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Is the FFP system justified?



Herr Tubthumper

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Jul 11, 2003
59,735
The Fatherland
My understanding is that the Bosman lawyer is working on behalf of an individual player, and has nothing to do with FFP.

Apologies. I thought you were suggesting the Bosman lawyer is legally challenging FFP. Out of interest, what is the case you are referring to?
 




El Presidente

The ONLY Gay in Brighton
Helpful Moderator
Jul 5, 2003
39,716
Pattknull med Haksprut
Apologies from me too. DuPont (the lawyer) is acting on behalf of an agent, who is unhappy about potential loss of income in relation to FFP, in which he has lodged a formal complaint with the European Commission.

I understand he also has a client who has had a transfer request declined, and is threatening the club with legal action unless the club reverses the decision. That is an ongoing action but has not gone to court yet.
 


Seagull on the wing

New member
Sep 22, 2010
7,458
Hailsham
Why not ???

So because a majority of league members at a point in time voted in favour of a rule this cannot be challenged at some time in the future? It's also difficult to see why many clubs pay lip service to the system they "support" whilst at the same time trying to find ways of circumventing the rules and/or ignoring them.

I just find it interesting that such a system seems to have been publicly accepted as a "good thing" by all sectors, (apart from a number of agents who are making a legal challenge), owners, players and fans, without questioning the justification for it.

In a way...correct,I think you'll find because of FFP agents fees are being cut....which will be only good for football.
 


Triggaaar

Well-known member
Oct 24, 2005
50,219
Goldstone
Performing artists have contracts to deliver a product, usually X albums, which must be deemed to be of a commercial quality.
In the same way a footballer could have a contract to play football, for X games/years.

Does the music industry, or any other for that matter, have a system whereby employees contracts are routinely transferred from one company to another for a negotiated fee? - I can't think of any.
The point is simply whether someone has the right to go and work for whom they want. George Michael wanted to go and record music away from Sony, so he sued them, and lost. He could have reached an agreement with Sony to cancel the contract, and sign for another label, in the same way a player goes from one club to another. How routine that is isn't the point, either a contract that limits who you work for is enforceable, or it's not. In the past, a court has decided such contracts are enforceable.
 
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Triggaaar

Well-known member
Oct 24, 2005
50,219
Goldstone
But they don't. They are employees surely?
There's always a number of years on the contract isn't there. They are not just employees, that can be dismissed without paying off the contract.
 


Creaky

Well-known member
Mar 26, 2013
3,843
Hookwood - Nr Horley
In the same way a footballer could have a contract to play football, for X games/years.

The point is simply whether someone has the right to go and work for whom they want. George Michael wanted to go and record music away from Sony, so he sued them, and lost. He could have reached an agreement with Sony to cancel the contract, and sign for another label, in the same way a player goes from one club to another. How routine that is isn't the point, either a contract that limits who you work for is enforceable, or it's not. In the past, a court has decided such contracts are enforceable.

I don't know the details of George Michael's contract but can only surmise that there wasn't a cancellation clause included detailing the cost of non-performance - which is surprising.

"Fair" contracts detail the penalties to be paid by each party for non-performance.
 


nwgull

Well-known member
Jul 25, 2003
13,839
Manchester
What about the music industry, where artists sign a contract for a record label - should they be able to just leave and work somewhere else? What about when someone works for one company, and signs an agreement that they won't work for a competitor for a certain length of time - should none of these agreements mean anything?

Going a bit off topic now, but I'm fairly sure that any agreement an employee may sign to not work for a competitor for a certain time is not enforceable and superseded by statutory employment rights. So effectively means nothing.
 




Creaky

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Mar 26, 2013
3,843
Hookwood - Nr Horley
Going a bit off topic now, but I'm fairly sure that any agreement an employee may sign to not work for a competitor for a certain time is not enforceable and superseded by statutory employment rights. So effectively means nothing.

This - such clauses have been successfully challenged as a "restraint of trade" on a number of occasions.
 


Surf's Up

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Jul 17, 2011
10,197
Here
As tub thumper has suggested: you'd hope that these players fair market value will be assessed when it comes down to the nitty gritty of clubs submitting their accounts for 13/14 in December next year.

Ok, so it depends on the market value of the players which should be determined by what a club is prepared to pay for them which in Watford's case, was a nominal fee! Or, in the alternative, Watford's December 13/14 accounts are successfully challenged and they receive a hefty fine by which point they are in the PL and couldn't give a flying f**k!
 


Herr Tubthumper

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Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
59,735
The Fatherland
This - such clauses have been successfully challenged as a "restraint of trade" on a number of occasions.

In specific situations yes. But exclusivity deals are signed every working day and most are totally ligitimate....I imagine there must be some arrangement in a footballers contract to stop him playing for multiple teams? Is this a restraint of trade?
 


father_and_son

Well-known member
Jan 23, 2012
4,646
Under the Police Box
Ok, so it depends on the market value of the players which should be determined by what a club is prepared to pay for them which in Watford's case, was a nominal fee! Or, in the alternative, Watford's December 13/14 accounts are successfully challenged and they receive a hefty fine by which point they are in the PL and couldn't give a flying f**k!

The potential fine for over-spending is equal to the overspend. So blowing the budget to the tune of, say, £10 million will cost you £20 million (the original spend + plus an equal fine). There will be a business decision made at a number of clubs over whether the fine is worth paying. However, as there is no direct correlation between the money spent and the future reward (buying players doesn't guarantee promotion), the down side of the "f*ck it, we're in the prem" is that the club might not actually get promoted, then you are seriously f*cked as a club! And the owner has potentially sp*nked a lot more money away than originally gambled.
 


KZNSeagull

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Nov 26, 2007
19,875
Wolsingham, County Durham
The potential fine for over-spending is equal to the overspend. So blowing the budget to the tune of, say, £10 million will cost you £20 million (the original spend + plus an equal fine). There will be a business decision made at a number of clubs over whether the fine is worth paying. However, as there is no direct correlation between the money spent and the future reward (buying players doesn't guarantee promotion), the down side of the "f*ck it, we're in the prem" is that the club might not actually get promoted, then you are seriously f*cked as a club! And the owner has potentially sp*nked a lot more money away than originally gambled.

It's not quite all the overspend, but a significant proportion of it. QPR made an operating loss of 25.7m when they were last promoted to the Premier League. Under FFP rules, a similar loss would result in a fine of +- 18m, assuming they are promoted. I would hope that this makes a few clubs think twice about what they are doing.
 




Herr Tubthumper

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Jul 11, 2003
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The Fatherland
The potential fine for over-spending is equal to the overspend. So blowing the budget to the tune of, say, £10 million will cost you £20 million (the original spend + plus an equal fine). There will be a business decision made at a number of clubs over whether the fine is worth paying. However, as there is no direct correlation between the money spent and the future reward (buying players doesn't guarantee promotion), the down side of the "f*ck it, we're in the prem" is that the club might not actually get promoted, then you are seriously f*cked as a club! And the owner has potentially sp*nked a lot more money away than originally gambled.

Agree. The fines do seem prohibitive. Also, as I understand it, if you consistently knowingly flaunt the rules it could ultimately lead to a vote to kick you out of the league. It's one heck of a gamble.
 


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