How Does FFP work?
Mon Jan 18, 2016 7:47 pm
I was just wandering how does FFP actually work. Both Derby and Middlesbrough has spent millions this season on new players and have done it without the parachute payments of the premier league. Derby had a net spend of £20 million in the summer, how is this possible when we (Cardiff City) have those added parachute payments and yet we are unable to compete financially for the leagues best players due to the same FFP regulations.
Re: How Does FFP work?
Mon Jan 18, 2016 7:59 pm
Firstly the FFP rules apply to last years accounts so in theory Derby and Middlesbrough can spend massively this year get promoted and pay a fine to the football league next year when they are in the Premier League (that's what Bournemouth did)
The basic rules are that a club cannot lose more than £6m in a season. An owner like Tan can fund the club but by no more than £6m per season whether its by loans or equity. I think VT could put extra money into the club provided ait was a gift. I'm not 100% certain on that however.
So whatever our turnover was (including the parachute payments) we obviously spent that and more than the permitted £6m hence the embargo. It appears that VT wrote off £13m of debt and this was supposed to have made us profitable for that period. However the FL did-not accept this and put an embargo on us.
The basic rules are that a club cannot lose more than £6m in a season. An owner like Tan can fund the club but by no more than £6m per season whether its by loans or equity. I think VT could put extra money into the club provided ait was a gift. I'm not 100% certain on that however.
So whatever our turnover was (including the parachute payments) we obviously spent that and more than the permitted £6m hence the embargo. It appears that VT wrote off £13m of debt and this was supposed to have made us profitable for that period. However the FL did-not accept this and put an embargo on us.
Re: How Does FFP work?
Mon Jan 18, 2016 8:34 pm
Tony Blue Williams wrote:Firstly the FFP rules apply to last years accounts so in theory Derby and Middlesbrough can spend massively this year get promoted and pay a fine to the football league next year when they are in the Premier League (that's what Bournemouth did)
The basic rules are that a club cannot lose more than £6m in a season. An owner like Tan can fund the club but by no more than £6m per season whether its by loans or equity. I think VT could put extra money into the club provided ait was a gift. I'm not 100% certain on that however.
So whatever our turnover was (including the parachute payments) we obviously spent that and more than the permitted £6m hence the embargo. It appears that VT wrote off £13m of debt and this was supposed to have made us profitable for that period. However the FL did-not accept this and put an embargo on us.
Thanks for that, does me wanting Derby to fail to get promoted again this year make me a bad person
as it seems that their fire sale might have to be a big one.