£10m Loss

[ramspride]

The club made a loss of £10m in the year 2014/15 but somehow for FFP purposes the loss was £5.6m which is below the £6m limit??? Don't know how that is worked out. The FFP rises to £13m this season but I would think we must be well over that.

[CornwallRam]

Spending on infrastructure and youth development doesn't count towards FFP, so that's the difference in the two figures.

Transfer fees also don't count in profit and loss figures. If you buy a player for £6m, you gain an asset (the player's registration) worth £6m, so there is not net loss or gain. That registration effectively depreciates at the rate of the original fee divided by the years of the contract. So if that £6m player had a 4 year contract, his registration is worth £4.5m at the end of the season - so the books show a £1.5m loss (called amortisation). By my reckoning (and it is an educated guess as all figures are 'undisclosed') this season's transfer fees will cost our accounts c£7m this season. However, given the increase in season tickets and attendances, we will probably turn over a little more and some of last season's £5.6m loss will me from previous amortisation. As long as the wages aren't ridiculous, we should be there or thereabouts on the £13m allowable deviat

[roger_ramjet]

But its viewed over a 3year cycle so its not 13m a year but rather 39m over a 3 year period

[CornwallRam]

But its viewed over a 3year cycle so its not 13m a year but rather 39m over a 3 year period

That starts from next season. This is a £13m standalone, but will form a retrospective year once the rolling £39m kicks in from next season. - view external link

[ramspride]

Thanks for that info Corwall. Now for a bit of homework if you like. How did Florest and QPR get into the FFP difficulties, figures/guesswork if you can.

[CornwallRam]

Thanks for that info Corwall. Now for a bit of homework if you like. How did Florest and QPR get into the FFP difficulties, figures/guesswork if you can.

They simply ignored the rules and spent too much.

QPR are currently contesting their 'fine' so haven't actually had any punishment as yet.

It's a bit odd from Forest's perspective because Fawaz said the FFP was unenforceable and that he would contest the rules, but he never bothered when the sanctions hit. I've read lots of things where knowledgeable people believe that the Championship rules are ripe for a legal challenge, ie, the court case could go either way. A cynical person might wonder if he (or his family) quite like having an excuse to reduce their spending.

Forest are also struggling to get out of embargo as the Al Hasawi family are funding the club with loans, which reduced the allowable deviation - this year they must lose less than £5m or start funding with e

[StensonRam]

On forests FFP it makes me chuckle that when they (mainly TTR) say they'll be out of the embargo this summer presumably losing less than that £5m you speak of but surely this is the bear minimum they need, i don't know how much more they can save past that 5m but it doesn't leave them any room for player purchases and as such may well be free from FFP but have no cash to fund further purchases, if they do then they may find themselves back under an embargo

[chobulous]

Been announced that Burnley have posted a profit of £30.1m for their recent premier league season. Currently sitting pretty at the top of the Championship with 8 games to go. As a business model their approach has to be admired.

[swaledale]

Which kind of answers the question as to whether its too soon to go up! Even if we come back down theres several million in the bank if managed well.

[Rattea]

Been announced that Burnley have posted a profit of £30.1m for their recent premier league season. Currently sitting pretty at the top of the Championship with 8 games to go. As a business model their approach has to be admired.

So tell us what is their business model exactly? Why is it so good?

You can't base that on oh they went up didn't spend heavily and came down and may go back up. If they do what will this business model be? If they don't what will it be?

If you are going to make sweeping statement you need to qualify what they are.