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      FFP Rule Change

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      Swab
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      FFP Rule Change
      Jul 01, 2019 02:17:50 pm
      A tweak to the Premier League Financial Fair Play rule comes into effect from midnight - and it's set to give all top flight clubs a major boost.

      The Short Team Cost Control rule was brought into play in 2013 and, ultimately, prevents clubs from using broadcast revenue to fund a reckless wage bill increase.

      If a club's overall wage bill is less than £67million then the rule does not apply to them.

      But club's with bigger wage bills - the vast majority of the Premier League - are only allowed to increase their total salary spend by £7m on the previous season - or £19m on their figure from 2012/13.

      Huge clubs are able to get around the rule if they can prove that their own revenues - not those obtained from broadcast rights - can fund a wage increase of more than £7m.

      But as of midnight on Monday clubs will no longer have to worry about this rule as it is being scrapped.

      Times Sport has reported that the Short Team Cost Control rule has been removed for the next three-year financial window, which begins on Tuesday.

      Clubs will of course still have to adhere to the existing Financial Fair Play rules.

      But they will now be able to splash out this summer without worrying about a short-term revenue uplift covering a rapid increase to their wage bill.
      https://www.mirror.co.uk/sport/football/news/premier-league-clubs-huge-transfer-17299775

      I wasn't aware of this, and it could be a mixed blessing, especially with the financially "corrupt" clubs finding ways around remaining rules as well.

      It may explain our lack of business so far, waiting for the rule to change because no doubt clubs knew it was coming, and it could lead to an explosion of wages if we try to keep up with citeh etc

      On the other hand, it may not affect our transfer business at all, and we are waiting to land the right players or promote from within.
      Time will tell, but I don't see this as being good for the financial sustainability of the game in general.
      Robby The Z
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      Re: FFP Rule Change
      Reply #1: Jul 01, 2019 03:17:04 pm
      A tweak to the Premier League Financial Fair Play rule comes into effect from midnight - and it's set to give all top flight clubs a major boost.

      The Short Team Cost Control rule was brought into play in 2013 and, ultimately, prevents clubs from using broadcast revenue to fund a reckless wage bill increase.

      If a club's overall wage bill is less than £67million then the rule does not apply to them.

      But club's with bigger wage bills - the vast majority of the Premier League - are only allowed to increase their total salary spend by £7m on the previous season - or £19m on their figure from 2012/13.

      Huge clubs are able to get around the rule if they can prove that their own revenues - not those obtained from broadcast rights - can fund a wage increase of more than £7m.

      But as of midnight on Monday clubs will no longer have to worry about this rule as it is being scrapped.

      Times Sport has reported that the Short Team Cost Control rule has been removed for the next three-year financial window, which begins on Tuesday.

      Clubs will of course still have to adhere to the existing Financial Fair Play rules.

      But they will now be able to splash out this summer without worrying about a short-term revenue uplift covering a rapid increase to their wage bill.
      https://www.mirror.co.uk/sport/football/news/premier-league-clubs-huge-transfer-17299775

      I wasn't aware of this, and it could be a mixed blessing, especially with the financially "corrupt" clubs finding ways around remaining rules as well.

      It may explain our lack of business so far, waiting for the rule to change because no doubt clubs knew it was coming, and it could lead to an explosion of wages if we try to keep up with citeh etc

      On the other hand, it may not affect our transfer business at all, and we are waiting to land the right players or promote from within.
      Time will tell, but I don't see this as being good for the financial sustainability of the game in general.

      I don't know. All money is fungible in the end. Broadcast revenue goes to club, moves from account to account and then Voila! "This money isn't broadcast revenue, and oh, we're signing Neymar!"

      Re this rule, how does waiting until July 1 to sign someone help circumvent it?
      clint_call01
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      Re: FFP Rule Change
      Reply #2: Jul 01, 2019 03:17:23 pm
      A tweak to the Premier League Financial Fair Play rule comes into effect from midnight - and it's set to give all top flight clubs a major boost.

      The Short Team Cost Control rule was brought into play in 2013 and, ultimately, prevents clubs from using broadcast revenue to fund a reckless wage bill increase.

      If a club's overall wage bill is less than £67million then the rule does not apply to them.

      But club's with bigger wage bills - the vast majority of the Premier League - are only allowed to increase their total salary spend by £7m on the previous season - or £19m on their figure from 2012/13.

      Huge clubs are able to get around the rule if they can prove that their own revenues - not those obtained from broadcast rights - can fund a wage increase of more than £7m.

      But as of midnight on Monday clubs will no longer have to worry about this rule as it is being scrapped.

      Times Sport has reported that the Short Team Cost Control rule has been removed for the next three-year financial window, which begins on Tuesday.

      Clubs will of course still have to adhere to the existing Financial Fair Play rules.

      But they will now be able to splash out this summer without worrying about a short-term revenue uplift covering a rapid increase to their wage bill.
      https://www.mirror.co.uk/sport/football/news/premier-league-clubs-huge-transfer-17299775

      I wasn't aware of this, and it could be a mixed blessing, especially with the financially "corrupt" clubs finding ways around remaining rules as well.

      It may explain our lack of business so far, waiting for the rule to change because no doubt clubs knew it was coming, and it could lead to an explosion of wages if we try to keep up with citeh etc

      On the other hand, it may not affect our transfer business at all, and we are waiting to land the right players or promote from within.
      Time will tell, but I don't see this as being good for the financial sustainability of the game in general.

      Please can someone summarises this in simple terms please?
      Swab
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      Re: FFP Rule Change
      Reply #3: Jul 01, 2019 04:10:18 pm
      I don't know. All money is fungible in the end. Broadcast revenue goes to club, moves from account to account and then Voila! "This money isn't broadcast revenue, and oh, we're signing Neymar!"

      Re this rule, how does waiting until July 1 to sign someone help circumvent it?

      Not really.
      Broadcast revenue and all other revenues have to be propery accounted for.
      The same theory was thrown around when FSG were being accused of taking money out of the club, and it doesn't hold water when you know how accounts for a "company" of this size are audited, not only by KPMG but also by FFP compliance accountants.

      I said nothing about 1 July beiing a time when it could be circumvented; that's simply when the rule is no longer applicable.

      I mentioned financially doped clubs finding other ways to keep financially doping.
      Swab
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      Re: FFP Rule Change
      Reply #4: Jul 01, 2019 04:11:30 pm
      Please can someone summarises this in simple terms please?

      It was kind of a wage cap, where clubs couldn't use TV money to fund big wages for players.
      It's now being removed.
      Robby The Z
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      Re: FFP Rule Change
      Reply #5: Jul 01, 2019 05:50:03 pm
      Not really.
      Broadcast revenue and all other revenues have to be propery accounted for.
      The same theory was thrown around when FSG were being accused of taking money out of the club, and it doesn't hold water when you know how accounts for a "company" of this size are audited, not only by KPMG but also by FFP compliance accountants.

      I said nothing about 1 July beiing a time when it could be circumvented; that's simply when the rule is no longer applicable.

      I mentioned financially doped clubs finding other ways to keep financially doping.

      Sorry Swab, I missed the important detail that the rule is being scrapped rather than just coming in, so now I see why you say it could be a mixed blessing.

       When I worked for the U.S. Congress money from all funds was, indeed, fungible. No "lockbox" was ever truly locked when the budget rolled around. But hey, maybe that is why the federal government is 20 trillion dollars in debt with unfunded liabilities (social security, Medicare, etc.) At least three times that   :)
      Swab
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      Re: FFP Rule Change
      Reply #6: Jul 01, 2019 06:03:23 pm
      Sorry Swab, I missed the important detail that the rule is being scrapped rather than just coming in, so now I see why you say it could be a mixed blessing.

       When I worked for the U.S. Congress money from all funds was, indeed, fungible. No "lockbox" was ever truly locked when the budget rolled around. But hey, maybe that is why the federal government is 20 trillion dollars in debt with unfunded liabilities (social security, Medicare, etc.) At least three times that   :)

      I understnd what you're saying, but things work a bit differently when a Government has the power to print their own money, and corruption is not only rife, it's expected (as in many countries)

      It's really pretty simple.
      UEFA know how much TV money every club gets, and from there on, it's simple to work out the percentage of other revenue that goes on the wage bill.
      JD
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      Re: FFP Rule Change
      Reply #7: Jul 02, 2019 09:44:55 am
      It was kind of a wage cap, where clubs couldn't use TV money to fund big wages for players.

      Confusing part to this is that the 'broadcast' money actually includes a large element to do with how well you do in the tournament.  Not as big a part from Premier League, but it certainly is for the Champions League. 
      Billy1
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      Re: FFP Rule Change
      Reply #8: Jul 02, 2019 10:45:45 am
      It was kind of a wage cap, where clubs couldn't use TV money to fund big wages for players.
      It's now being removed.

      So it looks like City win again-bas**rds.
      Swab
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      Re: FFP Rule Change
      Reply #9: Jul 02, 2019 12:11:53 pm
      Confusing part to this is that the 'broadcast' money actually includes a large element to do with how well you do in the tournament.  Not as big a part from Premier League, but it certainly is for the Champions League.

      I was thinkiing that this was a big part of why the rule was scrapped.
      I would be surprised if the big clubs (including us) hadn't lobbied for this change.

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