Blackburn report £36.5m loss

[Creaky]

Strikes me that the accountants have been busy making sure that all the losses relating to compensation payments etc have been put on the books all in one go and covered them with a further loan to the club of £30 million which added to the previous years profit virtually covers the loss during 2011/12.

FFP regulations are not imposed on clubs relegated to the Championship during their first year so these reported losses will not cause any FFP sanctions.

 

[portslade seagull]

That will make our cutbacks look like walk in the park.

 

[Willy Dangle]

You know those that break the FFP rules will see no sanctions if promoted to the Prem. Some will take that risk.

 

[seagullsovergrimsby]

Blackburn don't give a stuff about losing that amount of money because they'll get away with doing a "Palace" when the 10 points deduction is meaningless as they avoid relegation.

 

[Guinness Boy]

Blackburn don't give a stuff about losing that amount of money because they'll get away with doing a "Palace" when the 10 points deduction is meaningless as they avoid relegation.

I think you're crediting Venky's with too much intelligence. They're a (chicken in a) basket case sadly.

 

[El Presidente]

FFP or no FFP, no club can sustain losing that amount of money, Blackburn are going to be joining Portsmouth in league 2 before long.

Chelsea and Citeh can

 

[Sloe Joe]

Good luck Blackburn - you'll need it !
Best wishes
Tony Bloom and Paul Barber

 

[Mental Lental]

You know those that break the FFP rules will see no sanctions if promoted to the Prem. Some will take that risk.

Wrong.

 

[porkypie]

You know those that break the FFP rules will see no sanctions if promoted to the Prem. Some will take that risk.

They get fined, and he money the that they are fined get's spread among the clubs in the championship. That managed to stay within the ffp rules!

 

[One4the.road]

Sanction fines will only be about 10k clubs won't comply and will gladly pay .... The only way it could work is if they do points deductions but this will never happen .

 

[Ernest]

The punishments need to fit the crime otherwise FFP is a waste of time, not only in the Championship but the UEFA version too

 

[BigGully]

I am not too sure with all this condemnation and current smugness in respect of Blackburn.

I am sure the FFP is for all things good etc, but personally if someone wishes to use part of or all of their wealth to fund a footy team then please go ahead, more fool you.

Of course administration can be a problem, but shouldn't this be already covered by current financial law.

Ultimately depending where your starting point is will dictate your likely future success or failure, so for many of those that adhere to the FFP they may not go into administration but they will tumble down the leagues and become bed fellows of Portsmouth anyhow, ironic really.

 

[dragonred]

until they set a non negotiable rule that a breach (innocent or deliberate) of FFP rules means promotion will not be ratified in that year, clubs and owners (the majority) will always view financial penalties, however large, as a very small price to pay for getting to the Premiership and getting hands on the money that comes from that. Even transfer bans are not much cop, 1 season in the premiership losing every game can still pay off most debts and leave a club very well placed (unfairly I believe) to then go for promotion again the following year with substantial funds to try and achieve that goal. The current rules simply don't reward financial prudence like Bloom/Barber are aiming for and only slap on the wrist those that flout them. The only way clubs will ever take FFP seriously is if the main reason for breaking the rules (promotion) is removed as a possible outcome for them. This will never happen of course, the lawyers would be all over it as the league doesn't have the balls to risk having to make a massive pay out if a club denied promotion ever sued them!

 

[kevo]

until they set a non negotiable rule that a breach (innocent or deliberate) of FFP rules means promotion will not be ratified in that year, clubs and owners (the majority) will always view financial penalties, however large, as a very small price to pay for getting to the Premiership and getting hands on the money that comes from that. Even transfer bans are not much cop, 1 season in the premiership losing every game can still pay off most debts and leave a club very well placed (unfairly I believe) to then go for promotion again the following year with substantial funds to try and achieve that goal. The current rules simply don't reward financial prudence like Bloom/Barber are aiming for and only slap on the wrist those that flout them. The only way clubs will ever take FFP seriously is if the main reason for breaking the rules (promotion) is removed as a possible outcome for them. This will never happen of course, the lawyers would be all over it as the league doesn't have the balls to risk having to make a massive pay out if a club denied promotion ever sued them!

Very true (although I do wonder if the sanctions will be increased if clubs are found to be continually and obviously flouting the rules). You could question Barber and Bloom's commitment to FFP in view of this - but at least if we are being financially prudent we won't end up in a situation like Portsmouth (or Blackburn).

 

[spring hall convert]

Chelsea and Citeh can

Fair play, not at Championship level though. Venky's must get cold feet soon. I'm surprised they haven't already.

 

[Tom Bombadil]

Chelsea and Citeh can

Not sure there's as much money in chickens as there is in oil though.

 

[nwgull]

Very true (although I do wonder if the sanctions will be increased if clubs are found to be continually and obviously flouting the rules). You could question Barber and Bloom's commitment to FFP in view of this - but at least if we are being financially prudent we won't end up in a situation like Portsmouth (or Blackburn).

FFP or not, it'd be harsh to question Bloom's commitment not to have to fund our debts to the tune of 8m of his own cash every year.

 

[nwgull]

until they set a non negotiable rule that a breach (innocent or deliberate) of FFP rules means promotion will not be ratified in that year, clubs and owners (the majority) will always view financial penalties, however large, as a very small price to pay for getting to the Premiership and getting hands on the money that comes from that. Even transfer bans are not much cop, 1 season in the premiership losing every game can still pay off most debts and leave a club very well placed (unfairly I believe) to then go for promotion again the following year with substantial funds to try and achieve that goal. The current rules simply don't reward financial prudence like Bloom/Barber are aiming for and only slap on the wrist those that flout them. The only way clubs will ever take FFP seriously is if the main reason for breaking the rules (promotion) is removed as a possible outcome for them. This will never happen of course, the lawyers would be all over it as the league doesn't have the balls to risk having to make a massive pay out if a club denied promotion ever sued them!

Impossible to implement; they'll have already been promoted and played half a season in the Premier League by the time the accounts are submitted and scrutinised.

 

[drew]

Sanction fines will only be about 10k clubs won't comply and will gladly pay .... The only way it could work is if they do points deductions but this will never happen .

Fines will be the equivalent of the breach. That is, if you are £10m over the £8m allowance, ie you make a loss of £18m then your fine is £10m. Still small fry compared to the riches available in the Prem.

Ideally you would ban promotion if you are in breach but you would need the Premier League to agree to that which I would think unlikely. The big clubs probably want to steer clear of FFP as much as they can and the rest of the Prem League would fight it because it could affect them if they get relegated!!!

 

[Herr Tubthumper]

Impossible to implement; they'll have already been promoted and played half a season in the Premier League by the time the accounts are submitted and scrutinised.

I am not sure how the transfer embargo will work but they can still be fined.