Financial fair play and our spending

Liverpool Football Club - General Discussion

Postby Steve Crooks » Wed May 18, 2011 5:15 pm

Just a thought.. Assuming we don't make the Europa league for next season, does that mean we can spend what the heck we like this close season and Mancs, Chelski, Arsenal and the others won't be able to because of the financial fair play rules?
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Postby Greavesie » Wed May 18, 2011 5:22 pm

what were the penalties for not being in line with FFP? was it just exclusion for Europe?

Let's say if City qualify for Europe but they breach FFP rules and can't enter Europe - who gets their place?

I know you asked a different question Steve but there's a few things worth considering in relation to FFP
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Postby Steve Crooks » Wed May 18, 2011 5:56 pm

I was just reading on UEFA's website about the new rules and I have to say, it is pretty vague. I have no idea whether clubs will face any penalties or not or just have a good telling off!
http://www.uefa.com/Multime....OAD.pdf
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Postby Raoul » Wed May 18, 2011 6:40 pm

You waded through all 92 pages? Kudos. Tell us who are too lazy and/or busy, what does it actually say?! :laugh:

EDIT: actually ONLY 91 pages. And lots of talk about how they'll make exceptions...
Last edited by Raoul on Wed May 18, 2011 6:47 pm, edited 1 time in total.
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Postby SouthCoastShankly » Wed May 18, 2011 8:40 pm

Greavesie wrote:what were the penalties for not being in line with FFP? was it just exclusion for Europe?

Let's say if City qualify for Europe but they breach FFP rules and can't enter Europe - who gets their place?

I know you asked a different question Steve but there's a few things worth considering in relation to FFP

I'll try and comment more in depth tomorrow.

Basically FFPR don't come in to effect until 2015, but the accounts are calculated three seasons in advance. It is only in 2015 that no losses at all are allowed (break even rule). Prior to 2015 losses can be posted but are limited (need to check exact value but I think it is no more than £85m losses over three seasons).

FFPR only apply to teams applying for a UEFA licence. Not sure whether we apply for a UEFA licence regardless of participation in an European competition.
Last edited by SouthCoastShankly on Wed May 18, 2011 8:42 pm, edited 1 time in total.
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Postby Steve Crooks » Wed May 18, 2011 8:48 pm

SouthCoastShankly wrote:
Greavesie wrote:what were the penalties for not being in line with FFP? was it just exclusion for Europe?

Let's say if City qualify for Europe but they breach FFP rules and can't enter Europe - who gets their place?

I know you asked a different question Steve but there's a few things worth considering in relation to FFP

I'll try and comment more in depth tomorrow.

Basically FFPR don't come in to effect until 2015, but the accounts are calculated three seasons in advance. It is only in 2015 that no losses at all are allowed (break even rule). Prior to 2015 losses can be posted but are limited (need to check exact value but I think it is no more than £85m losses over three seasons).

FFPR only apply to teams applying for a UEFA licence. Not sure whether we apply for a UEFA licence regardless of participation in an European competition.

Thanks for that.. Hmmm.. I think its fair to say, its a grey area.
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Postby Benny The Noon » Wed May 18, 2011 11:28 pm

The Fair play rule applies to every club in every league and is nor dependant on whether a team is in Europe or not . It will start from next summer and for the next three years the club can only operate on a loss of 40 million Euro's maximum in a three year period when it comes to money earnt and money spent on players . Players under the age of 18 do not count in the figures .

Also owners are not allowed to just pump 100's of millions into the club without receiving something in return . They also not allowed to self sponsor the club nor are they allowed to personally purchase players and then just give them to the club .
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Postby Greavesie » Wed May 18, 2011 11:31 pm

whats the punishment tho?

and what about my question about getting kicked out of Europe, who gets their place?
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Postby ethanr » Thu May 19, 2011 2:56 am

I think nothing comes into play for another few years.  The time period starts now, but it's over a 3 or 5 year period or something.  So you have to be profitable over 5 years, so if you overspend like mad now, you will be ok for 4 years, but by the time that fifth year comes you will have needed to make a profit overall from those 5 years.

That was my understanding of it, so don't take my word for it.
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Postby Reg » Thu May 19, 2011 5:52 am

FIFA and UEFA have always proved gutless when faced with a crisis and/or offenders so why does anyone think different now?

Corruption, goal line technology, cr@p decisions... sending offs.... the list is endless.
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Postby Benny The Noon » Thu May 19, 2011 8:26 am

Greavesie wrote:whats the punishment tho?

and what about my question about getting kicked out of Europe, who gets their place?

Severe cases of teams breaking the rule will mean a suspension from UEFA competitions .
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Postby SouthCoastShankly » Thu May 19, 2011 10:43 am

Benny The Noon wrote:The Fair play rule applies to every club in every league and is nor dependant on whether a team is in Europe or not . It will start from next summer and for the next three years the club can only operate on a loss of 40 million Euro's maximum in a three year period when it comes to money earnt and money spent on players . Players under the age of 18 do not count in the figures .

Also owners are not allowed to just pump 100's of millions into the club without receiving something in return . They also not allowed to self sponsor the club nor are they allowed to personally purchase players and then just give them to the club .

I'm surprised Benny that you are so uninformed.


Fundamantals
FFPR only apply to UEFA club competitions not domestic. Hence why these rules only apply to those teams applying for a UEFA club licence. The FA may well look to impose similar rules for all teams applying for an FA club licence but at present they have not done so.

The reason the FFPRs are being mentioned now even though they won't bite until 2013-14 is that UEFA will use the previous two seasons accounts to determine whether a club has adhered to the rules.

Complete break even account requirements do not come into effect until season 2018-19. Prior to this there is a gradual tightening of the rules each season regarding how much loss can be posted.

I suggest reading this article - http://tomkinstimes.com/2010....pool-fc
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Postby stmichael » Thu May 19, 2011 2:36 pm

the figures today are damning regarding the debt in the premier league. total debt is 2.5 billion and the even more frightening thing is 68% of turnover goes on wages.
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Postby neil » Thu May 19, 2011 3:21 pm

SouthCoastShankly wrote:
Benny The Noon wrote:The Fair play rule applies to every club in every league and is nor dependant on whether a team is in Europe or not . It will start from next summer and for the next three years the club can only operate on a loss of 40 million Euro's maximum in a three year period when it comes to money earnt and money spent on players . Players under the age of 18 do not count in the figures .

Also owners are not allowed to just pump 100's of millions into the club without receiving something in return . They also not allowed to self sponsor the club nor are they allowed to personally purchase players and then just give them to the club .

I'm surprised Benny that you are so uninformed.


Fundamantals
FFPR only apply to UEFA club competitions not domestic. Hence why these rules only apply to those teams applying for a UEFA club licence. The FA may well look to impose similar rules for all teams applying for an FA club licence but at present they have not done so.

The reason the FFPRs are being mentioned now even though they won't bite until 2013-14 is that UEFA will use the previous two seasons accounts to determine whether a club has adhered to the rules.

Complete break even account requirements do not come into effect until season 2018-19. Prior to this there is a gradual tightening of the rules each season regarding how much loss can be posted.

I suggest reading this article - http://tomkinstimes.com/2010....pool-fc

pwned
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Postby Benny The Noon » Thu May 19, 2011 5:24 pm

SouthCoastShankly wrote:
Benny The Noon wrote:The Fair play rule applies to every club in every league and is nor dependant on whether a team is in Europe or not . It will start from next summer and for the next three years the club can only operate on a loss of 40 million Euro's maximum in a three year period when it comes to money earnt and money spent on players . Players under the age of 18 do not count in the figures .

Also owners are not allowed to just pump 100's of millions into the club without receiving something in return . They also not allowed to self sponsor the club nor are they allowed to personally purchase players and then just give them to the club .

I'm surprised Benny that you are so uninformed.


Fundamantals
FFPR only apply to UEFA club competitions not domestic. Hence why these rules only apply to those teams applying for a UEFA club licence. The FA may well look to impose similar rules for all teams applying for an FA club licence but at present they have not done so.

The reason the FFPRs are being mentioned now even though they won't bite until 2013-14 is that UEFA will use the previous two seasons accounts to determine whether a club has adhered to the rules.

Complete break even account requirements do not come into effect until season 2018-19. Prior to this there is a gradual tightening of the rules each season regarding how much loss can be posted.

I suggest reading this article - http://tomkinstimes.com/2010....pool-fc

Seems the guy on Skysports is wrong then as they had a special report on it couple weeks back .

Cheers for posting that link .
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