trublusince1982 243 Posted January 5, 2016 Share Posted January 5, 2016 Recently there has been a clamour from fans to see the club spend some cash (include myself in that) in the transfer market. With the well covered comments from King stating he expects us to spend x amount over 5 years causing a bit of a back lash it got me to wondering can we spend big even if we wanted to? If we expect to play in Europe in the next 3 seasons does FFP regulations not stop us from doing so? Or are we free of such concerns? From my limited knowledge teams are allowed to spend no more than 5 million euros more than they earn over the 3 year period. Allowance is made for a director covering the cost directly part of uefa rule..... From June 2015, UEFA updated its regulations (as it does from time to time for all regulations) to address some specific circumstances with the aim to encourage more sustainable investment while maintaining control on overspending. Situations addressed include clubs requiring business restructuring, clubs facing sudden economic shocks and clubs operating with severe market structural deficiencies in their operating region. For the first time the work of the CFCB is potentially expanded to include clubs not yet qualified for UEFA competitions but who anticipate and want to participate at some stage in the future. 3) Are clubs no longer allowed to have losses? To be exact, clubs can spend up to €5million more than they earn per assessment period (three years). However it can exceed this level to a certain limit, if it is entirely covered by a direct contribution/payment from the club owner(s) or a related party. This prevents the build-up of unsustainable debt. The limits are: • €45m for assessment periods 2013/14 and 2014/15 • €30m for assessment periods 2015/16, 2016/17 and 2017/18 In order to promote investment in stadiums, training facilities, youth development and women’s football (from 2015), all such costs are excluded from the break-even calculation. http://www.uefa.com/community/news/newsid=2064391.html so my questions to those with a better knowledge of these things is........ 1, if the 3 bears or king give us loans to shares to cover transfer costs in the next 2-3 years would it be deemed okay by Uefa? Is that free and clear? 2. Would our poor revenue streams from merchandise play a part in that assessment? 3. Would those poor revenue streams mainly merchandise bite us in the ass by limiting what we can spend? 4. Is there any monetary limit we could not exceed spending in a calender year? Every time transfers are discussed it ends up in either a king co argument or about not needing any players that cost >x amount. Can we please stay away from those areas and someone just explain if indeed FFP rules would need to be taken into account when we look to spend in the not so distant future. 0 Quote Link to post Share on other sites More sharing options...
True_Ger_1872 2 Posted January 6, 2016 Share Posted January 6, 2016 (edited) Its an interesting point. Whilst I don't know too much about it, I have looked around and in relation to question 1 in your post - I believe that for a club to escape sanctions (depending on what level of losses the club has) the owner may need to agree to inject equity in order to meet the FFP requirements. Whether this is straight equity or through a loan for shares arrangements - I am not sure of any stance UEFA would have on these that would prove to be over dissimilar. Any digging I did was providing details on the EPL and EFL requirements and I believe their rules contain a lot of specific regarding club spend - most of these rules are derived from the UEFA FFP rules. I wonder how much detail (if any) is provided in the SPFL rules?? Update - After skimming through the SPFL rules, there is nothing specific that the SPFL have imposed on member clubs that lie outwith the remit of UEFA FFP rules. The only requirement relates to ensuring that clubs must meet any UEFA Regulation requirements for entering into UEFA competitions. It seems the EPL and EFL have imposed rules which aren't quite as stringent as the UEFA FFP to try and ensure they are looking after their product and member clubs. In terms of the merchandise agreement - I have to say I never really considered the effect it would have with us regarding FFP. It would appear this could well be yet another detrimental affect of the Sports Direct deal. Edited January 6, 2016 by True_Ger_1872 Additional Info 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,151 Posted January 6, 2016 Share Posted January 6, 2016 Yes, it's this kind of modern nuance that isn't always appreciated by some fans. I won't pretend to know the detail myself but it's definitely a factor and as much as rules can be navigated around, the EBT stuff shows how that can be more of a problem that actually just playing straight. 0 Quote Link to post Share on other sites More sharing options...
pete 2,499 Posted January 6, 2016 Share Posted January 6, 2016 FC Twente were almost wrapped up because they broke the rules. FC Twente banned from Europe for three years over transfers FC Twente have been banned from European competition for three years by the Royal Netherlands Football Association. The governing body said it had been "deliberately misled" by the club about a deal to sell player transfer fee rights to an outside investor. FC Twente says it will not appeal. Fifa has banned third-party player ownership as a threat to the game's integrity because investors can inflate transfer fees to make a profit. The Dutch FA says the punishment, including a 45,250 euros (£34,000) fine, follows Twente's failure to reveal full details of a third-party ownership contract with Malta-based Doyen Sports Investments. The Enschede-based club won their only Dutch League title under Steve McClaren, now the Newcastle boss, in 2009-10 but are currently third from bottom in the Dutch Eredivisie. FC Twente said that the sanctions would "hit hard at the heart of our club". Twente's professional licence will be revoked if they fail to fully cooperate with an independent investigation into the club's structure, added the Dutch FA. 0 Quote Link to post Share on other sites More sharing options...
trublusince1982 243 Posted January 6, 2016 Author Share Posted January 6, 2016 I think its important the club discuss these things with the fans. Information is not only power it also can bring understanding. I had hoped myself to see us spend large amounts in the next two seasons and to be honest would be disappointed if we don't. If FFP does play a role and limits our spending then its imperative we the fans understand the limitations that the club and especially the board will need to operate under. 0 Quote Link to post Share on other sites More sharing options...
ascender 352 Posted January 6, 2016 Share Posted January 6, 2016 I thought FFP was a bit of a busted flush now? 0 Quote Link to post Share on other sites More sharing options...
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