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FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 6:48 am

The attempts by UEFA to try and drag football away from the 'spend and be damned' routine of the last 20 years is commendable even if it only came about because Platini saw the clubs from his home nation just falling further and further behind.

I have been appalled by the money spent over the years with players' wages becoming sickening and clubs buying championships and tournaments. However, unless the FIFA fair play rules (FFPR) are an 'across the board' inception I can only see the gulf between the Premiership and the Championship widening.

Before any income is calculated for the coming season the three relegated Premiership teams will have £16million in income from parachute payments. Now in the past should a club want to break into the group of teams that can gain promotion their owners could choose to match the spending of the Premiership relegated teams.

From next season this will not be possible as owners will be restricted to a £4million debt and a £6million investment. That puts you immediately at a £6million disadvantage. In coming years this will increase with debts being held at £2million and investment at £3million, that's an £11million deficit.

Whilst the Premiership are outside of the FFPR they can continue to pay massive wages and have those wages subsidised should they get relegated.

I have heard of attempts to avoid FFPR with investment described as sponsorship but it is still not certain as to whether the Football League will clamp down on this. There are also many questions to be answered, like, is the issuing of shares seen as investment and disallowed or is it seen as company growth (or shares for debt).

Was this the last season to get into the Promised Land or into the group of clubs that live off parachute payments? It looks like it just got harder. Financial stability is important but would we be happy for our league position to be judged by income? If so we would forever be a Championship team and although I think this league is great I don't think many fans would be happy to stay in the Championship.

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 8:14 am

You are barking up the wrong tree mate. Been trying to drum this into the forum for the past few days with no avail, they just see to ignore it and carry on talking about wild figures Malky will be given and speculating how much he will be given and what he will do with it.

FIFAFPR is a good idea and will work, but for a club like us -living off what we earn is impossible due to the fact we ALREADY shell out more per month than we earn in club costs ad debt repayments, so we are in a bit of a hole. As for you saying league positions are determined on income - thats not the case now so dont see why it would be. Leicester have spent millions and are mid table and for all our irratic spending we have no gone up either where as Swansea and Blackpool did it on a shoestring. As suggested, it levels the playingfield and the better team and manager will go up rather than teams splashing out on wages to get mercinaries in like they have done in previous years, us included.

The reality is the Malaysians have put in DOUBLE this season what they will be permitted to next. They put in £1.2 million per month to cover costs and keep us above water. WE will have to find an extra revenue stream next year to fud 600k a month short fall as the Malaysians cant ''help us out'' - I put that in inverted comas as it isnt really helping us out - its extending our debt. They are paying our shortfall and charging it to themselves.... +7% of course. So there will be NO money at all to spend, unless we sell players and recieve money over the £6 million threshold, then anything over that should be available to strengthen. As you say, next year their investment will be cut another £2 million and then the following season by another £4 million.... All of which we will have to generate ourseves to bridge the shortfall.

So in summary. This will hit us hard and could be very damaging to any hopes of promotion for a very long time due to the sheer amount of money we will need to find before strengthening. But if you have faith in the manager and his ability to assemble a squad for little money like Swansea and Blackpool - then theres nothing to worry about. They are just stopping the ridiculous, i.e the Bellamy signing, the Yakubu signing etc etc

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 8:29 am

Oh and as for the suggestios of investment disguised as sponsorship etc.

That doesnt really apply to us. The Malaysians want anything they give us legally bound to be repaid to them with that all important 7% interest making them a nice healthy profit. If they do what is being suggested they wont get any of that ivestment back at all, theres no way on earth many owners will be doing that.

Mike Ashey would and has done it to Newcastle, as he is a fan. The group that own Man City have done it - coz they are nuts. Some others have given their clubs interest free loans. But most owers iit for a profit charge high interest loans just as the Malaysians do to us, theres no way they will be gifting us any cash.

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 8:42 am

There are ways around it but its not for me to comment on an internet board, but I am sure the malaysians being shrewd business men have already worked it out, and they did vote yes for it, I dont know where everyone gets this loan at 7% they will just convert the monies owed into shares and therefore own the club outright no debt to them :thumbup:

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 8:51 am

Igovernor wrote:There are ways around it but its not for me to comment on an internet board, but I am sure the malaysians being shrewd business men have already worked it out, and they did vote yes for it, I dont know where everyone gets this loan at 7% they will just convert the monies owed into shares and therefore own the club outright no debt to them :thumbup:


There is no legal and realistic way around it, if there was - id know. Also the converting the debt into shares isnt as simple as you are suggesting, not by a long chalk.

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 8:54 am

What can I say ? there are at least two perfectly legal ways to circumvent this problem, without saying what they, being as you say you know there are not, best I say nothing :thumbup:

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 8:58 am

Igovernor wrote:What can I say ? there are at least two perfectly legal ways to circumvent this problem, without saying what they, being as you say you know there are not, best I say nothing :thumbup:


There clearly isnt though. I guess what you may think are revolutionary ideas, to the rest of us are no-goers that have already been considered. On the board that issued the rules of FFPR they consulted with the best business minds the world has to offer (no I wasnt chosen). Id be very suprised if 'Igoverner' off AAMB figured a workaround :D

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 9:28 am

CantonMagic wrote:You are barking up the wrong tree mate.......


Just thought it was worth debating amongst Cardiff City fans instead of being brought up as an attempted troll by an obvious Jack. ;)

Re: FIFA Fair Play Rules vs Parachute Payments

Tue May 08, 2012 9:29 am

Wayne S wrote:
CantonMagic wrote:You are barking up the wrong tree mate.......


Just thought it was worth debating amongst Cardiff City fans instead of being brought up as an attempted troll by an obvious Jack. ;)


You said exactly the same as me.