The 'Profit & Sustainability' Thread | Page 19 | Vital Football

The 'Profit & Sustainability' Thread

I'm unsure of the correct response here, so apologies if my massive ManFlu makes me choose the wrong phrase.

Utter bollocks seems to suffice.

The writer (oxymoron) clearly doesn't understand how FFP works or that there's a difference between the far tighter assessment in the EFL and the freer assessment in the Prem for a start.

We passed under EFL rules (they cannot now come back to us in any event) and one season into the Prem it's impossible for us to breach FFP (let alone on revenue estimations we still have wriggle room to spend in January.

I'm guessing said writer doesn't know that the wage stipulations are separate regulations to FFP as well and although % capped, there's no way we've lost the likes of Jedi, Hutton et al and given their replacements that the replacements are on more money, so again bullshit of the highest order.

Writer also doesn't seem to be aware of the difference between spending and debt, let alone the fact that for any FFP figures the end of the accounting period is just that, you don't then get a fortnight to balance the books (that accountancy, fack all to do with FFP because the season is over - we also have to submit estimated and provisional figures after the Jan window closes anyway) so we and the Prem will know roughly where we are.

The two week claim to balance books is even more bizarre when you think of the period the window is actually shut for the end of the season anyway (let alone we are into a new financial year by then, so a new FFP period).
Creep mode on.

I did say the expert would speak.

Creep mode off.
 

The Fear

A Wise Man (once sat next to him)
I do remember a good few of you calling bullshit when we had the snake oil salesman here (and not liking me calling him that!)

I'll wait, watch, see and hope personally.

I do worry re the ground sale and the valuation. Either we are way out in the valuation, or Derby County are!
 

mike_field

Vital Football Legend
That was only on the claimed size of a potential breach and the fact they were guaranteeing it (& points deduction) before we'd even put the provisional paperwork in.

Our valuation is fine, the EFL have passed it - they can't come back now and the Prem mechanism for FFP punishment is only a fine - and being in the Prem now, arguably the value of the stadium rises because of profile/commercial pull etc - so we're in the clear. I don't believe (unless I've missed something) that Derby are being looked at over valuation either - Sheff W are in the news over the 'timing' of the deal going through - which is strange as the EFL passed it anyway.
 
It ranks the articles in the media when we were in the EFL stating that we were in huge trouble over FFP. We weren't, not to an extent which wasn't manageable. Selling Jack was talked about because we were going bankrupt, not because of FFP.
 

wal

Vital Reserves Team
what i can make out .its all about the sale of VP and bodymoor heath and it was all above board ass far ass i know its all because of the dick at borra complaing derby and sheff wed have done the same thing but iff the ground is a asset then i cant see any problem in selling it to help balance the books just like players are sold
but we will soon see come january and if we buy players or not as to what mess we may be in
 

Wurzel

Vital Football Legend
Anyone got anymore information about our ffp position? I keep on reading fans and journalists saying we are in ffp trouble without backing it up with facts, so does anybody actually know the facts?
 

mike_field

Vital Football Legend
With Aston Villa's return to the Premier League for the 2019/20 campaign, there are certainly plenty of hot topics to discuss - whether that be the remarkable winning run to secure Play-Off promotion in the first place (and whether we can repeat it in the second half of the year to ensure survival), or our summer dealings (and now January captures) and the ongoing topic of Financial Fair Play (Profit & Sustainability) is never too far behind.
https://astonvilla.vitalfootball.co...adlines-should-fans-be-getting-twitchy-again/
 
Fair comment, Mike. Me, I'm twitchy about whether we'll stay up or not. But that's it. I'm convinced there's no FFP problem, stay up or not. And Jack's future is in our and Jack's hands, nobody else's.
 

mike_field

Vital Football Legend
Completely agree McP, I don't see how we've breached certainly for this year, and on the drop, any breach then is easily solved before it becomes an issue with dipped revenue.

I'm loving the comments on Facebook though PMSL
 

Pangloss

Vital Newbie
Twitchy if and only if we go down.
Incidentally FFP is an absolutely disgrace, designed to ensure that the big clubs stay big with no challengers.
 
Twitchy if and only if we go down.
Incidentally FFP is an absolutely disgrace, designed to ensure that the big clubs stay big with no challengers.
I've got some sympathy for FFP. The background was clubs spending way beyond their means, getting into debt and in danger of complete collapse or at least dodgy enough position to not be anything like as competitive as they were.

It was driven by owners who gambled, or owners who were near enough downright crooks. There's a reason why clubs like Leeds and Notts Forest have spent so long out of the PL, and why other clubs like Portsmouth and Cardiff are still on shaky foundations. By and large the owners didn't suffer; they "lent" the clubs money rather than putting in equity, so the clubs ended up with a massive debt owed to the owner. I'm astonished at a system which allows the owner, who controls the club, to have the club take on massive debt owed to the owner. I'm astonished it's not against the law (apparently) and there is no come-back.

FFP has been reasonably successful at stopping that. Particularly the bit which severely restricts what a club is allowed to lose, unless the owners covers further losses with equity. Probably the only thing which is a bit unfair is that the owners are restricted in how much loss they can cover with equity, hence making it difficult to catch up with the richer clubs. I think they can catch up, with success on the field, but it takes longer.

Incidentally, I like the fact our owners are only funding the club by putting in equity, and have wiped out the debt. A mark of very good owners.
 

col8

Vital Football Legend
I hope the owner are willing to back the club in the Championship as much as they have backed it in the Premiership. I have looked at the remaining fixtures and can only see seven points between now and the final game against West Ham.
35 points wont be enough to keep us up.
 
It's hard to expect us to be heavily backed if we go down. We will lose a lot of income from the loss of TV money, we lose income on commercial opportunities as we're not as attractive as a Championship club, we lose revenues on ticket sales as the prices will have to fall, as an asset the club depreciates, including the value of players.

Parachute payments only go so far to offset this.
 

col8

Vital Football Legend
It's hard to expect us to be heavily backed if we go down. We will lose a lot of income from the loss of TV money, we lose income on commercial opportunities as we're not as attractive as a Championship club, we lose revenues on ticket sales as the prices will have to fall, as an asset the club depreciates, including the value of players.

Parachute payments only go so far to offset this.

The way things are around Villa Park at the moment you can expect the parachute payment to cover the TV revenue and ground to be sold out week after week, season tickets remain the same price as you get 4 more home games a season. The sale of Grealish will cover any shortfall in expected revenue.