Any ideas on whats roughly our current FFP standing/losses as of the last 3 years?
@Neiler
How much can be offset for the stadium costs/Covid pandemic?
I make it we are breach mate, but it’s harder to work out than normal given Covid and likely the PL clandestinely relaxing the rules - essentially Paul Joyce reported that the clubs unanimously voted to relax the stringeny of the three year period, while they also voted to write off loses attributed to Covid. So we’re not quite sure what the boundaries are.
First thing to say, our financial year ended in June so 20/21 is done. Anything we buy/sell/wages saved goes into next year.
Presently our projected losses are
17/18 = - 13 mill
18/19= -111 mill
19/20= -139 mill
20/21 = - 175mil - accounts not out till Dec, so a projection.
It gets a bit convoluted with Covid rules as the take an average from 19/21 in terms of losses and group the years together so our average loss in those years is 157 mill, rather then the headline losses above those years.
So total losses of: 282 mill
We are allowed allowances for things like women’s football, community development, Youth development, Covid: I think over the period, we can write of about = 110 million.
So were about 70 odd million in breach. There are however BMD costs at some stage that will be capitalised, reported to be 60 mill so that brings us down to 110 million.
As some of the above are projected figures and given the Covid situation ( I factored in 50 mill), I doubt we will see any sanction for a breach, while I think some clever accounting will see us in under the 105 mill deadline. So ultimately we won’t be sanctioned.
However as the above figures show, the club is loosening money hand over fist and it’s growing year on year.
We have three options to cover the losses:
1. We borrow, very dangerous and unsustainable, we already have utilised 80 mill in credit facilities.
2. We sell players, we know we’re terrible at thst.
3. Moshiri picks up the tab, this he has done up until now, half the new share issue was the cover some of the losses above, the other was to start the 1st phase of BMD. Whether he goes again to fund this window, let’s see, early indications are we are bargain basement it, but he may fund some big signings. The problem isn’t transfer fees it’s wages. If you spend 100 mill on players, you are taking on 40 mill on wages and as the above shows the business can’t afford to take on those wages without making continued and growing annual loss, something will give.
So how much do we have to spend this summer, likely we will get away with PL rules. We’re at the limit. The company is loosening money hand over fist, growing year on year. It’s likely down to the owner as to how much he wants to continue to fund the annual loses at the club, whether we spend a lot, as you see though above the picture is detiorating year on year and is it good money after bad? With a ground to fund after dropping the guts on half a billion already? The business itself is a basket case in conventional terms.
