Financial Fair Play and us

[Tombo]

Sorry to bring this thread back up, some interesting reading. I recall Sam Rush saying that FFP would not be a problem this year, something I was sceptical about given the pay rises/more expensive players, loan fees (which hit the profit/loss immediately, as they relate to that season), and the loss of TV revenue due to the play offs. 

I did a very rough exercise a while ago and I reckoned that to hit the £6m max loss permitted for 2014/15 that we would need additional revenue/cost savings of £3-5m, after taking into account a slight increase in gate receipts. 

It will be interesting to see where we end up when the accounts are published. Agree with Daveo though that it's impossible to know what the final result is.

I believe the rules now say you're allowed losses of up to £39m over 3 seasons. So works out about £13m a year, but with leeway because we've got assets to sell and costs we can cut if we're in trouble. We could theoretically lose about £25m this year and get away with it (since we lost £7m a year in the previous two) as long as the following year we don't lose more than another £7m, exceeding the £39m point.

[Tombo]

Obviously I don't really know what I'm talking about but I think those are the rules.

[davenportram]

Obviously I don't really know what I'm talking about but I think those are the rules.

you're right at last. The new rules are for the 16-17 season. 14-15 £3m upto £6m with owner investment. 15-16 £2m upto £13m with owner investment

http://m.bbc.co.uk/sport/football/29940463

[Diag Ram]

Yes that £39m over three seasons starts this season. So I was talking about the season just gone. We should be in that realm quite comfortably. The season just gone, not so sure, but Sam says we're ok, he's not the type of guy who would say something like that only to end up with egg on his face come January, so I presume the additional revenue/cost savings required to fund the additional wages/loan fees has been found.

[davenportram]

Yes that £39m over three seasons starts this season. So I was talking about the season just gone. We should be in that realm quite comfortably. The season just gone, not so sure, but Sam says we're ok, he's not the type of guy who would say something like that only to end up with egg on his face come January, so I presume the additional revenue/cost savings required to fund the additional wages/loan fees has been found.

er it doesn't start this season, it comes into  effect for the 16-17 season. This seasons account will be put to the league in December 2016 and we need to be in the £2m to £13m loss with investment to avoid sanctions with no reference to an aggregate over past seasons

when the 16-17 accounts are submitted in December 17 then the £39m over three seasons is taken into account.

[davenportram]

Yes that £39m over three seasons starts this season. So I was talking about the season just gone. We should be in that realm quite comfortably. The season just gone, not so sure, but Sam says we're ok, he's not the type of guy who would say something like that only to end up with egg on his face come January, so I presume the additional revenue/cost savings required to fund the additional wages/loan fees has been found.

Its not £39m over three years without penalty. Its £15m without needing to explain funding of that loss, up to an aggregate of £39 . However when there will be additionjal regulation if losses between £15m and £39m are made.

(football league representative quoted on SKY SPorts) From the beginning of the 2016/17 season, Championship clubs will have their financial performance continuously monitored over a three season timeframe and will be permitted to lose up to £15m during that period without having to be prescriptive over how that loss will be funded. 

"In addition, they will be permitted to lose more than £15m, but not more than an aggregate of £39m (compared to an equivalent figure of £105m in the Premier League) but will be subject to additional regulation when doing so.

"This will include providing evidence of Secure Owner Funding and Future Financial Information for the two seasons ahead."

http://www.skysports.com/football/news/11095/9552172/the-championship-clubs-are-set-to-change-their-ffp-rules

My previous reply wasnt very clear so here it is laid out a bit more clearly I hope

 

Season                        Accounts lodged                Allowable losses on that seasons accounts

13-14                                Dec 14                           cant remember the limits but we passed.

14-15                                Dec 15                           no more than £3m up to £6m with owner investment

15-16 (this season0          Dec 16                           no more than £2m up to £13m with owner investment

16-17                                 Dec 17                           £15m over 3 years - regulation for £15-39m losses

From this you can see that this seasns accounts will be scrutinised as one off with no reference to other years. From reading the regulations as well it appears that even under the new rules if a club posts losses of between £15m and £39m across three season will face sanctions.