FFP

Just posted this on another thread: the losses just posted by Forest and Leicester were for 2012-2013 season and FFP does not kick in until 2013-2014. It is the accounts posted up to April 2014 that will dictate who gets fines etc.

Not sure about Forest's accounts, but Leicester's £34m loss included the purchase of the stadium for circa £20m and a significant write-down of players' values due to FFP. Having spent nothing on transfers over last summer Leicester are confident of meeting FFP this season and I would be surprised if Forest are not making similar inroads into their debt to also comply.

In order to satisfy FFP rules I can see the only genuine way would be for the rich sugar daddy owners to write off their debt and convert it to equity so that the club/company is debt free and no longer liable to repayment of the initial loans or interest on those loans. It takes a massive leap of faith on the part of the owners as they are effectively giving all the money previously invested by way of loans to the club. This is what Leicester's Thai owners did recently and I imagine other genuine owners will be following suit. Less genuine, short-term owners may look for other avenues but I can't see how they will achieve adherence to FFP rules.

Leicester's owners converted the debt to equity. This was over £100M and the club isn't worth that. If Leicester shares were traded the owners would have to pay you to take them as they have a negative value. However if as is likely they are promoted then the value of the club will increase so it looks like they have got away with it. They were also wise enough not to spend any more on players this season.

QPR, Bolton and Blackburn are just financial basket cases. If QPR aren't promoted then it is difficult to see them not following the Portsmouth route.

Forest believe they can get round FFP by some sponsorship deals with Kuwaiti companies but the FFP rules are wise to this and all such deals must have a realistic value.

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http://www.financialfairplay.co.uk/financial-fair-play-explained.php

My club, Barnsley, have posted a profit of 2m. This is the second year we have published accounts in the black. Our reward for working towards FFP is almost certain relegation, whilst the rest of the division cheat.

I've adored football for over 50 years, a season ticket holder for the past 35 years at Oakwell, but this is the end for me.

Football stinks to high heaven, The people's game stolen by corrupt businessmen and chancers whilst the authorities line their own pockets and talk crap.

Sorry to hear that Spartacus. First away game I ever saw was Barnsley, I think in '57, and had an affection for them ever since. Really hope things can still work out for you

"Not sure about Forest's accounts, but Leicester's £34m loss included the purchase of the stadium for circa £20m "

The purchase of a stadium would go onto the Balance Sheet as an asset, not into the P&L account as a loss.

Spart, I sympathize mate and agree with you about the crooks and charlatans. There is a strong feeling that NOTHING will be done when really drastic action to free football up for the every-week fan.

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