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FFP for the layman?


robglosta

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Can anybody who is clued up provide an easy to digest overview of FFP, and how it might affect us if we splash the cash this season? 

For arguments sake; if we buy Ince, Weimann, Shackell, Bent, Pearce and an expensive loanee (say, 10/12m) - how does that have an impact on us? Is there a way in which Mel Morris could simply buy them and not have any impact on our FFP requirements? 

In a non-negative way, I would like to satisfy myself that any spending won't be reckless in the longer term if we don't go up. 

 

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It doesn't matter because ffp has been relaxed which means that we can spend as much as we want. Why else do you think that qpr haven't been pubished for overspending?

Not true - QPR situation is completely different because they got promoted and therefore didn't participate in last seasons championship, and therefore couldn't be held to ransom by the FL. Now they've come down there's going to be a serious legal battle to sort that out! 

Forest, Leeds and Blackburn all breached rules - and therefore have/got embargoes. We are no where near those levels so no need to worry 

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It doesn't matter because ffp has been relaxed which means that we can spend as much as we want. Why else do you think that qpr haven't been pubished for overspending?

QPR HAVE been punished. But they are appealing it.

 

Can anybody who is clued up provide an easy to digest overview of FFP, and how it might affect us if we splash the cash this season? 

For arguments sake; if we buy Ince, Weimann, Shackell, Bent, Pearce and an expensive loanee (say, 10/12m) - how does that have an impact on us? Is there a way in which Mel Morris could simply buy them and not have any impact on our FFP requirements? 

In a non-negative way, I would like to satisfy myself that any spending won't be reckless in the longer term if we don't go up. 

 

(Probably too) Basically, acceptable losses. FFP takes account of what you spend vs. what you make. But, certain things are excused, the biggest of which from DCFC's perspective would be youth development. All of that we spent on Moor Farm for new pitches, floodlights etc. etc., won't count. Neither does any depreciation of those facilities, the iPro Stadium or any other fixed assets.

Any losses up to £3m by these criteria, no action.

Between £3m-8m, if the owner injects equity to bring it under £3m no action. If not, they are slapped with an embargo.

Over £8m, slapped with an embargo if they don't go up, fined if they do. Fine is relative to the loss.

That fine is what QPR will be contesting.

Any spending this summer won't show until next year's FFP result - that £7m loss result from January was on the 2013-14 season. And as the owner(s) wrote off some of the loans as shares (IIRC) no action was taken against us.

I believe that the rules are being relaxed for this season (15-16), maybe this is what's triggering this season's spend? I do worry it will be a **** or bust scenario though.. unless there are some deals to increase our revenue that fall into place for this season.

 

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QPR HAVE been punished. But they are appealing it.

 

(Probably too) Basically, acceptable losses. FFP takes account of what you spend vs. what you make. But, certain things are excused, the biggest of which from DCFC's perspective would be youth development. All of that we spent on Moor Farm for new pitches, floodlights etc. etc., won't count. Neither does any depreciation of those facilities, the iPro Stadium or any other fixed assets.

Any losses up to £3m by these criteria, no action.

Between £3m-8m, if the owner injects equity to bring it under £3m no action. If not, they are slapped with an embargo.

Over £8m, slapped with an embargo if they don't go up, fined if they do. Fine is relative to the loss.

That fine is what QPR will be contesting.

Any spending this summer won't show until next year's FFP result - that £7m loss result from January was on the 2013-14 season. And as the owner(s) wrote off some of the loans as shares (IIRC) no action was taken against us.

I believe that the rules are being relaxed for this season (15-16), maybe this is what's triggering this season's spend? I do worry it will be a **** or bust scenario though.. unless there are some deals to increase our revenue that fall into place for this season.

 

Yes ffp has been relaxed for the next season which is why we are able to spend as much as we want to

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I think that a lot of you on here need to do your research. Ffp has been relaxed for the following 15/16 season. Main reason suggested by a journalist is to help the traditional big European clubs like Ac Milan ,Liverpool and Inter Milan to become forces again by allowing them to spend as much as they wish. Our board is taking advantage of this as they are aware that the new tv deal will more than make up for our losses 

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I think that a lot of you on here need to do your research. Ffp has been relaxed for the following 15/16 season. Main reason suggested by a journalist is to help the traditional big European clubs like Ac Milan ,Liverpool and Inter Milan to become forces again by allowing them to spend as much as they wish. Our board is taking advantage of this as they are aware that the new tv deal will more than make up for our losses 

a bit more research would show that championship clubs FFP rules are different to those on the clubs you mentioned. They are under the Premier League and UEFA rules and we are not.

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a bit more research would show that championship clubs FFP rules are different to those on the clubs you mentioned. They are under the Premier League and UEFA rules and we are not.

You are correct but what I'm implying is that our board are spending as much as they can now so we can get into the premier league so ffp won't affect us but this is a risk if we get relegated. However ffp is spending over a few years so this won't be an issue because we have made a lot through sponsorship deals and increasing attendances. 

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You are correct but what I'm implying is that our board are spending as much as they can now so we can get into the premier league so ffp won't affect us but this is a risk if we get relegated. However ffp is spending over 3 years so this won't be an issue because we have made a lot through sponsorship deals and increasing attendances. 

so we technically cant spend as much as we want then. If we dont get promoted we will end up back in the cost saving to meet the 3year spending limits. Only an idiot chairman would sanction stupidly high spending and gamble on promotion.

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so we technically cant spend as much as we want then. If we dont get promoted we will end up back in the cost saving to meet the 3year spending limits. Only an idiot chairman would sanction stupidly high spending and gamble on promotion.

The new tv deal will help a lot though which is why we are gambling because the rewards even if we are relegated are huge. I'm not for or against this plan no I'm objective, I just want the best for my club.

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