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Forest will be paid HALF A BILLION POUNDS for renaming their ground



Guinness Boy

Tofu eating wokerati
Helpful Moderator
NSC Patreon
Jul 23, 2003
33,820
Up and Coming Sunny Portslade
What's the point of tradition or FFP. Rest of us might as well pack it in

1forest.JPG
 


Rookie

Greetings
Feb 8, 2005
12,026
But that must fail the fair market price valuation
 




sparkie

Well-known member
Jul 17, 2003
12,466
Hove
But that must fail the fair market price valuation

It will.

Forest can use the 0.5 billion to pay any fine when they go up.

I guess this is split into 50 million a year for 10 years ???
 
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Creaky

Well-known member
Mar 26, 2013
3,835
Hookwood - Nr Horley
Sounds like good business if that figure is correct.

Don't really see how anyone can complain as it's money that goes straight into the club and can't be withdrawn at a later date.
 






shaolinpunk

[Insert witty title here]
Nov 28, 2005
7,187
Brighton
Don't really see how anyone can complain as it's money that goes straight into the club and can't be withdrawn at a later date.

But instead of adhering to financial fair play and having a vaguely level playing field like FFP intends (although there's an argument it does more to help the rich stay rich and the poor stay poor), they'll have £500m available through a convenient inflated deal.

It's a bit like Watford's owners using the other clubs they own to buy players and send them to Watford on a loan/for free to beat FFP
 


Guinness Boy

Tofu eating wokerati
Helpful Moderator
NSC Patreon
Jul 23, 2003
33,820
Up and Coming Sunny Portslade
But instead of adhering to financial fair play and having a vaguely level playing field like FFP intends (although there's an argument it does more to help the rich stay rich and the poor stay poor), they'll have £500m available through a convenient inflated deal.

It's a bit like Watford's owners using the other clubs they own to buy players and send them to Watford on a loan/for free to beat FFP

This
 






Creaky

Well-known member
Mar 26, 2013
3,835
Hookwood - Nr Horley
But instead of adhering to financial fair play and having a vaguely level playing field like FFP intends (although there's an argument it does more to help the rich stay rich and the poor stay poor), they'll have £500m available through a convenient inflated deal.

It's a bit like Watford's owners using the other clubs they own to buy players and send them to Watford on a loan/for free to beat FFP

How can you claim it's an "inflated deal" if it is a government paying for the sponsorship.

There is no market valuation to compare it against.

It does not increase the club's indebtedness and guarantees future income - if TB had done a similar deal with say Saudi Arabia I can't see that there would be many complaints.
 






algie

The moaning of life
Jan 8, 2006
14,713
In rehab
Big season i guess coming up for FFP around Xmas time. I reckon this is just the tip of the iceberg while clubs like Blackburn,Forest,Bolton etc try and find ways to avoid sanctions.
 


mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
Why? If the Kuwaiti government is willing to pay that much for the name then it must be worth it to them - maybe we should be looking for more from Amex.

It would be difficult to argue that if Brighton's stadium is worth £450k a year sponsorship then fair market value for the red dog kennel is £500m!??!
 








KZNSeagull

Well-known member
Nov 26, 2007
19,692
Wolsingham, County Durham
I may be wrong but as I understand it, FFP will not stop them from getting this money, it will just be deemed to be excessive and their FFP accounts will be adjusted accordingly (ie, they will fail to adhere to it). So it will not stop the investment, but they will be sanctioned for it.

Big test for the Football League coming in December.
 


sparkie

Well-known member
Jul 17, 2003
12,466
Hove
The League should be encouraging, via FFP or other methods, deals which inject cash into clubs and that don't increase debt.

I agree fully with this. It is club debt which is the real problem, not income levels.
 


algie

The moaning of life
Jan 8, 2006
14,713
In rehab
The League should be encouraging, via FFP or other methods, deals which inject cash into clubs and that don't increase debt.
Why should it be encouraged to throw money about? Clubs then spend big on enticing the better players to sign for them and paying them huge salaries as an incentive and then it's the ordinary fan who bares the brunt of it with rising season ticket prices and other goods.
 






algie

The moaning of life
Jan 8, 2006
14,713
In rehab
The bubble will burst and some stage lets build a club that won't go bust?


People have been saying the "bubble will burst" since the Premiership was formed. If anything it appears to grow in strength sadly.
 
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