How 'fair' is Financial Fair Play?

[Goldstone1976]

I have always felt irrespective of the existence on FFP Tony would be running the club within his own financial framework.

All FFP has done for the Albion is give Tony a protective shield when others are spending/losing tens of millions per season.

Yep, that's the way I've always seen it too.

Oh and I doubt that TB wants to splurge 39m over 3 years either.

But.... this is my view too. So, there is a logical inconsistency in my position, since TB (yes, I know through PB) voted for the relaxation of the FFP allowable losses. The consequences/implications of him doing so suggest to me either:

A) TB will, next season (which is when the relaxed FFP limits come into effect), continue to limit his losses to, say, £6m under FFP accounting. If so, he'll have to admit that he's not prepared to fund the club to the full extent allowed under the new FFP rules, which would be just fine - it's his money, after all, thus losing his "protective shield". Though, if this is what is going to transpire, one has to wonder why he voted for the relaxation...

OR

B) TB is prepared to go some considerable way towards losing £39m over three years to get his dream.

Given the inconsistency I've highlighted in option A, maybe, just maybe, option B is more likely?

One other, more general, point. The new limits are £39m over three years, not £13m pa. All a club has to do within the three year period is persuade the FL that they will make a loss no greater than £39m over three years. So, technically, that could look like £50m loss in year 1 followed by a credible forecast of an £11m profit over years 2 and 3. Whether any club will take it quite as far as that in their desire to get to the PL, I doubt, but it wouldn't surprise me to see 1 or 2 clubs chalking up a £20m loss in year 1 and claiming that they'll hit the 3 year target loss, with the FL being able to do little about it.

 

[KZNSeagull]

Yep, that's the way I've always seen it too.



But.... this is my view too. So, there is a logical inconsistency in my position, since TB (yes, I know through PB) voted for the relaxation of the FFP allowable losses. The consequences/implications of him doing so suggest to me either:

A) TB will, next season (which is when the relaxed FFP limits come into effect), continue to limit his losses to, say, £6m under FFP accounting. If so, he'll have to admit that he's not prepared to fund the club to the full extent allowed under the new FFP rules, which would be just fine - it's his money, after all, thus losing his "protective shield". Though, if this is what is going to transpire, one has to wonder why he voted for the relaxation...

OR

B) TB is prepared to go some considerable way towards losing £39m over three years to get his dream.

Given the inconsistency I've highlighted in option A, maybe, just maybe, option B is more likely?

One other, more general, point. The new limits are £39m over three years, not £13m pa. All a club has to do within the three year period is persuade the FL that they will make a loss no greater than £39m over three years. So, technically, that could look like £50m loss in year 1 followed by a credible forecast of an £11m profit over years 2 and 3. Whether any club will take it quite as far as that in their desire to get to the PL, I doubt, but it wouldn't surprise me to see 1 or 2 clubs chalking up a £20m loss in year 1 and claiming that they'll hit the 3 year target loss, with the FL being able to do little about it.

Good post.

We will have to see what TB does and some fans reaction if he wants to continue limiting his losses. I suspect he voted reluctantly for the increase as he knew that the disparity with those ex PL clubs and the rest would just get ever wider, which it will do with the new tv deal. I am hoping that parachute payments will be done away with once that kicks in, but I doubt it.

Which ever way you look at it, it is going to be harder than ever to compete. We have to get MUCH wiser in the transfer market, that is for sure, and hope that the academy starts paying off soon. I really cannot believe that TB wants to plough yet more money in, there has to be a limit, but at least with voting in the new rules the option is there from next season should he so desire. But if he does, it may be what he did before - wait for the squad to compete near the top and then splurge a bit more. It's a tricky conundrum - keeping the fans happy on one hand but not taking a very risky gamble on the other. Rather him than me!

 

[El Presidente]

It was this statement in your post,

"Nothing in FFP is 'fair'. It astounds
me that so many people fall for it." The objective is for established large clubs to maintain their advantage over smaller ones

Did Barber feel that we were a big club and we would gain an advantage over smaller ones with FFP, as he really championed FFP in my mind like no others. Because as you stated nothing is fair about FFP. So was he taken in by it all (and Fell for it) or was he just being clever and used it as an excuse not to spend money and in fact raise prices?

Or have I just missed your point completely?

I think you missed the point.

1: We spent more money last season under Oscar on the football side of the club than under Gus the previous season.
2: You accuse Tony Bloom of not spending money, yet he underwrote the £10.6 million loss, which was the second largest in the history of the club.

This season money has been spent too, it's just been spent on duffers!