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Financial Fair Play

Jordinho said:
Premier League clubs have voted in favour of developing plans to introduce a spending cap.

A majority of clubs voted in favour of the Premier League doing the final economic and legal analysis needed to create a spending cap model.

The model will be presented to clubs at June's AGM and - should clubs vote in favour then - it will replace the Profit and Sustainability Rules currently in place, from the 2025-26 season onwards.

Manchester United, Emirates Marketing Project and Aston Villa voted against the possible introduction of a spending cap on Monday, while Chelsea abstained.

https://www.bbc.com/sport/football/articles/cpegd3dy8j7o
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Why did villa vote against, do they seriously think they could become big enough to break it?
 
I think caps work relatively well in some sports.

Can’t see the cheats in the PL agreeing to this without also having a plan to get around it.

Can see an increase in City players having personal sponsorships with a certain airline for example.
 
Lilbaz said:
Hopefully goes through. Then put pressure on uefa to do the same.
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But they're saying the level is rumoured to be at 4 to 5 times the the amount the lowest PL team receives in PL money, which is approximately £100m....so £400-500m?

That's massively high if per season.
 
ricky2tricky4city said:
But they're saying the level is rumoured to be at 4 to 5 times the the amount the lowest PL team receives in PL money, which is approximately £100m....so £400-500m?

That's massively high if per season.
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I heard 4x. Which would be around £400m. Which is wages, amortisation and agents fees.

It's high but if you compare it to uefas current of 70% of turnover. It is a cut for any team with a turnover of £571m or more.
 
Lilbaz said:
I heard 4x. Which would be around £400m. Which is wages, amortisation and agents fees.

It's high but if you compare it to uefas current of 70% of turnover. It is a cut for any team with a turnover of £571m or more.
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The lowest team in the last available figures was Leeds with £112m ..so that's up to £448m using 4X

The problem with it is, it has no sustainability side. A team can still spend up to that top amount that is way above their turnover. Using a percentage of turnover instead for individual clubs is a robust solution on keeping clubs solvent. The clubs then clearly know if they want to spend more they have to increase their turnover.

£448m is still way above what the majority of teams could and should spend. And it would be interesting to see how that figure lines up for, let's say, the last two seasons for the top 6 teams? just how restrictive is it??
 
Baleforce said:
I think caps work relatively well in some sports.

Can’t see the cheats in the PL agreeing to this without also having a plan to get around it.

Can see an increase in City players having personal sponsorships with a certain airline for example.
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Hidden accounts in Panama, paid for by the Sheikh himself? The cheaters will always find new ways to cheat.
 
ricky2tricky4city said:
The lowest team in the last available figures was Leeds with £112m ..so that's up to £448m using 4X

The problem with it is, it has no sustainability side. A team can still spend up to that top amount that is way above their turnover. Using a percentage of turnover instead for individual clubs is a robust solution on keeping clubs solvent. The clubs then clearly know if they want to spend more they have to increase their turnover.

£448m is still way above what the majority of teams could and should spend. And it would be interesting to see how that figure lines up for, let's say, the last two seasons for the top 6 teams? just how restrictive is it??
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No. They will still be limited to 85% of turnover to be spent on wages, amortisation, agents fees. But the max a team can spend (utd, city...) is 4x the lowest teams revenue (the estimated sheff utd would be about £105m this season.

Believe anything over they'd have to pay a luxury tax on (the 4x not the 85%). But if in europe will be limited to 70%.
 
I'm guessing that the luxury tax would also count towards the % of turnover allowed to be spent on players. So if you do overspend the pl spending cap. It will actually cut your spending allowed under uefa and the pl cost control rules.

Kieran mcguire is going to be busy.
 
Lilbaz said:
No. They will still be limited to 85% of turnover to be spent on wages, amortisation, agents fees. But the max a team can spend (utd, city...) is 4x the lowest teams revenue (the estimated sheff utd would be about £105m this season.

Believe anything over they'd have to pay a luxury tax on (the 4x not the 85%). But if in europe will be limited to 70%.
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I think your right. After listening to Jordan/Maguire.

Although it said this in the article..

The model will be presented to clubs at June's AGM and - should clubs vote in favour then - it will replace the Profit and Sustainability Rules currently in place, from the 2025-26 season onwards.

I'm assuming that means it will be part of the new rules that include the 70% and 85% allowed levels that are also not in place yet. (ie we are still currently on the old rules..total losses etc)? I think was was getting ahead of myself
 
ricky2tricky4city said:
I think your right. After listening to Jordan/Maguire.

Although it said this in the article..

The model will be presented to clubs at June's AGM and - should clubs vote in favour then - it will replace the Profit and Sustainability Rules currently in place, from the 2025-26 season onwards.

I'm assuming that means it will be part of the new rules that include the 70% and 85% allowed levels that are also not in place yet. (ie we are still currently on the old rules..total losses etc)? I think was was getting ahead of myself
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The current rules for the prem will be replaced. You will then have the 3 rules that you will have to abide by.

1/ squad cost control. Every team in the prem can only spend 85% of turnover on wages, amortisation and agents fees.
2/ uefas psr. Teams in europe can only spend 70%.
3/ spending cap. 4x the turnover of the lowest prem team.

1 and 3 still have to be voted in. But it looks likely. 1 has been voted in principle. 3 is further investigation.
 
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Can anyone explain why Arsenal aren’t at risk with FFP? I know there were exceptions made for Covid, but it still looks like Arsenal are averaging more than £35m per year in losses over 4-5 years.

1714987078825.png
 
elltrev said:
Can anyone explain why Arsenal aren’t at risk with FFP? I know there were exceptions made for Covid, but it still looks like Arsenal are averaging more than £35m per year in losses over 4-5 years.

View attachment 17126
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You have allowable losses such as stadium (they're still paying for theirs), womens team, academy etc...

Some of their loss will be depreciation of assets aswell. Think ours was about £70m a year.
 
I'm not sure they'll be able to throw another 200 odd million around this summer. They have to pay around 27m or something to make Raya permanent and they don't really have many solid players left to sell. Maybe Smith-Rowe, Partey, Nketiah or even Jesus, Hmm I suppose they could raise a decent amount. Guess we will have to wait and see.
 
dingdongo said:
I'm not sure they'll be able to throw another 200 odd million around this summer. They have to pay around 27m or something to make Raya permanent and they don't really have many solid players left to sell. Maybe Smith-Rowe, Partey, Nketiah or even Jesus, Hmm I suppose they could raise a decent amount. Guess we will have to wait and see.
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They got cl money aswell.
 
elltrev said:
Can anyone explain why Arsenal aren’t at risk with FFP? I know there were exceptions made for Covid, but it still looks like Arsenal are averaging more than £35m per year in losses over 4-5 years.
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They were right at the limit, hence they had to loan Raya and promise to pay Brentford for him later.
(As others have said, stadium costs etc are not factored into the £35m)
 
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