FFP. new rules | Vital Football

FFP. new rules

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Bolshie Budgie

Vital Football Legend
The new UEFA financial sustainability rules came into force in June 2022. They are based on three pillars: solvency, stability and cost control.

As a response to the COVID-19 pandemic, the new rules allow clubs to incur losses of €60m over three years, compared to the previous allowance of €30m. However, the new rules also introduce a spending cap (the so-called ‘squad cost ratio’) on wages, transfers and agents’ fees to 70 per cent of a club’s total revenue by 2025-2026. Clubs are also required to settle overdue payables in specified timeframes.

Currently its 90%.

I think this has got past a few people.......
 
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So in a typical Prem season, the revenues would be approx. £130m.
70% of that means there is a limit of £91m for football wages, agents fees and transfers.

Other costs in a Prem season, say £15m - £20m.

That would leave spare (before taxes) £19m - £24m.

So we could:
a) If MA takes over he may decide to lend the club a pot of money so they could give the squad a boost buy buying some quality and then the club repay him as
we pay in the Prem.
b) Then if we stay in the Prem we could finance the rebuilding of the City Stand
c) Build a network of training centres across East Anglia.
 
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Ugh - doesnt auger well for buying good to excellent players - at 10 million each as an average thats one point nine two point four players a year with the player paying the agent and paying himself his cut of the transfer - looking to National League then.
 
Aren't Chelsea using a loop hole and overspending the rules by spreading the cost over 5 years. So they can.

Forest have been ridiculous with the amount of players have signed and Chelsea too
 
FCBEARS said:
Aren't Chelsea using a loop hole and overspending the rules by spreading the cost over 5 years. So they can.

Forest have been ridiculous with the amount of players have signed and Chelsea too
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Transfer of intangible assets, i.e., the players professional playing rights, use to be spread over the life of the players contract, e.g. player costs £20m with a five year contract. So thats £4m amortised in each of five years Profit & Loss Accounts.

Some clubs took the pi$$ and offered their players eight year contracts. So for a player costing £20m that would be £2.5m amortised per year for eight Profit & Loss Accounts.

UEFA are going to stop this by limiting how many years a players transfer can be amortised (five years) if the players contract is longer than five years.
 
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Steve from Oz said:
Ugh - doesnt auger well for buying good to excellent players - at 10 million each as an average thats one point nine two point four players a year with the player paying the agent and paying himself his cut of the transfer - looking to National League then.
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You could sign four players for £15m each = £60m
Give each of them five year contracts
Amortisation per year £12m
That should be in the 70% cap even for NCFC.
 
Oh BTW. we need to get commercial revenues UP and matchday revenues UP
So that the 70% cap is on a larger figure........
 
I see Sheffield United on verge of being taken over by a Nigerian billionaire. He is worth 6 billion.

Are we still owned by someone worth £10?
 
yellow belly said:
And if selfish Smiff has her wishes granted we will be owned by Tom the Cabin Boy who is worth less than that
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Can't be tom the owner I mean it'd be like mean being the owner with £100 in my bank account.would truly be a disaster unless he just sells it asap
 
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