Great post. A club like United can be a billion in debt, a club like Chelsea can spend a billion in two transfer windows. Arsenal and Spurs have built brand new stadiums. Liverpool have expanded their stadium twice, United have a 75k seater stadium. Chelsea have already breached ffp and been handed a transfer ban. All of the above clubs wanted to leave and start their own league, all stayed, and got a 3m fine each.
Brighton you are correct to use. Only a 32k stadium which never looks full. They will soon have teams ripping them off for players because now clubs understand their model. Buy low price, do well, and sell for high. Bissouma left, Caiedo left, Burn left, next will be Mitoma, Ferguson and Estupian. They are a feeder club and will have to be that in order to stay where they are.
United are a money machine and ironically they started the over commercialism of football in England. Debt should be but it isn’t the main driver when it comes to FFP/PS .
Arsenal did indeed build a new stadium but FFP wasn’t the drain some think . Wenger was a genius in the transfer market but once he failed to qualify for the CL.
I really don’t like defending Spurs but Levy has managed their finances with a fist of iron. Spurs had one of the lowest ratio % of wages to income in Europe and he managed to unearth diamonds when it came to transfers and in terms of negotiating he has been a master. They managed to fund the pre development costs from income and cheap borrowings
Liverpool have borrowed significantly from their owners but again their income has grown significantly so it seems isn’t impacting on them
Chelsea have never been charged with breaching FFP. The transfer ban was Imposed by FIFA and revolved around under 18 year olds from outside the EU. Not so much that they signed under age players but played them in trials which FIFA argued constitutes signing players.
After the new owners took over during DD they discovered that certain information submitted via the PL appeared incomplete.
A settlement has already been reached with UEFA and we wait to see what charges are levied. It’s unlikely that they will be under P&S Regulations Initially if at all. But the regulations under which the matter will be viewed under can and often does lead to points deduction.
That said it’s possible, although unlikely ,that due to the matter being self reported that financial settlement will be agreed which is an option. When the new owners bought the club they withheld £100 m from the proceeds of sale pending settlement of regulator matters”
Transfer market isn’t anywhere near the best source of information re transfer fees nor to a degree is the sum you pay the important thing to factor in when it comes to affordability the main number to focus in on is the charge to amortisation.
As most will know any transfer fee is written off over the term of the contract. So sign a player for £100million on a 5 year deal £20 million per annum appears in the accounts. Sign that same player on a 8 year deal then the sum reduces to £12.5 million. It’s one of the reason Bohleys policy has been to sign players on long deals al a IEFA rule change will now restrict amortisation to 5 years and it’s likely that the PL will follow.