblue]

A £22M fine paid between the 6 = £3.7M each.

That‘ll teach ’em… it’s barely a round of drinks…..

 

[DavidH]

The problems start when all the other clubs start grassing.

 

[Villa_Fan]

What from precedent has been more likely to make an impact albeit at EFL level is if the years into 2021-22 are trending in the right direction.

I'd say it is mixed with Everton. Wages up £18m from 2019-20 to 2020-21 and made Player Additions of £81m.

Although amortisation fell by £17m...but again how much of that was down to a conveniently allocated impairment put towards Covid.

A sceptic might wonder if the board believed that FFP would be scrapped. Easier to mitigate if wage bill doesn't rise in the full Covid year and £81m in transfer additions do not take place.

You can't impair an amortisation amount. Amortisation is based on the money paid for the player and not the value of the player

 

[Mr Popodopolous]

You can't impair an amortisation amount. Amortisation is based on the money paid for the player and not the value of the player

Oh I know but if you look and I'm sure you have looked, Everton appear to have certain amounts as Covid Impairment. See also Stoke and Fulham. I forget the exact amounts...but yes the Intangible asset Player Impairment, clubs do it all the time.

 

[Villa_Fan]

From a regulatory analysis perspective it will be interesting to see if the League slap some kind of auto embargo on as part of the mere process in similar style to the EFL. Goes for Man City and potentially Chelsea too.

I remember in Spring 2018 both Birmingham and Sheffield Wednesday were put under a Soft Embargo.

Certainly in Spring 2019 Aston Villa, Derby and Sheffield Wednesday were, perhaps Reading too.

Had the Stadium sale loophole been shut Aston Villa would have been in a heap of trouble e.g. Stoke likely would habe failed too, Birmingham would have failed again, Derby w number of times, Reading likewise, Sheffield Wednesday once more at least.

Have u considered that the strategy may have been to overspend and then sell the stadium according to the rules of FFP? It was said at the time that they had planned to sell the stadium when they did. It wasn't like there was much risk of the sale possibly falling through as the owners were selling the club to themselves. I don't think there was any risk of being in a heap of trouble. The worst case scenario was that if Villa did not get promoted they would have had to sell players to increase revenue.

 

[kenada_blue]

This is fair although legislation to prevent a breakaway could offset this. Then a League can act with a freer hand.

La Liga have restrictive and forward looking mFFP rules with budget approval, although I don't see deductions yet. Barcelona are labouring massively and this is supplental to UEFA ones.

La Liga can't have a "forward looking FFP" when £500mill of £1.5billion of TV money goes straight to Barca, Real, and Athletico, the dominant top 3 for over a decade, even despite Barca and Real being in the mire financially.

And you think they're gonna deduct points or fine Barcelona? No chance. Theyve slap them with "you can sign or register players"...and they go an sign and register players anyway.

Bottom line is La Liga is very much in the same boat as the PL. It's a brand that can't afford to punish teams to the level of the EPL as they don't want to scare away the money

Slaps on the wrists all round.