" Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 6:07 pm
Why are Cardiff City under a transfer embargo?
The Bluebirds have been banned from signing players by the Football League for breaking rules on Financial Fair Play and will continue to be stopped from paying fees for permanent deals until they convince League officials they are falling in line with the regulations.
The Bluebirds have been banned from signing players by the Football League for breaking rules on Financial Fair Play and will continue to be stopped from paying fees for permanent deals until they convince League officials they are falling in line with the regulations.
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Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 6:09 pm
What is financial fair play?
Financial Fair Play – or FFP – are rules set out by the Football League that were seen as an attempt to encourage financial stability in the Championship and below.
They were agreed and voted on by all clubs in April 2012 to take effect from the following season. In basic terms, the rules were designed to reduce and limit losses being made by clubs with the amount of money allowed to be lost by clubs decreasing year on year with sanctions taking effect for the first time last season.
Clubs submit accounts for the previous season to the League by the start of December and – in general – before they are made public. Failure to stay inside the loss limits result in sanctions.
What are the loss limits?
The losses permitted – or permitted deviation as it is called in the rules – has ranged from the first introduction but it is thought the current limits are a loss of £6m. That includes a maximum £3m of “shareholder investment” – i.e a club owner injecting £3m into a club to cover losses.
What losses have Cardiff made?
It is not clear if they even have made a loss. Indeed, it is understood that Cardiff could well confirm a profit for the season in question. The most recent available accounts for Cardiff were published in February of this year, but they relate to the 2013/14 season where the club were in the Premier League. That season they reported losses of £12m.
However, the reporting period regarding the current situation is for the 2014/15 season – the club’s first campaign back in the Championship – for which accounts have not been filed at Companies House.
Cardiff claimed in their statement that they have complied with the FFP rules and it is thought the impending accounts will show a profit, although it appears that the equity invested by owner Vincent Tan has helped towards that and brought about the current situation .
What are the sanctions?
For clubs that are promoted to the Premier League – and therefore not technically under Football League season, they face a fine of a percentage of the money earned from entering the top-flight, a situation Bournemouth are currently facing.
All other clubs are placed under a transfer ban.
Has anyone else been sanctioned?
As mentioned, Bournemouth were among the clubs named by the Football League last month as being subject to sanctions having exceeded the maximum “permitted deviation” of £6m.
It was confirmed the Cherries will face financial sanction “to be finalised in due course” while Fulham and Nottingham Forest will be subject of a FFP transfer embargo for the remainder of the current campaign.
Millwall also fell foul of the rules but escaped sanction as they were relegated to League One. Bolton did not submit accounts for review and so are not permitted to sign players until they do as part of the regulations.
Crucially, the Football League stated in was in discussions with “a number of other clubs over their FFP submissions” – with it now appearing Cardiff were among them with discussions continuing over the last two weeks.
So Cardiff cannot sign a player until the summer?
Technically no, although there are loopholes. The rules state they will be “prohibited from registering any new professional players (permanent contract or loan)” for the remainder of the 2015/16 season, however there are some exemptions to that rule.
Namely, if a club has 24 or fewer established players they can sign a player where the “employee costs of a player signed are less than £6000,000 per anum (or pro-rata)” – which indicates his wage – or if they sell a player and replace him with a player who is on 75% of the wages of the outgoing player and, again, is below the £600,000 mark.
They can also sign goalkeepers on emergency loan if needs be but they cannot, in any circumstances, pay a transfer fee or a loan fee. They can pay the wages of a player signed on loan if it fits into the aforementioned loopholes.
Financial Fair Play – or FFP – are rules set out by the Football League that were seen as an attempt to encourage financial stability in the Championship and below.
They were agreed and voted on by all clubs in April 2012 to take effect from the following season. In basic terms, the rules were designed to reduce and limit losses being made by clubs with the amount of money allowed to be lost by clubs decreasing year on year with sanctions taking effect for the first time last season.
Clubs submit accounts for the previous season to the League by the start of December and – in general – before they are made public. Failure to stay inside the loss limits result in sanctions.
What are the loss limits?
The losses permitted – or permitted deviation as it is called in the rules – has ranged from the first introduction but it is thought the current limits are a loss of £6m. That includes a maximum £3m of “shareholder investment” – i.e a club owner injecting £3m into a club to cover losses.
What losses have Cardiff made?
It is not clear if they even have made a loss. Indeed, it is understood that Cardiff could well confirm a profit for the season in question. The most recent available accounts for Cardiff were published in February of this year, but they relate to the 2013/14 season where the club were in the Premier League. That season they reported losses of £12m.
However, the reporting period regarding the current situation is for the 2014/15 season – the club’s first campaign back in the Championship – for which accounts have not been filed at Companies House.
Cardiff claimed in their statement that they have complied with the FFP rules and it is thought the impending accounts will show a profit, although it appears that the equity invested by owner Vincent Tan has helped towards that and brought about the current situation .
What are the sanctions?
For clubs that are promoted to the Premier League – and therefore not technically under Football League season, they face a fine of a percentage of the money earned from entering the top-flight, a situation Bournemouth are currently facing.
All other clubs are placed under a transfer ban.
Has anyone else been sanctioned?
As mentioned, Bournemouth were among the clubs named by the Football League last month as being subject to sanctions having exceeded the maximum “permitted deviation” of £6m.
It was confirmed the Cherries will face financial sanction “to be finalised in due course” while Fulham and Nottingham Forest will be subject of a FFP transfer embargo for the remainder of the current campaign.
Millwall also fell foul of the rules but escaped sanction as they were relegated to League One. Bolton did not submit accounts for review and so are not permitted to sign players until they do as part of the regulations.
Crucially, the Football League stated in was in discussions with “a number of other clubs over their FFP submissions” – with it now appearing Cardiff were among them with discussions continuing over the last two weeks.
So Cardiff cannot sign a player until the summer?
Technically no, although there are loopholes. The rules state they will be “prohibited from registering any new professional players (permanent contract or loan)” for the remainder of the 2015/16 season, however there are some exemptions to that rule.
Namely, if a club has 24 or fewer established players they can sign a player where the “employee costs of a player signed are less than £6000,000 per anum (or pro-rata)” – which indicates his wage – or if they sell a player and replace him with a player who is on 75% of the wages of the outgoing player and, again, is below the £600,000 mark.
They can also sign goalkeepers on emergency loan if needs be but they cannot, in any circumstances, pay a transfer fee or a loan fee. They can pay the wages of a player signed on loan if it fits into the aforementioned loopholes.
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 6:17 pm
Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now 
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 6:28 pm
Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
It won't be based on the statutory accounts, or if it is I'm guessing they will already have been provided to the league.
I would imagine that all clubs need to submit financial information at least at the end of each season in addition to their annual accounts.
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 6:52 pm
Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 6:59 pm
Forever Blue wrote:Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
They must of given in their account s to fail the ffp
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 7:04 pm
wez1927 wrote:Forever Blue wrote:Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
They must of given in their account s to fail the ffp
Wez, Dalman has already stated today that we have not and won't be until something is sorted out??? ? ?
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 7:06 pm
Forever Blue wrote:wez1927 wrote:Forever Blue wrote:Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
They must of given in their account s to fail the ffp
Wez, Dalman has already stated today that we have not and won't be until something is sorted out??? ? ?
Cardiff chairman Mehmet Dalman said: “We’re not releasing our accounts yet".
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 7:07 pm
The embargo, now in place (albeit subject to possible appeal), will stay in effect for the remainder of the January 2016 transfer window. Cardiff City Football Club again expects to trade within the set FFP limits for 2015/16 and therefore anticipates full participation in the summer 2016 transfer window.
Speaking later in the afternoon Chairman Mehmet Dalman responded
Why are we under an embargo?
'It's a technical answer, we've been in dialogue over the last two weeks but unfortunately in a meeting where different interpretations applied, they came to the conclusion that we were not compliant and therefore the embargo has been put on us. We are disappointed, we will look into it and certainly consider taking an appeal but we want to do it in the spirit of the rules and work with the Football League.'
So are we making a loss and is that why. Can we see the accounts?
'We're not releasing our accounts, but we didn't make a loss and it's a technical interpretation of a particular clause.
'The rules allow us to loan players within limits and we will be in the market to try and do that.
'We can still do a lot of things within the rules, we still have a strong squad and my view has always been we can make much more use of the players we do have because they are a talented bunch.'
The embargo ends any chance of City signing Tony Watt on a permanent deal and unless an unlikely loan extention takes place he will play his last game for City at Wolves tomorrow.
Dalman continued
'We could possibly do a loan but our intention of buying him outright is not going to happen. We will have discussions with Charlton about extending his loan period, but if not we wish him well and thank him for the service he has given us.'
Cardiff face Wolves at Molineux tomorrow looking to avoid a third defeat in a week.
Speaking later in the afternoon Chairman Mehmet Dalman responded
Why are we under an embargo?
'It's a technical answer, we've been in dialogue over the last two weeks but unfortunately in a meeting where different interpretations applied, they came to the conclusion that we were not compliant and therefore the embargo has been put on us. We are disappointed, we will look into it and certainly consider taking an appeal but we want to do it in the spirit of the rules and work with the Football League.'
So are we making a loss and is that why. Can we see the accounts?
'We're not releasing our accounts, but we didn't make a loss and it's a technical interpretation of a particular clause.
'The rules allow us to loan players within limits and we will be in the market to try and do that.
'We can still do a lot of things within the rules, we still have a strong squad and my view has always been we can make much more use of the players we do have because they are a talented bunch.'
The embargo ends any chance of City signing Tony Watt on a permanent deal and unless an unlikely loan extention takes place he will play his last game for City at Wolves tomorrow.
Dalman continued
'We could possibly do a loan but our intention of buying him outright is not going to happen. We will have discussions with Charlton about extending his loan period, but if not we wish him well and thank him for the service he has given us.'
Cardiff face Wolves at Molineux tomorrow looking to avoid a third defeat in a week.
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 7:08 pm
Forever Blue wrote:wez1927 wrote:Forever Blue wrote:Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
They must of given in their account s to fail the ffp
Wez, Dalman has already stated today that we have not and won't be until something is sorted out??? ? ?
Think you will find you will be put on a embargo for not submitting accounts on time
That's why Bolton are under an embargo at this time ?
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 7:08 pm
wez1927 wrote:Forever Blue wrote:Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
They must of given in their account s to fail the ffp
I believe clubs have to submit separate FFP documents rather than the accounts which are filed at Companies House. It appears to me that whoever completed these documents has made a pigs ear of it as I thought, from reading on this board, that the company accounts for the same period would show a profit of about £12m.
How on earth a £12m profit has resulted in a breach of FFP regulations beggars belief which is why I think someone has messed up big time.
Taxi for Ken Choo I would guess.
Re: " Why are Cardiff City under a transfer embargo? "
Fri Jan 15, 2016 10:47 pm
Forever Blue wrote:Forever Blue wrote:wez1927 wrote:Forever Blue wrote:Igovernor wrote:Annis this is crazy, the football league are taking the accounts when City were in the premiership £12m loss, but the premiership has nothing to do with the football league, so that should not be taken into account. and as City have not filed their latest accounts, which from what I gather will show a profit, how the hell can the football league put an embargo on us when they have no way of knowing whether we have broken the rules, city should appeal right now
City have not given in their accounts and at the moment they are refusing to.
They must of given in their account s to fail the ffp
Wez, Dalman has already stated today that we have not and won't be until something is sorted out??? ? ?
Cardiff chairman Mehmet Dalman said: “We’re not releasing our accounts yet".
To the football league tho ?
Re: " Why are Cardiff City under a transfer embargo? "
Sat Jan 16, 2016 12:02 am
Awful management. Why sign players and sent them on loan all the time ffs