Can somebody inform me how these new spending rules that are coming into place work please?
Some questions I would like answered;
1, What is the % of the revenue clubs are allowed to spend?
2. When do these rules start?
3. What if clubs just ignore these spending rules?
4. How can Man City spend way over their revenue and get away with it?
5. Is it going to improve the game? Do you agree with it? Please can you give reasons.
New spending rules!
posted on 4/9/11
Hi. Though provoking if nothing else.
I'm not fully up to date with the rule however, it is very much along the lines of clubs only being allowed to spend within their means and only use football generated income I.e. ticket sales, merchandise, sponsoring, advertising and lots more.
In theory, it will help to level the playing field a little although, in reality, I dont think much will change. The clubs at the top are generally able to create the most football related income anyway.
I dont think clubs can ignore it. They can get creative and sell stadium making rights for £400m though and class that as football related income ala Man City (think I may have killed 2 birds with 1 stone there). I believe they can spend whatever they like in whatever %age they want.
To the best of my knowledge the rules come into force in 2014. Happy to be corrected if anyone knows better.
As to whether they should get away with it or not; well youre implying there that something has already been or could be done that will allow some clubs to do something that may be unethical in the spirit of the rules. That ulitimatley will be for fifa to decide. With the levels of corruption supossedly within that body anyway, the question should be, can we trust fifa to be strict and enforce the rule?
posted on 4/9/11
Well to put it simply you dont really know much about us or the rules.
The FFP rules have now started. Last season we spent around 150m on players alone and made a loss off 123m. This year we have spent around 75m on players. We have also sold some players for approx 25m. The Champions League money (i believe 25m for the group stage) and the 40m a year we get for our sponsorship deal is an extra 65m a year added to our income. On top of this owners are aloud to invest 12m per year from theyre own personal wealth. As our club grows we will also sell more merchandise abroad and ticket prices have gone up as well.
So simple maths would dictate that had we spent another 150m this season we would be making a loss of approx 46m. Thankfully we have actually only spent around 50m net.
Players bought pre June 2010 dont count either. Even if we are paying Tevez 250k per week (12m per year) this wont be included in the FFP, this also applies for at least half of our squad as well. So what we are losing each year wont be the amount viewed upon by Uefa as some players were bought before June 2010.
Lastly for the first 3 years you dont actually have to run at a profit, you can lose around 45m over the course of the 3 years.
posted on 4/9/11
Somewhat defensive. To put it simply.
posted on 4/9/11
Maybe, i was just trying to give him some insight as to point number 4.
May come accross as defensive as it gets annoying that everyone in football seems to think City officials have no idea the FFP rules are in place.
posted on 4/9/11
Thanks for the replies..
Manciti,
Are all clubs owners allowed to invest 12m a year into their clubs? Or is this figure based on a % of the revenue too?
posted on 4/9/11
Every owner can do it irrespective of revenue or size.
posted on 4/9/11
As I understand it, the rules include the following:-
a) They are UEFA rules, not FIFA.
b) They only apply to clubs which qualify for the Champions League
c) However, the current UEFA president Platini would like the rules extended to all clubs
d) The rules don't apply to building new stadia or academies, which UEFA wants to encourage
e) The basic idea is to balance the books at the end of the season, with regards to wages, transfers, ticket sales, sponsorship, and performance related income such as PL TV income, Champions League qualifying award, and so on.
Re your questions, I'll have a bash:-
1) Can spend all "legitimate" income. Sponsorship can't be inflated above market value, however you define that.
2) Not sure. Think they bite in 2014 but what's spent now is relevant.
3) You can ignore the rules but then can't play in the Champions League.
4) UEFA have a committee which can vet clubs "income", including sponsorship deals, which is where questions about MC's £400m have been raised.
5) Is it a good thing?
Overall, I think it is because it does encourage sustainable finances, but it doesn't go far enough because it only applies to a very limited selection of clubs.
Some think that it makes it easier for the select few to dominate the Champions League places, because once you qualify you have an extra £40m to play with, but I think there are different ways of looking at this.
posted on 4/9/11
Thanks mcparland fifa, uefa .
I know what I meant
posted on 4/9/11
City will almost certainly try and cheat the rules. You can just see em being sponsored 150m a year by an airline can't you, that coincindentally is owned by the owners of City, and because the airling doesn't make any money due to large sponsorship deals, it won't pay taxes either. We know the game is bent, and the clubs at the top are more bent than the rest put together.
posted on 5/9/11
It won't happen cos Barça and Madrid are the favourite teams of UEFA and FIFA and cannot meet the criteria.