Premier League Financial Regulations

[DJ_Markstar]

Seriously, why does anyone care if the clubs are living "within their means".

That isn't our concern, it is theirs. Any limitation should be a flat limitation, not scaled based on what you are already paying - this whole idea is a nonsense designed to keep the top clubs at the top. Hate it. Why can't everyone see we're all being scammed?

 

[Anzac]

<a class="postlink" href="http://www.football365.com/f365-features/8496813/A-Cynic-s-Guide-To-Prem-FFP-Regulations" onclick="window.open(this.href);return false;">http://www.football365.com/f365-feature ... egulations</a>

 

[evoh_1]

http://www.football365.com/f365-features/8496813/A-Cynic-s-Guide-To-Prem-FFP-Regulations" onclick="window.open(this.href);return false;

As stated these rule won't prevent another leeds or portsmouth situation as the issue isn't how much you are losing but how much you are losing each year relative to your revenue and how long that can be sustained for.

All we will see from this is owners pocketing the cash from the TV, well done stan and ivan amongst others, and fans pushed for more cash as those revenues are deemed fair game for blowing on players wages. At the end of the day the wage cap is totally * and offers no sense at all apart from keeping extra cash away from all players, the only beneficary will be the club owners.

Why couldn't they just have a regulation system like germany where every club has to submit accounts and ffinancial plans and provisions for the coming year each year to the league for a licence?

everything the EPL does seems to harm actual real fans who are going to games and are paying through the teeth, for the benefit of the wider audience and the clubs themselves. But I suppose that is how everything goes when you take away any actual power from the people who make up the true fabric of the clubs.

 

[el57]

will be interesting to see the accounting specifics on this.

if a player signs a deal that pays him £70k per year for 5 years, and its £70k per year every year, that is easy to account for and calculate. however if the deal has escalator clauses, wherein the player makes £50k, 60k, 70k, 80k, and 90k over the life of the 5 years, will you have to count the average of the 5 year deal (£70k) or do you only count the current year?

for major league baseball's accounting for luxury tax purposes (its not a salary cap, but you get taxed for any money you spend over $178m per year), its the average annual value.

hopefully the wage restrictions make us think long and hard about our structure. having players on the wage bill you cant sell because they make too much could really hurt us. hopefully we see a bigger range now.

Presumably they would require some rate to take the present value of. Since footballer's wages have been rising way beyond typical interest or inflation rates, I'm not sure what they'd use, but I'm no accountant.

 

[A_G]

 

[LookingForEric]

Forest I can see, they were slinging money everywhere recently.

 

[CountChocula]

These FFP rules are complete BS. PL comes off as a bully going after small players, but they're afraid to do anything about the elephant in the room (City, Newcastle, etc.).

 

[A_G]

These FFP rules are complete BS. PL comes off as a bully going after small players, but they're afraid to do anything about the elephant in the room (City, Newcastle, etc.).

City are accused of falsifying their accounts, not breaching FFP like Everton and Forest.

 

[LookingForEric]

These FFP rules are complete BS. PL comes off as a bully going after small players, but they're afraid to do anything about the elephant in the room (City, Newcastle, etc.).

They know the rules. You can’t spent a certain amount over your revenue which is completely fair. They clearly thought they’d be able to make more sales/be higher up in the league by now.

City have 700M in revenue (wether legit or not) and as of now they can spend a lot of money. Newcastle are close to being caught out as well.

 

[Yousif Arsenal]

So is Everton gonna got hit with another points deduction? Or transfer ban? Really messy situation

 

[teamsoutheast]

Is the Premier League financial bubble about to burst?

 

[LookingForEric]

Is the Premier League financial bubble about to burst?

The financial bubble across the world is about to burst which will ultimately lead to the PL financial bubble bursting yes.

 

[teamsoutheast]

The financial bubble across the world is about to burst which will ultimately lead to the PL financial bubble bursting yes.

agreed... I think it's gonna be biblical....

 

[SuperGoon]

The financial bubble across the world is about to burst which will ultimately lead to the PL financial bubble bursting yes.

Thank the lawd. Do you have an estimated date for this?

 

[LookingForEric]

Thank the lawd. Do you have an estimated date for this?

Nope, some time this year. Commercial real estate in America is about to go boom and banks are over leveraged. This will spill over into Europe and obviously it could become a big issue for some of the American owners in the PL.

 

[Vinci]

Nope, some time this year. Commercial real estate in America is about to go boom and banks are over leveraged. This will spill over into Europe and obviously it could become a big issue for some of the American owners in the PL.

How much are you willing to bet on this?

 

[db10_therza]

How much are you willing to bet on this?

He’s not entirely wrong - commercial real estate in the US is a crapshow and it’s causing knock on effects as far afield as japan (look up Aozora Bank).

He’s wrong about the meltdown though. Banks are not overleveraged, and contagion is contained. Contrary to popular opinion some lessons were learnt from the GFC… you can get small banks blowing up (eg Silicon Valley, albeit nothing to do with commercial real estate) but the damage is contained. New York community bank is creaking under the weight of its commercial property exposure but there is very little spillover to the big banks.

Can’t say the same about Europe though. Europeans have a history of talking a good game but being worse than Americans under the sheets. The issue has just started manifesting here in anger, investors are currently pulling over a billion euros a month from commercial real estate funds and eventually they’ll be forced to liquidate some assets in a fire sale. We’ll find out then which banks have exposures that they’re not supposed to. European banks aren’t systemically relevant the way US banks are though.

Ultimately we dealt with Covid and this is minor compared to that. The system be fine and get back to subjugating all of you in no time.

And if all else fails there’s bitcoin anyway

 

[LookingForEric]

How much are you willing to bet on this?

I mean no bets needed it’s already happening. Wether or not it gets really bad is down to the big wigs in charge.

 

[LookingForEric]

He’s not entirely wrong - commercial real estate in the US is a crapshow and it’s causing knock on effects as far afield as japan (look up Aozora Bank).

He’s wrong about the meltdown though. Banks are not overleveraged, and contagion is contained. Contrary to popular opinion some lessons were learnt from the GFC… you can get small banks blowing up (eg Silicon Valley, albeit nothing to do with commercial real estate) but the damage is contained. New York community bank is creaking under the weight of its commercial property exposure but there is very little spillover to the big banks.

Can’t say the same about Europe though. Europeans have a history of talking a good game but being worse than Americans under the sheets. The issue has just started manifesting here in anger, investors are currently pulling over a billion euros a month from commercial real estate funds and eventually they’ll be forced to liquidate some assets in a fire sale. We’ll find out then which banks have exposures that they’re not supposed to. European banks aren’t systemically relevant the way US banks are though.

Ultimately we dealt with Covid and this is minor compared to that. The system be fine and get back to subjugating all of you in no time.

And if all else fails there’s bitcoin anyway

I think you could be correct. But I also think there’s going to be multiple different things that happen at the same time to cause this.

The real estate collapse will happen, and some banks will go, mainly smaller ones like you say. But then you have the fed in the states cutting interest rates and historically when they start cutting things start getting real ugly.

The impending recession later this year will definitely spill over into our football clubs in some form.

The world isn’t ending, but this will probably pave the way for digital currency and such.

 

[db10_therza]

The real estate collapse will happen, and some banks will go, mainly smaller ones like you say. But then you have the fed in the states cutting interest rates and historically when they start cutting things start getting real ugly.

This is just wrong I’m sorry.

Historically they usually cut after things have gone wrong (gfc, Covid) to fix them. Lowering rates does the opposite of harming the economy, the risk is it overheats it.

A huge part of why the real estate sector is in trouble is because rates are too high. Lowering them will be a life line.

As for the rest of it, that’s opinion I guess and you’re entitled to it. Crazier things have happened anyway.