Does then mean we can spend silly money? Whats the implications here?
@catcherintherye
Ill be honest mate, as things stand I don't think the news is as big as many of us would like to believe. You know me, I'm an optimist, I've been very much in the Usmanov in camp from minute one and felt that FFP would have to be adapted. If those are the recommendations and the only recommendations then not much changes.
From what I can see they are not going to immediately judge 2020 at the end of this season. So all of the clubs will not be punished for big losses. However they will judge it the following season. The sop they are giving is that the 2020 year can be balanced alongside the 2021 and you take the average. So it dilutes the problems this year, and extends the period of time before you get punished, but at present it is not going to get rid of this.
I mean a couple of points. This will suit the top teams who have had incomes smashed in 2020. If you normally make 40m, and then lose 200m, the two years combined will then be say a 110m loss. It will still have an impact, but it gives a lot more breathing space. We are more probably now a business that might have lost say 70m, and due to Covid we will lose 100m. So we have if you average them we lose 85m. Still some breathing space but not as much.
There are some assumptions in there. The first is that 2021 we returns back to normal. I mean it's possible, but it's best case scenario that from Jan 1st stadiums are completely full, sponsors/TV paying the same amount, same amount of commercial sales etc. I'll be frank for different reasons I don't see that. I see the contagion in businesses raging into 2021 and likely some restrictions on how many seats are sold in 2021.
The other important phrase, buried away at the bottom is "allowing specific Covid 19 adjustments". That is the key phrase as to what will be allowed. I think this will be very difficult to enforce. I think it probably gives enough grounds for further sliding. We could theoretically say we lost the ability to sell Richarlinson for £100m+ and show a 70m+ profit, so it has to be factored in.
I think this legislation is a first step. Once you start tinkering with a system it tends to be more reformed. At present though, its by no means a green light for mass spending. All you could say, is the losses in this period would only count for half, so on that basis perhaps makes sense to pile up.