[Archived] Football League Financial Fair Play Rules - Effect on Rovers

[Kamy100]

This morning's LT has an interview with a football finance expert. He says that the Football League Financial Fair Play rules are far more stringent than the ones imposed by UEFA.

Under the rules that are due to come into force next season, if we got relegated to League 1 then only 60% of our turnover can be used to finance wages. So even if the owners wanted to bankroll the wages they couldn't. In effect according to the finance expert that would mean that our current squad would be unsustainable.

I am hoping to talk to someone from the Football League about the FFP regulations in the next few days.

Here are the FFP rules in a bit more detail:

http://www.football-league.co.uk/page/FLExplainedDetail/0,,10794~2748246,00.html

[yoda]

This morning's LT has an interview with a football finance expert. He says that the Football League Financial Fair Play rules are far more stringent than the ones imposed by UEFA.

Under the rules that are due to come into force next season, if we got relegated to League 1 then only 60% of our turnover can be used to finance wages. So even if the owners wanted to bankroll the wages they couldn't. In effect according to the finance expert that would mean that our current squad would be unsustainable.

I am hoping to talk to someone from the Football League about the FFP regulations in the next few days.

Here are the FFP rules in a bit more detail:

http://www.football-league.co.uk/page/FLExplainedDetail/0,,10794~2748246,00.html

Just maybe you have found out what they are up too!

"It's not our fault we had to sell everyone, the rules made us do it"

[Craigman]

What would happen if we just couldn't offload the staff ? If no one would buy them, surely we couldn't be punished.

[yoda]

What would happen if we just couldn't offload the staff ? If no one would buy them, surely we couldn't be punished.

Administration?

[davulsukur]

So, basically if we end up in league 1 we are pretty much not coming back?

[Rover_Shaun]

How can 60% be fair play? How are a Stanley supposed to compete with a city club like Sheffield United or Bradford other than one day hope a rich supporter bankrolls them?

Football is dying

[Stuart]

How can 60% be fair play? How are a Stanley supposed to compete with a city club like Sheffield United or Bradford other than one day hope a rich supporter bankrolls them?

Football is dying

Or football is becoming a meritocracy.

We don't like it because we have a small (large compared to the catchment area) fanbase. If we were a large fanbase and were watching Barnsley in the top flight because of a billionaire fan's deep pockets, would we smile and wish them well or feel shortchanged and jealous?

Because that's one of the main reasons many fans of other clubs are glad we are dropping like stones.

The parachute payments are supposed to enable clubs to adapt. Unless a club were to borrow against and gamble it all in an attempt to get back to the PL at the first attempt.

The FL are trying to avoid clubs relegated from the higher division become yo-yo clubs year in, year out at the expense of a competitive league where others miss out every year because they can't afford to compete. Fans are going to have to grow their fanbases - not an easy task.

Venkys couldn't have picked a worse time to buy the club. Or maybe the Walker Trust couldn't have picked a better time to get the hell out.

My only query is the potential loophole of sponsorship. What's to stop Venkys sponsoring the shirts for £20m per season? Apart from being clueless and skint?

[bypass06]

Relegation would leave Blackburn Rovers 'between a rock and a hard place' says football finance expert.

http://www.lancashiretelegraph.co.uk/sport/football/blackburn_rovers/news/10351443.Relegation_would_leave_Blackburn_Rovers__between_a_rock_and_a_hard_place__says_football_finance_expert/

[McClarky]

I suspect the first job would be to sell anyone who is worth anything as you can use transfer fees towards your turnover I think. This would raise about £3.49 then. Not sure what we could do after that as players are under no obligation to leave and noone else would pay the kind of wages we are paying for the likes of Murphy and Etuhu (remember him?). We are stuffed.

[Kamy100]

Also clubs will know that we have to get these players off the books, so will wait until deadline day and make low offers for likes of Rhodes etc and we would be under huge pressure to accept these bids or face the consequences.

[neophox]

Will we get the £16m in parachute payment for relegation from Premier League in league one?

If going down I can only see these players staying:

Markus Olsson

Josh King

Grant Hanley

Jason Lowe

David Dunn

Fabio Nunes

Jake Kean

Josh Morris

But we have some decent players in reserves:

as

Hugo Fernandez

Tim Payne

Jack O Connell

etc...

the rest will probably leave....

[rovers11]

Im not convinced by the FFP rules tbh. It's just an escape clause for owners who don't want to invest in their club. If an owner does want to invest, what would stop them pumping in money via sponsorship? For instance, what if venkys sponsored our shirts next season and paid £10m for doing so. That would count as turnover rather than loss

[whatdial]

How can 60% be fair play? How are a Stanley supposed to compete with a city club like Sheffield United or Bradford other than one day hope a rich supporter bankrolls them?

Football is dying

Why is this a bad thing? At least it means clubs will act within their means. No club should overspend on wages. FFP can only be seen as a positive thing.

[Parsonblue]

How can 60% be fair play? How are a Stanley supposed to compete with a city club like Sheffield United or Bradford other than one day hope a rich supporter bankrolls them?

Football is dying

Stanley don't compete that is the problem. I catch Stanley whenever I can if the Rovers aren't playing and the Financial Fair Play setup does nothing to help them. The limit on wages means that they can't attract the quality of players they would need to compete at the top end of the division. The result is that crowds drop because results and performances aren't always the best and then the amount they can spend on wages drops again. In theory it was meant to help keep clubs from overspending but the reality, even in League Two, is that the clubs with bigger gates and sponsorship are able to attract the better players with better wages whilst clubs like Stanley struggle to survive.

[JAL]

This morning's LT has an interview with a football finance expert. He says that the Football League Financial Fair Play rules are far more stringent than the ones imposed by UEFA.

Under the rules that are due to come into force next season, if we got relegated to League 1 then only 60% of our turnover can be used to finance wages. So even if the owners wanted to bankroll the wages they couldn't. In effect according to the finance expert that would mean that our current squad would be unsustainable.

I am hoping to talk to someone from the Football League about the FFP regulations in the next few days.

Here are the FFP rules in a bit more detail:

http://www.football-league.co.uk/page/FLExplainedDetail/0,,10794~2748246,00.html

Sounds like even more evidence to take the club down and pocket those parachute payments.

Oh boy have Blackburn Rovers been done over.

[Rover_Shaun]

Why is this a bad thing? At least it means clubs will act within their means. No club should overspend on wages. FFP can only be seen as a positive thing.

Poppycock

[T4E]

Ewood Park will soon be Venkys Stadium. Funding sorted.

[Craigman]

Or the Probiz stadium ?

[ABBEY]

And what will fans do come Saturday ... Yep that's right sit on there hands and tell anyone who slags venkys for what they've done/doing to F off . Fans don't care and venkys don't care.

[den]

It sounds like it's basically an extension of the maximum wage being abolished. It'll have the same effect.

[rovers11]

Seriously, the FFP is smoke and mirrors. If owners want to put money into their club then they can still do so. It's just a case of being creative and increasing 'income'. Don't be surprised to see clubs of owners who want to invest suddenly having a massive increase in turnover through sponsorship. In reality, that 'sponsorship' money will just be money pumped in by owners.

FFP is essentially just re-arranging numbers on a balance sheet to create the illusion you are complying with the rules.

[K-Hod]

And what will fans do come Saturday ... Yep that's right sit on there hands and tell anyone who slags venkys for what they've done/doing to F off . Fans don't care and venkys don't care.

Relevance?

[Stuart]

Seriously, the FFP is smoke and mirrors. If owners want to put money into their club then they can still do so. It's just a case of being creative and increasing 'income'. Don't be surprised to see clubs of owners who want to invest suddenly having a massive increase in turnover through sponsorship. In reality, that 'sponsorship' money will just be money pumped in by owners.

FFP is essentially just re-arranging numbers on a balance sheet to create the illusion you are complying with the rules.

The only difference I can see is that owners wouldn't be able to "loan" money to the club. It would surely have to be a sponsorship or a no strings donation.

I'm genuinely interested in how this could work.

Not that a Venkys-owned Blackburn Rovers would ever benefit from it.

[rovers11]

The only difference I can see is that owners wouldn't be able to "loan" money to the club. It would surely have to be a sponsorship or a no strings donation.

I'm genuinely interested in how this could work.

Not that a Venkys-owned Blackburn Rovers would ever benefit from it.

That's right. It would have to be a donation to the club. That is far better than owners mortgaging the club via expensive loans that could cripple a club a la Pompey.

I don't think the FFP rules are meant to stop owners coming in and pumping money into the club. Actually, I think they are there to encourage owners pumping their own money in via sponsorship or 'donations'. What the FFP rules are there to protect is owners 'loaning' money to clubs and then calling that loan back which the club cannot afford.

For example, if Abramovich called back his loan that he has given to Chelsea over the years then the club would not be able to pay that back. If, in fact, Abramobich has just donated the money to chelsea and doesn't want it back then that's fine. There are, however, no rules which currently prevent scenario one from happening. The FFP does prevent scenario one from happening.

[den]

http://www.lancashiretelegraph.co.uk/sport/football/blackburn_rovers/news/10351443.Relegation_would_leave_Blackburn_Rovers__between_a_rock_and_a_hard_place__says_football_finance_expert/