Time To Break FFP?

[mill]

(one thing I’ve always assumed though is that players are ‘depreciated’ at an accelerated rate rather than in a straight line. that just made sense to me given the nature of the ‘asset’. I honestly don’t know just how it’s handled for players. If it’s in a straight line then 17/18 wouldn’t be the bad one, it’d be more like 18/19 I think)

 

[bluenorthwarrior]

Mulling over why we haven't got a sleeve sponsor yet....it is not difficult to attract a sponsor so odd that a week out from kick off we haven't announced anything.

Could it be deliberately waiting to see extent of spend before a 'preferred' partner announced for a figure that meets the ffp need?

Obviously not the biggest income but could be packaged in order to raise the value, such as also main sponsor for the women's team and whatever other squads were not in the cazoo deal?

 

[ToffeeTim]

Mulling over why we haven't got a sleeve sponsor yet....it is not difficult to attract a sponsor so odd that a week out from kick off we haven't announced anything.

Could it be deliberately waiting to see extent of spend before a 'preferred' partner announced for a figure that meets the ffp need?

Obviously not the biggest income but could be packaged in order to raise the value, such as also main sponsor for the women's team and whatever other squads were not in the cazoo deal?

Our attraction to a sponsor is increased a lot by someone with the social media following of James. It makes sense to wait then get a better deal.

 

[Bebeto]

My theory is that the board is planning for the new stadium to get planning permission late 2020 early 2021 whilst selling goodison for let say 100 millions...then agree with goodison Park buyers a low rent for next 3 to 4 years...and boum you have an extra 100 millions in the accounts

 

[JamesEFC]

Our attraction to a sponsor is increased a lot by someone with the social media following of James. It makes sense to wait then get a better deal.

Exactly, and it was quite nice to get in early and buy a shirt without the monstrosity of something like angry birds on the sleeve.

 

[ForeverBlue92]

Got to remember if FFP can wipe off the effects of Covid on the books then essentailly we have that £30 million USM deal + the additional £6 million FF deal increase burning a hole in our pockets.

I wouldnt be suprised if thats what we are currently using to fund these current deals.

You also can imagine if USM were to start paying the BMD naming rights once PP is granted then over this and next year we'll have 2x payments from them on the books.

Assuming Usmanov pays us say £20-25 million per year for naming rights that would be £40-50 million additional income over the 2 years on the books.

 

[trueblue84]

Our attraction to a sponsor is increased a lot by someone with the social media following of James. It makes sense to wait then get a better deal.

The way our fans have been with his transfer, I think this would generate the most revenue...

 

[bluesb1970]

Got to remember if FFP can wipe off the effects of Covid on the books then essentailly we have that £30 million USM deal + the additional £6 million FF deal increase burning a hole in our pockets.

I wouldnt be suprised if thats what we are currently using to fund these current deals.

You also can imagine if USM were to start paying the BMD naming rights once PP is granted then over this and next year we'll have 2x payments from them on the books.

Assuming Usmanov pays us say £20-25 million per year for naming rights that would be £40-50 million additional income over the 2 years on the books.

We’ve taken out a loan to pay for transfers haven’t we?

 

[ForeverBlue92]

We’ve taken out a loan to pay for transfers haven’t we?

Not as far as im aware sir.

Essentially a remortage of a remortgage for running costs etc.

Money isnt a problem for us its FFP - If FFP write off the effects of Covid on the books then we have wiggle room to spend based on what I mentioned in my post above imo.

 

[TheNinja]

Our attraction to a sponsor is increased a lot by someone with the social media following of James. It makes sense to wait then get a better deal.

I've heard Flappy Bird have been in touch but we're holding out for an approach from Fruit Ninja...

 

[Zatara]

My reading of it is that its rolling 3 years. So as you add the current year, you knock one off.

so current would be 19/20, 18/19, 17/18.

with the thing they’ve done they’ve extended the current period by 12 months.

so the periods would be 19/20 & 20/21, 18/19, 17/18.

17/18 was a bad one for transfer spend but you are right in thinking that all our contracts roll off by the end of the current, extended period. Provided that we sell the players and bring the loss down by the summer 2021, we’d be looking very good going forward.

we’d have got the wage bill down, reduced the losses and have 17/18 dropping from the rolling period.

You’d think any sales would also make a decent profit in the current period as book value would be reduced so much already (we’ve already taken the majority of the amortised cost hit). Also means market values have time to inflate again.

You could probably estimate how much we need to make back in sales based on our current deficit, player book values and the players to be sold.

what I don’t know is if 19/20 & 20/21, will always be counted as a single period. If not, we’d lose both 17/18 & 18/19 once 21/2 is added (which again is great for our spending).

It’s why we’ve been able to spend. Ideally, we put ourselves in a position to be self sustainable. But, provided Moshiri *wants* to spend and isn’t bothered by the fact that’s he’s already wasted money, we have scope to spend AND remain compliant.

@Zatara

I think the 3 year cycle would then be 2021 summer where we have a bunch of players out of contract. Also the year 2022 the remainder of our 'unwanted' players contracts will expire.

Im wondering though whether its 3 years then start from scratch or whether it goes to year 2, year 3, year 4 and continues each year.

If it is the end of the 3 year FFP cycle then were really laughing. If however it is year on year then were still stuffed as i think last year was a big spend for us as well.

 

[mill]

I think the 3 year cycle would then be 2021 summer where we have a bunch of players out of contract. Also the year 2022 the remainder of our 'unwanted' players contracts will expire.

Im wondering though whether its 3 years then start from scratch or whether it goes to year 2, year 3, year 4 and continues each year.

If it is the end of the 3 year FFP cycle then were really laughing. If however it is year on year then were still stuffed as i think last year was a big spend for us as well.

No it’s rolling I think. Not discrete 3 year periods. Or at least that’s my interpretation.

 

[Zatara]

No it’s rolling I think. Not discrete 3 year periods. Or at least that’s my interpretation.

In that case we need to adjust next year or the year after.

 

[degsy]

Given City drove a herd of Camels through the FFP eye of the needle and the covid FFP truce
I reckon Moshiri is going balls out with transfers now in the hope that it will be extended for a bit and we can get out act together

 

[buskwhi2]

With the transfer market currently the way it is there are some bargains to be found - youd never be buying Allan for just over £20m a year ago.

Strike whilst the irons hot I say and get some top players in whilst we can.