Transfer embargo on FFP

[drew]

I have read about the sanctions for non compliance and whilst it isnt a fine it is a tax but in effect it is the same thing under a different name with the same nill affect on wealthy owners.

What on earth makes you think it is a tax!!!!! It is a transfer embargo, ie they can't sign new players.

As for Forest, they may take a gamble during this close season and tie people down on big contracts and spend a lot of money in a do or die attempt to get out of the division in May 2015 but then that is it. If they fail, as it stands at the moment, it appears they will have a transfer embargo imposed with effect from 1st Jan 2015 so from that date until they can show they are complying, they cannot sign new players or extend the contracts of old players. Bearing in mind how hard it will be to restructure the finance from making massive losses as defined by FFP to a level where you are complying, if it takes two or three years to get the accounts under control, then by the end of that time they are likely to be fielding their youth team and what division do you think they might be in then which is why it is a massive gamble on the future of the club!!!!

 

[brightonrock]

yet again some post rubbish.

Welcome to NSC

 

[PILTDOWN MAN]

I have read about the sanctions for non compliance and whilst it isnt a fine it is a tax but in effect it is the same thing under a different name with the same nill affect on wealthy owners.

I don't know what you read but it wasn't anything about FFP.

The Championship

Financial Fair Play in the Championship will see the introduction of a breakeven model based on UEFA Financial Fair Play Regulations. It will require clubs to stay within pre-defined limits on losses and shareholder equity investment that will reduce significantly over the next five seasons.

The new system will require clubs to provide annual accounts to The Football League by December 1 every year, covering the previous season/financial year. Using this information a 'Fair Play Result' will be determined for each club that will equate to the club's profit/loss for the year, excluding investment in specific areas of club infrastructure or losses in certain extraordinary circumstances.

In order to comply with the Financial Fair Play regulations each club is required to demonstrate a Fair Play Result that is either:

a) nil or greater.

or:

b) A loss of less than the permitted level of acceptable deviation and shareholder equity investment for the season in question.

The permitted level of acceptable deviation and shareholder equity investment will reduce over time from £4m and £8m respectively in 2011/12 to £2m and £3m by 2015/16.

The Football League will establish a Financial Fair Play Panel, led by its Chairman, to consider any challenges by clubs to the determination of the Fair Play Result.

What counts towards the Fair Play Result?

The Fair Play Result is based on the club's profit or loss before tax with the exception of:

• Investment in Youth Development (as defined in the Elite Player Performance Plan)
• The profit affecting element of the purchase, sale and depreciation of fixed assets excluding players (e.g. a club's stadium)
• Investment in a club's Community Scheme
• Promotion related bonus payments

A club is also entitled to apply to the Financial Fair Play Panel to have certain exceptional items excluded from the Financial Fair Play Result in a particular year. Such as (but not limited to):

• Career ending injury costs
• Bad debts from other clubs
• Losses sustained from a major sponsor defaulting

The timetable for implementation

As with UEFA's Financial Fair Play regulations, The Football League will phase in its Financial Fair Play framework for Championship clubs. This is outlined below.

Season 2011/12 2012/13 2013/14 2014/15 2015/16 onwards
Acceptable deviation £4 m £4 m £3 m £3 m £2 m
Shareholder equity investment £8 m £6 m £5 m £3 m £3 m
Total Permitted Allowances £12 m £10 m £8 m £6 m £5 m

The first reporting period will be the current season (2011/12) - with the first set of accounts due to be submitted on 1st December 2012.

Sanctions

Failure to stay within the defined limits will lead to the imposition of sanctions. However, there will be no sanctions implemented during the first two seasons (2012/13 and 2013/14) in order to give clubs a sensible period of transition.

From the 2014/15 season, sanctions will be introduced that will differ depending on whether the club ultimately remained in the Championship, was promoted to the Premier League or was relegated to League 1.

i. Sanctions for clubs remaining in the Championship

Clubs that fail to comply with the Financial Fair Play regulations (from December 1st 2014) will be subject to a transfer embargo. This embargo will come in to force ahead of the subsequent transfer window beginning on January 1, 2015.

The embargo will remain in place until the club is able to lodge financial information that demonstrates that it meets the Financial Fair Play regulations (either for the previous reporting period or a future reporting period).

ii. Sanctions for clubs promoted to the Premier League

Clubs promoted to the Premier League will be required to provide Financial Fair Play information for their promotion season by December 1. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.

The Fair Play Tax will be applied at the following thresholds:

(a) 1% of the excess between £1 and £100,000;
(b) 20% of the excess between £100,001 and £500,000;
(c) 40% of the excess between £500,001 and £1,000,000;
(d) 60% of the excess between £1,000,001 and £5,000,000;
(e) 80% of the excess between £5,000,001 and £10,000,000; and
(f) 100% of the excess over £10,000,000
Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question.

The Football League is currently in the process of consulting with the Premier League regarding the implementation of these Financial Fair Play regulations.

iii. Sanctions for clubs relegated to League 1

Clubs relegated to League 1 will not be entitled to any payout derived from the Fair Play Tax and will be required to comply with the FFP rules in operation in that division.

Transition arrangements for clubs relegated from the Premier League

Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations.

 

[seagullsovergrimsby]

There is going to be a Football League EGM in 10 days time , what currently applies as the FFP framework will be thrown out of the window and a new set of guidelines will come into effect. Watch This Space.

 

[Creaky]

I don't know what you read but it wasn't anything about FFP.

The Championship

Financial Fair Play in the Championship will see the introduction of a breakeven model based on UEFA Financial Fair Play Regulations. It will require clubs to stay within pre-defined limits on losses and shareholder equity investment that will reduce significantly over the next five seasons.

The new system will require clubs to provide annual accounts to The Football League by December 1 every year, covering the previous season/financial year. Using this information a 'Fair Play Result' will be determined for each club that will equate to the club's profit/loss for the year, excluding investment in specific areas of club infrastructure or losses in certain extraordinary circumstances.

In order to comply with the Financial Fair Play regulations each club is required to demonstrate a Fair Play Result that is either:

a) nil or greater.

or:

b) A loss of less than the permitted level of acceptable deviation and shareholder equity investment for the season in question.

The permitted level of acceptable deviation and shareholder equity investment will reduce over time from £4m and £8m respectively in 2011/12 to £2m and £3m by 2015/16.

The Football League will establish a Financial Fair Play Panel, led by its Chairman, to consider any challenges by clubs to the determination of the Fair Play Result.

What counts towards the Fair Play Result?

The Fair Play Result is based on the club's profit or loss before tax with the exception of:

• Investment in Youth Development (as defined in the Elite Player Performance Plan)
• The profit affecting element of the purchase, sale and depreciation of fixed assets excluding players (e.g. a club's stadium)
• Investment in a club's Community Scheme
• Promotion related bonus payments

A club is also entitled to apply to the Financial Fair Play Panel to have certain exceptional items excluded from the Financial Fair Play Result in a particular year. Such as (but not limited to):

• Career ending injury costs
• Bad debts from other clubs
• Losses sustained from a major sponsor defaulting

The timetable for implementation

As with UEFA's Financial Fair Play regulations, The Football League will phase in its Financial Fair Play framework for Championship clubs. This is outlined below.

Season 2011/12 2012/13 2013/14 2014/15 2015/16 onwards
Acceptable deviation £4 m £4 m £3 m £3 m £2 m
Shareholder equity investment £8 m £6 m £5 m £3 m £3 m
Total Permitted Allowances £12 m £10 m £8 m £6 m £5 m

The first reporting period will be the current season (2011/12) - with the first set of accounts due to be submitted on 1st December 2012.

Sanctions

Failure to stay within the defined limits will lead to the imposition of sanctions. However, there will be no sanctions implemented during the first two seasons (2012/13 and 2013/14) in order to give clubs a sensible period of transition.

From the 2014/15 season, sanctions will be introduced that will differ depending on whether the club ultimately remained in the Championship, was promoted to the Premier League or was relegated to League 1.

i. Sanctions for clubs remaining in the Championship

Clubs that fail to comply with the Financial Fair Play regulations (from December 1st 2014) will be subject to a transfer embargo. This embargo will come in to force ahead of the subsequent transfer window beginning on January 1, 2015.

The embargo will remain in place until the club is able to lodge financial information that demonstrates that it meets the Financial Fair Play regulations (either for the previous reporting period or a future reporting period).

ii. Sanctions for clubs promoted to the Premier League

Clubs promoted to the Premier League will be required to provide Financial Fair Play information for their promotion season by December 1. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.

The Fair Play Tax will be applied at the following thresholds:

(a) 1% of the excess between £1 and £100,000;
(b) 20% of the excess between £100,001 and £500,000;
(c) 40% of the excess between £500,001 and £1,000,000;
(d) 60% of the excess between £1,000,001 and £5,000,000;
(e) 80% of the excess between £5,000,001 and £10,000,000; and
(f) 100% of the excess over £10,000,000
Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question.

The Football League is currently in the process of consulting with the Premier League regarding the implementation of these Financial Fair Play regulations.

iii. Sanctions for clubs relegated to League 1

Clubs relegated to League 1 will not be entitled to any payout derived from the Fair Play Tax and will be required to comply with the FFP rules in operation in that division.

Transition arrangements for clubs relegated from the Premier League

Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations.

That's an out of date summary - "Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question."

 

[drew]

That's an out of date summary - "Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question."

Not necessarily, it does say they are in negotiations with the PL regarding implementation, which, effectively means how they are going to fine promoted clubs and where teh money goes although I agree with what I believe you are implying in that it isn't going to be spread out amongst those that have complied.

 

[PILTDOWN MAN]

That's an out of date summary - "Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question."

Yes I know but the point I was raising again with sooooooooooooooo many on here was the embargo as opposed to the fine.

Thanks to the Premiership the proceeds of a fine would now go to a quango sorry charity

 

[seagullsovergrimsby]

That's an out of date summary - "Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question."

IIRC the goalposts were moved last November because the Premier League didn't want any of the "Fair Play Tax" going to compliant clubs in The Championship as the newly promoted clubs came under their jurisdiction and not the Football League. The compromise was for any monies to go to charity instead. I think Paul Barber confirmed this in one of his video messages.

 

[PILTDOWN MAN]

IIRC the goalposts were moved last November because the Premier League didn't want any of the "Fair Play Tax" going to compliant clubs in The Championship as the newly promoted clubs came under their jurisdiction and not the Football League. The compromise was for any monies to go to charity instead. I think Paul Barber confirmed this in one of his video messages.

Indeed it was. Also the embargo will be much stricter than the one imposed on Watford. There is no ingoing transfers allowed even loans. This was mentioned on the league site but I haven't been able to find it again, it's there somewhere!!

 

[seagullsovergrimsby]

Indeed it was. Also the embargo will be much stricter than the one imposed on Watford. There is no ingoing transfers allowed even loans. This was mentioned on the league site but I haven't been able to find it again, it's there somewhere!!

Its not worth trying to find , they will be revising it all in a couple of weeks

 

[BensGrandad]

ii. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.

The Fair Play Tax will be applied at the following thresholds:

(a) 1% of the excess between £1 and £100,000;
(b) 20% of the excess between £100,001 and £500,000;
(c) 40% of the excess between £500,001 and £1,000,000;
(d) 60% of the excess between £1,000,001 and £5,000,000;
(e) 80% of the excess between £5,000,001 and £10,000,000; and
(f) 100% of the excess over £10,000,000
Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question.

The Football League is currently in the process of consulting with the Premier League regarding the implementation of these Financial Fair Play regulations.

iii. Sanctions for clubs relegated to League 1

Clubs relegated to League 1 will not be entitled to any payout derived from the Fair Play Tax and will be required to comply with the FFP rules in operation in that division.

Transition arrangements for clubs relegated from the Premier League

Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations.[/QUOTE]

What is this if it is not a tax to be applied or in effect a fine for non compliance.

 

[seagullsovergrimsby]

What is this if it is not a tax to be applied or in effect a fine for non compliance.

Its a donation to charity , as far as I know.

 

[drew]

ii. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.

The Fair Play Tax will be applied at the following thresholds:

(a) 1% of the excess between £1 and £100,000;
(b) 20% of the excess between £100,001 and £500,000;
(c) 40% of the excess between £500,001 and £1,000,000;
(d) 60% of the excess between £1,000,001 and £5,000,000;
(e) 80% of the excess between £5,000,001 and £10,000,000; and
(f) 100% of the excess over £10,000,000
Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question.

The Football League is currently in the process of consulting with the Premier League regarding the implementation of these Financial Fair Play regulations.

iii. Sanctions for clubs relegated to League 1

Clubs relegated to League 1 will not be entitled to any payout derived from the Fair Play Tax and will be required to comply with the FFP rules in operation in that division.

Transition arrangements for clubs relegated from the Premier League

Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations.

What is this if it is not a tax to be applied or in effect a fine for non compliance.[/QUOTE]

Because we are, or were, talking about Forest and they haven't been promoted. The fines/tax applies to clubs that are promoted!!! Below is an extract with the relevant parts in bold red to make it easier for you.


i. Sanctions for clubs remaining in the Championship

Clubs that fail to comply with the Financial Fair Play regulations (from December 1st 2014) will be subject to a transfer embargo. This embargo will come in to force ahead of the subsequent transfer window beginning on January 1, 2015.

The embargo will remain in place until the club is able to lodge financial information that demonstrates that it meets the Financial Fair Play regulations (either for the previous reporting period or a future reporting period).

ii. Sanctions for clubs promoted to the Premier League

Clubs promoted to the Premier League will be required to provide Financial Fair Play information for their promotion season by December 1. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.

The Fair Play Tax will be applied at the following thresholds:

(a) 1% of the excess between £1 and £100,000;
(b) 20% of the excess between £100,001 and £500,000;
(c) 40% of the excess between £500,001 and £1,000,000;
(d) 60% of the excess between £1,000,001 and £5,000,000;
(e) 80% of the excess between £5,000,001 and £10,000,000; and
(f) 100% of the excess over £10,000,000
Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question.