[Football] Chelsea avoid failing FFP via loop hole

[SAC]

If there is/was a loophole then clubs are going to use it, just like lot's off companies (and individuals) use loopholes to avoid paying tax.

No, it's not right and yes, someone should have seen it coming. However if the loophole is there, we can't be surprised that Chelsea have exploited it. My hope is that Chelsea failed to get PL approval of the sale (within the time limit) and that it can't be used for PSR.

 

[BRIGHT ON Q]

How many hotels do Man City own?

115

 

[Pavilionaire]

This grubby story makes me ashamed to be an accountant.

 

[jonny.rainbow]

If they do nothing then the Premier League are creating a problem for themselves that will never go away, i.e. one rule for the Big Six and one rule for everybody else.

To all intents and purposes, the Big Six ARE the Premier League brand - take those away and where would they be? It's like taking away Johnnie Walker, Smirnoff, Captain Morgan, Tanqueray, J&B and Guinness from Diageo.

People talk about US professional sport having no promotion or relegation, yet the Premier League have - in effect - created that within their league without people noticing because they are distracted by the hype. It's only now that the Emperor's New Clothes are starting to drop.

If Chelsea get away with this then all any oligarch or sheikh has to do now to circumvent PSR is place an appreciating asset within a football club's asset listing then sell that asset back to themselves when necessary. And if that asset happens to be a group of hotels then so much the better.

It won't happen but I wouldn't blame the other 14 clubs for dumping the Premier League and forming a new league of 20 with Leeds, Leicester, Southampton , Norwich, Celtic and Rangers. At least that league would be competitive.

Stalybridge Celtic and Stafford Rangers are probably not quite top flight standard.

If you mean the odious Glaswegian clubs - no thanks. They would ruin our league with their sectarian nonsense.

 

[um bongo molongo]

They haven't stopped associated party transactions, but it has to be proven to be fair market value.

This is the problem. The associated party transactions should have been banned, but weren’t.

 

[lhughes]

Another reason to hate this joke of a club.

I'm just gutted that it looks fairly likely they'll finish above us this season

 

[maltaseagull]

How many hotels do Man City own?

115?

 

[Nobby Cybergoat]

If there is/was a loophole then clubs are going to use it, just like lot's off companies (and individuals) use loopholes to avoid paying tax.

No, it's not right and yes, someone should have seen it coming. However if the loophole is there, we can't be surprised that Chelsea have exploited it. My hope is that Chelsea failed to get PL approval of the sale (within the time limit) and that it can't be used for PSR.

This is a loophole in the way that the way that the wound in the side of the titanic could be described one.

If it's as simple as just buying property in the club name in a PSR good year and selling it to another part of the club on a bad PSR year, there is no PSR

 

[nwgull]

Such transactions apparently are not allowed to offset profits under UEFA rules and limits. Also, the amortisation of player transfers has a maximum of 5 years under UEFA rules. Chelsea would be f***ed if they qualified for Europe.

 

[Jim in the West]

Such transactions apparently are not allowed to offset profits under UEFA rules and limits. Also, the amortisation of player transfers has a maximum of 5 years under UEFA rules. Chelsea would be f***ed if they qualified for Europe.

I'd love to know more about this - potentially from a Dullard. Chelsea could easily finish 7th (or, possibly, win the FACup)....what happens in such circumstances? Would they be barred from taking part? And if so, would that mean their European place would go to the team finishing 8th (or, in the case of the FACup, the losing finalist)? And what about next season - it would seem that the same FFP/PSR issues would continue to bite?

 

[nwgull]

I'd love to know more about this - potentially from a Dullard. Chelsea could easily finish 7th (or, possibly, win the FACup)....what happens in such circumstances? Would they be barred from taking part? And if so, would that mean their European place would go to the team finishing 8th (or, in the case of the FACup, the losing finalist)? And what about next season - it would seem that the same FFP/PSR issues would continue to bite?

It's a genuinely interesting question. Do UEFA assess their accounts for the current season, in which they qualify for Europe, or do they only have jurisdication on accounts for seasons in which they compete in Europe? What sanctions can they then impose?

And you're right, even if UEFA don't assess their 23-24 accounts, there is no way that they can meet FFP/PSR for 24-25 given their ongoing huge wage bill and amortisation charge.

 

[Change at Barnham]

115?

They are facing 115 charges of financial irregularities from the Premier League.
A bit of NSC black humour I think.