Good article here on PSG and FFP if anyone is interested: http://www.forbes.com/sites/bobbymc...ains-financial-statements-qualify-as-fiction/
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FFP
- Thread starter The Wookiee
- Start date
That article alleges that PSG are going for a loophole that allows them to count a dubious $160m as revenue. Dubious in two ways: 1) the source of the income may well be judged by UEFA to be a "related party" to PSG, thus disqualifying the income for FFP purposes. 2) The income came c 6 months AFTER the year end date! If what is alleged is true and if UEFA let PSG get away with it, then FFP doesn't have loopholes; it has massive blackholes that defy basic accounting standards (such as matching revenue and costs in the same accounting period). Time will tell.
Will be interesting to see how it develops. As the article suggests, they'll either be made an example of, or they'll prove FFP is absolutely meaningless.
kevtherev
Well-known member
I suppose this is where having a top man running the club on a day to day basis, is just as important as having a 20 goal a season striker.
bernster
New member
http://www.bbc.co.uk/sport/0/football/22426733
a legal challenge has already gone in to the euro commission
a legal challenge has already gone in to the euro commission
BensGrandad
New member
I would think that the easiest way to circumvent the FFP would be for the chairman or one of his companies to sponsor the DS or reserve team kit but I am sure that most chairmen will realize this. .
As pointed out within four posts of the thread starting, all deals have to be shown to be 'commercially realistic' or the income will be disbarred and fines imposed. You can't just sponsor your DS for £5m per season, as such a deal is clearly not the genuine commercial value.
Would probably fall foul of the related party transaction exclusion clauses though. If someone closely related to the club pays over the odds for any service provided by the club, FFP in theory says "OK, what would the cost of an arms-length transaction be for that service?" This is designed to prevent seats being sold for £5k and also, presumably, the reserve kit and DS squad kits being sponsored, except for very low amounts that refdlect the market value.
The key part of what I've said though was "in theory". There will be many stunts pulled by many clubs testing the boundaries in the first couple of seasons. Rightly or wrongly, as I said before, I doubt we'll be one of those clubs testing the boundaries. I think we'll play it straight - abiding by the spirit of FFP as well as the (probably) ambiguous letter.
BensGrandad
New member
I am sure that most chairmen wouldnt be silly enough to offer stupid amounts so as to make it obviously a ploy. 8 different companies owned by directors could easily sponsor various aspects of the club for £1m thus our losses would be virtually nil as shown in the past couple of seasons. Not sure how much our club sponsorship with Amex is worth per season.
The stadium is sponsored (and the terms of that deal probably prevent sponsorship of individual stands). The shirts are sponsored. All the 1901 lounges are sponsored. The family area is sponsored. Gully's Girls are sponsored. Albion in the Community is sponsored.
Which eight presently sponsor-free areas of the club's activities do you suggest are likely to be seen to have a commercial sponsorship value of ONE MILLION pounds?
Southover Street Seagull
Well-known member
That sounds like a combination of the Championship and League 1/2 rules. This site is very good:
http://www.financialfairplay.co.uk/financial-fair-play-explained.php
BensGrandad
New member
How many players and football management staff do we have on our books? Program Advertising. match ball sponsorship which is a minimal amount at the moment and the same could be said of match sponsorship. If a company suddenly offered £200k per game that would be well in excess of what the existing sponsors pay. The new boxes at a very high rate which would price it out of the normal supporters or company but would solve the problem.
Last edited:
- Jul 7, 2003
- 47,222
Yes but as has already been said. That would not be a realistic commercial value for the deal.
BensGrandad
New member
If you or I offered £200k to sponsor a game do you think thet would turn it down and say it is too much? If I won the Euro lottery I would sponsor a game for £5m would they say no thanks?
But this is the UEFA FFP which doesn't affect us. A very different animal to the FL FFP; the key difference being the FL clubs voted their FFP in themselves.
That would be fine, since you're not a related party to the club. All Directors and any companies they control, their families and, arguably, their friends are, by definition, related parties. Though why anyone who wasn't directly related to the club would offer to pay way over the odds for something is beyond me. A lottery winner might conceivably make such a deal, I guess.
Probably not. But if you were the chairman doing this it would raise suspicion and almost certainly be classed as wrong doing.
Rookie
Greetings
- Feb 8, 2005
- 12,074
Boo to you! Was about to write pretty much the same
BensGrandad
New member
Just a thought as we have now formed a liaison with SUSSEX County Cricket Club, in theory could the club or one of its directors donate £10m to the cricket club and a week later the cricket club donate £10m to us to circumvent this rule.
Not really? The wage to revenue metric is only for clubs in the bottom two divisions. In the Championship there is a cap on the maximum losses and owner's equity investments each season.