ethanr » Thu Aug 23, 2012 12:37 am wrote:SouthCoastShankly » Wed Aug 22, 2012 2:57 pm wrote:ethanr » Wed Aug 22, 2012 10:43 pm wrote:Speaking of money tho, we now have Carroll's value added to the squad when it comes to FFP rules. FFP kicked in the following transfer window, so if we end up selling Carroll for £15 million, then that's £15 million more we have to break even.
The FIFA Fair Play rules only require break even accounts from 2017 onwards. Up to then the amount of debt posted by a club will slowly edge towards parity.
2011-2014 will allow a total of £40M loss across the period.
2014-2014 will allow a total of £26M loss across the period.
However, Uefa’s break-even calculation is not the same as a club’s financial accounts. Expenditure such as youth development, stadium infrastructure and community development does not count towards FFP. Depreciation on tangible fixed assets is also excluded.
There is room for clubs to manoeuvre in other areas. The entirety of a transfer fee does not automatically show up as an annual expense because clubs tend to amortise player acquisition costs over the length of their contracts. I.e. Spread the payments over multiple seasons.
If a club misses the financial targets they potentially will not be granted a UEFA licence and would not be able to participate in European competitions. There are some allowances, if a club does not meet the break-even rule but can prove their debt removal is on a positive trend then they possibly may be given leniency and granted a UEFA licence.
So we are allowed a £40 million loss from 11-14? But doesn't that disclude AC's fee? So technically if we were to sell him for 15, then we could essentially lose 55 from other sources. The fact we spent a lot last summer, and whatever we spend for the next few years could surely add up?
Yes exactly.
The trick here is to invest into areas that are not counted towards the FFPR. Infrastructure, youth development, etc