Ffp?

[PhoneymcRingRing]

So I keep hearing that FFP won?t affect us next season I presume that doesn?t mean we can go out and spend 400m. So how much can we spend?

Secondly if we go spending this season does that mean we won?t be able to spend again for another 3 years?

[TANYA_]

So I keep hearing that FFP won?t affect us next season I presume that doesn?t mean we can go out and spend 400m. So how much can we spend?

Secondly if we go spending this season does that mean we won?t be able to spend again for another 3 years?

i was wondering the same. I have seen talk that we can spend 250m this window but id wager,

that would be us screwed for the next 3 year cycle.

Unless we sold players during that time of course.

I read today that we were lucky to sell Miggy and Lloyd Kelly otherwise we would be facing a points deduction

for breaching FFP.

Something isnt right, we sold Minteh and Anderson to stay within the limits, now we needed to sell them too?

I can see FFP being changed massively within the next year now that the media darlings Manure are skint.

Long may it continue too

[Nufcian]

i was wondering the same. I have seen talk that we can spend 250m this window but id wager,

that would be us screwed for the next 3 year cycle.

Unless we sold players during that time of course.

I read today that we were lucky to sell Miggy and Lloyd Kelly otherwise we would be facing a points deduction

for breaching FFP.

Something isnt right, we sold Minteh and Anderson to stay within the limits, now we needed to sell them too?

I can see FFP being changed massively within the next year now that the media darlings Manure are skint.

Long may it continue too

I?d read we were at risk of points if we hadn?t sold Minteh and Anderson, which we knew at the time anyway? not seen anything about Miggy and Kelly, and think someone has been taking the p!as if that was written anywhere.

[Marat18]

i was wondering the same. I have seen talk that we can spend 250m this window but id wager,

that would be us screwed for the next 3 year cycle.

Unless we sold players during that time of course.

I read today that we were lucky to sell Miggy and Lloyd Kelly otherwise we would be facing a points deduction

for breaching FFP.

Something isnt right, we sold Minteh and Anderson to stay within the limits, now we needed to sell them too?

May be Minteh and Anderson was 23-24 season, Kelly and Miggy for 24-25.
I wouldnt say we were lucky, it might be that we would have sold someone by end of June 25 to stay clear of FFP.

This 250 mln rumored could be from july for 25-26 season, as 22-23 spending is written off the books - Botman, Isak, Gordon

[Tutfoster1892]

I think they are scrapping PSR season after next by all reports.. if thats true then whatever is being brought in to replace it may mean we have a free reign this season

[Ragatino]

I think they are scrapping PSR season after next by all reports.. if thats true then whatever is being brought in to replace it may mean we have a free reign this season

They're not scrapping it they're looking at different system. I think it's call anchoring or something I can't remember. However, but the feedback from the Players Union is that they see this as a potential wage/salary cap.

What everyone has to realise is that these PSR, financial rules are brought in to control clubs like us, Villa, Forest. However, it's also to make the owners of clubs money.

The vast majority of clubs are owned by US investors. US sports, NBA, NFL, MLB etc all make billions in profit. They all have salary caps, you know, to make the leagues competitive.

Yeah right! The same teams win the title over and over. The salary cap is to ensure the owners make most of the money.

Anchoring is basically the money generated by the 17th place or 20th placed team is used as the base rate. A ratio of between 4.5x and 5x if available for the winners of the Premier League.

Each club 19th to 2nd get's to lose a certain about.
Example - 20th makes 100m means:
1st can spend (4.5x) 450m - (5x) 500m.
5th can spend 317.5-375m.
10th can spend 225-250m.
15th can spend 112.5-125m.

This makes a lot of sense compare the the nonsense 105m loss over 3 yrs. A figure that hasn't grown with real world or 'football' inflation since inception 2013/14.

[Sclox]

Are they replacing PSR with that SCR thing? Squad Cost Ratio or something. Found this about it: Work in Progress by the look of it.

"a new financial model based on Squad Cost Ratio (SCR) was being considered as a replacement. The SCR system, which limits spending on wages and transfers to a percentage of club revenue, was trialed alongside "Top to Bottom Anchoring" rules. While clubs expressed interest in the SCR model, a formal vote on replacing PSR was postponed due to a lack of consensus on the timing of the transition."

[Ragatino]

Whether or not they move to an anchoring model remains to be seen as the players believe this will lead to restricted salaries.

[Ragatino]

May be Minteh and Anderson was 23-24 season, Kelly and Miggy for 24-25.
I wouldnt say we were lucky, it might be that we would have sold someone by end of June 25 to stay clear of FFP.

This 250 mln rumored could be from july for 25-26 season, as 22-23 spending is written off the books - Botman, Isak, Gordon

To answer the questions, how much? How come we had to sell? What impact going forward?

Marat is pretty much correct.

So from the top.

1. FFP doesn't exist anymore FFP - Financial Fair Play had to be rebranded by the Prem as it is not fair play it's financial controls. FFP is now called PSR - Profit & Sustainability Regulations. So, anyone who talks about FFP with authority (not Phoney, he's asking the question) is full of Sh!te.

2. PSR - There is no direct correlation between Profit and Sustainability. It's yet another nonsense buzz term to justify the corrupt control to protect the Cartel. If it was about Sustainability each owner would have to have a pot of cash set aside that would cover all costs for 1 calendar year for their given club. With regard to Profit, without clever accounting, NO PREMIER LEAGUE CLUBS MAKE A PROFIT. It's all BS.

3. The Rules - clubs are allowed to make a loss of no more than ?105m over an given 3 yr rolling period.

4. How that breaks down:

As Marat comments, the sales of Minteh and Anderson was 23-24 season, Kelly and Miggy for 24-25 are on the specific 2 yrs accounts.

We have wiped off the 3 yr cycle the big spend of 22-23 - Total market value of arrivals: €144.40m
https://www.transfermarkt.com/newcas...saison_id/2022

23-24 - Total market value of arrivals: €145.50m
https://www.transfermarkt.com/newcas...etailpos=&w_s=

The Champions League revenue generated has been a huge benefit to the plus column of the accounts. Requalification & finishing 5th which generated around ?165m

https://www.football365.com/news/pre...money-table-tv - Based on the 22/23 (we finished 7th and earned ?154.7m)

The new Swiss model of the Champions League group stage, generates around ?80-100m in revenue for all the clubs.

With our continuing improvements in our commercial revenues, the Adidas global partnership, adding new sponsorship deals, plus the Premier League & Champions League money mean that our commercial income still growing stronger every season.

5: Impact going forward

Incoming revenue is all booked in the specific tax year in which the club makes that money. All profits from TV, Commercial, Match Day etc are booked for this year.

Outgoing revenue is booked against the annual Amortisation rate of the asset purchased. In the case of a Football club, the Asset is the player. The players purchase price is Amortised (appears on the accounts as a division of the whole over the length of the contract) over a 5 yrs period as the players generally sign a 5 yr contract.

So Tonali as an example - 23/24 Signed for 58.90m Euro / ?49.38m - Call it ?50m On the 23/24 season accounts ?10m is booked for the player acquisition of Sandro Tonali + whatever agents fees etc so let's say it was ?15m in total.

24/25, 25/26, 26/27, 27/28 accounts will all show for a line item of Sandro Tonali of ?10m.

However, Usually players that are playing well get a 'contract renewal'. This secures the club's asset should the player be subject to a transfer the owning club has the strength in negotiations to dictate a high transfer price due to the long contract securing the asset.

At the same time, renewing a contract for a player over a further 5 yrs (or in Chelsea's case 8 yr contracts & Haaland at City 10 yrs) in year two or three of the player inital contract dillutes that amount recording in each years accouts.

Using Sandro again as the example. 23/24 he got suspended didn't play for 10 months. Not good. 24/25, this season stella season world class performer. 25/26 No doubt the club will offer him a new contract.

So 23/24 - ?10m, 24/25 - ?10m, 25/26 (new 5 yr contract) the initial ?50m - the 2 x ?10m = ?30m quid - New contract is 5 yrs. The remaining cost of the asset is amortised over that new 5 yr period. So 30/5= 6m. The club reduces it's overhead on the asset by 4m a year just by renewing the contract.

This doesn't change the fact that in real cash money terms, AC Milan get 50m quid from Newcastle united for the player. It's all just clever accounting and also goes to answer the questions a lot of fans have when they ask 'How can Chelsea, Red Filth, City, Goons, Bindips get away with spending so much.

They use the accounting practices and have huge revenue streams.

What does it all mean for NUFC's financial situations?

The additional UCL money combined with the lack of spending for the 18 months mean that we have a lot of bandwidth to spend this window.
Also, the huge amount of additional revenues from next seasons UCL money (80-100m) compared to 30-40m we made last time we competed in UCL season before last.

Good thing is that we have strong control on our Profit to wages ratio. Well below the 70% UEFA threshold.

Shipping out Willock & Longstaff, seeing a few of the fringe players like Jamal Lewis off the books we're in rude financial health for this season and we should be able to add 1 or 2 quality additions in each of the following 2-3 seasons.