Details are vague as yet but a rough idea has been outlined for what is essentially a watered down version of the UEFA Financial Fair Play rules that will officially kick in next season.
Essentially the framework of these new rules, whilst still in development, will look at addressing three areas of concern amidst worry from clubs that money from the lucrative new TV deal due to start next season wouldn’t end up staying with clubs and would instead just be used by agents to ramp up wages and transfer fees ultimately not benefiting the club at all.
The three areas included in the rules are to limit losses a club can make avoiding a situation where a team can bankroll itself to success. The second area looks toward club security by ensuring losses are covered by the owners assets, and finally the third area looks to address player wages after Deloitte revealed that 70% of all Premier League income was dished out in wages alone.
1 – Restrictions on club making a loss of more than £105 million over three years
Basically this is just as it says on the tin. The restrictions could come in a number of forms such as having losses limited further or a points deduction, but as this is still a new concept the devil in the detail is yet to be agreed. It means that teams won’t (or shouldn’t) be able to splash a load of cash on transfer fees unless their business can actually afford it.
It’s not quite as black and white as it appears though as money can be offset from losses by spending it on things such as ground improvement, training facilities and youth academies.
2 – Clubs who report a loss of over £5 million need to have those losses guaranteed by the owners assets
This is to avoid a Leeds/Portsmouth type scenario. Realistically it happens already as all clubs owners will have to agree to this before the yearly accounts are signed off, but at least it will be down in writing now and the Premier League can take action if needed, although what sort of action remains to be seen.
3 – Clubs whose wage bill exceeds £52 million can only increase that by £4 million per season
This is to limit what a club can spend on wages. We’re just about on the limit of this using figures and an educated guess. However if done properly it could be the rule that helps us out as it limits what other clubs can offer.
Having said that, this only applies to the central split of TV money (the equal share each club receives every season) and clubs can still use revenue from other streams, like ticket sales or commercial revenue, to subsidise their wage bill so the net result will still be that the clubs with bigger income can spend more on wages.
Financial control is a good thing and should be welcomed with open arms but, as always, the success of the rules hinges on their implementation and how they are followed through. These rules have been voted in by a majority but as yet there is no finalised version of what they will entail, nor is there a set date for when they are to come into force although as early as next season has been mentioned. You can read a helpful little Q&A on the rules here.
Will it make a difference though?
Good info prem. It is a great idea for the game as a whole, but I just can’t see the sugar daddies ever letting it work.
Newkie(Quote)
Interesting that Reading abstained-and the other clubs as well. Chelsea in favour but Fulham and West Brom against 😯
Newkie(Quote)
NEWKIE from last thread,ime watching you mind 😡
icedog(Quote)
<<<<<<<<<< thinks these rules will be very good for us in the long term
TOONARMYELITE(Quote)
Ice 😀
Newkie(Quote)
The other new boy is obviously off to a good start.
Lee Ryder
“Haidara communicating well here and he’s just hammered home the opening goal with a low leftfooted effort after overlapping run #nufc 1 0 up”
seanp(Quote)
I see this as good news for Ashley and bad news for every dream of every Toon fan.
Basically, do the clubs with the highest wage bill get to keep it that way – and for us middle-of-the-roaders, will it kill the dream of a Sheikh owner ever coming in??
BIGPAPA(Quote)
Think I read West Brom against these proposals as they wanted no club can make a loss instead of £105 million , where City are against it as they want an unlimited amount of losses or atleast more than £105 million
Johno Toon(Quote)
This will change nothing at the top and unless we get there . . . it may stop the Leeds/ Pompey scenario though.
I’m much more interested in what happens on the field tomorrow and that’s what drives fans not FFP.
georgio(Quote)
Very good infor Prem.
I support this but don’t think it goes quite far enough. Still, a good first step towards fiscal sanity IMO
MDS(Quote)
Johno-Aye that makes sense. I thought maybe their idea was that big clubs wont spend ridiculous money on young english players any more-or even players in general-which may upset some sides. But then we dont really have many feeder sides anymore, Arsenal and Southampton are the closest 😀
Newkie(Quote)
mixed opinions, can’t really see how it would stop clubs going into administration, ie if a small club with 100m debt and a 50m a year wage bill gets relegated they will still be in trouble, how would point 2 work with a plc?
alanthedog363(Quote)
retrospective points deductions often hammer the final nail in the coffin of the club rather than those individuals that took risks
alanthedog363(Quote)
i think the best solution would be to set a wage limit to clubs on an individual basis at around 60% revenue, and look at extending parachute payments to cover length of contracts, think it’s 2 years at the moment, maybe change it to 4-5 years, these clubs can then push for promotion on a stable footing, forgo the rest of payment if promoted, if not then it doesn’t trigger a firesale to try and stay alive
of course this would mean the premier league having to work more with the fa as it’s after the clubs drop from the prem that they are in trouble
alanthedog363(Quote)
Al – Paeachute payments are already four years long. You get two decent wedges and it reduces for the following two allowing a period of transition. If you get promoted again in thst time the payments stop, like we only got one parachute payment for our first season. Can’t remember what it is exactly but think it’s something 11m a season for the first two after relegation dropping to 8m a season for years three and four.
Which is fair enough really. You cant have relegated clubs having it all their own way as theyll just end up coming straight back up which is unfair when they are already getting a huge helping hand anyway.
toonsy(Quote)
i do agree toonsy but there is such a deficit, that’s where the trouble lies
alanthedog363(Quote)
parachute payments havn’t meant wolves brum blackburn blackpool or bolton
are going to go straight back up, all relegated in last two seasons, all in bottom half of the league
cardiff at the top has never been in the prem
alanthedog363(Quote)
Problem with the new rules is that the top 4-5 clubs have already spent a fortune and built up their squads so what chance does anyone now have of catching them up?
I read that the new rules are tailor made for Man U ( shocker ) as they have the biggest revenue, but what about the fact they have the biggest debt, £700 million, yet they are still spending 28m on Van Persie, of course that will be conveniently ignored along with the fact that their owners had to borrow the cash to buy the club so how the hell could they cover that debt?
I can just see it widening the gap and making the so called bigger clubs positions more unassailable.
Robert(Quote)
i think the emphasis needs to be on support rather than punishment
fans get punished not those in charge, maybe a set up where the fa can buy clubs in add min, underwite and re sell them, but the premier league has the money not the fa
alanthedog363(Quote)
at the same time, 4-5 clubs are probably the reason half the other teams get so much, wigan and reading don’t draw in the fans to pay sky subscribtions
alanthedog363(Quote)
Prem good read 😉 but I wonder if owt will come from it as I wouldn’t be surprised to see it just becoming a talking point with no real bite.
I just can’t see owt happening that will make it more fair for all clubs, as IMO the big boys will get bigger and continue feeding of the smaller clubs
Big Dave(Quote)
You’ll get answer about your loan without delay and the cash from temporary loans is generally deposited in your checking account within 24 hours. When your paycheck will come in, you are able to repay the money, along with your son didn’t must hold off until payday to feel better.
Katrice(Quote)