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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Financial Fair Play Rules Will Soon Bite Some Big Clubs

9:08 am, Sunday, March 9th, 2014 by Dr. Ed Harrison · 14 Comments

In order to play in European competition,  clubs have to meet the Financial Fair Play Rules (FFP), and there was news very recently that of the 237 clubs who took part in this season’s Champions League and Europa League competitions, 76 of them are being investigated.

Michel Platini     987

Michel Platini – UEFA President should be FFP rules bite

If they do not comply with FFP rules the clubs will face serious financial sanctions and – if UEFA President is true to his word – disqualification from next season’s competitions.

The strange thing is the UEFA are only investigating clubs who compete this season, so clubs like Liverpool, who didn’t compete this season but will next season, will not be investigated until next year.

The way it should be is that clubs who qualify, should have to pass the FFP rules before they compete in Europe, otherwise they are disqualified and miss out on the revenues of competing in Europe – and they are also fined.

There are some English clubs who are likely to have trouble with FFP.

Liverpool

Have just announced losses in the last financial year of £49.8M, and they also  lost £54.7M in the previous financial year – so there are concerns about whether they will qualify and meet the criteria of FFP – but it seems it will be after European competition next year – which is silly.

Manchester City

Have lost £149M over the last two financial years – in 2011/12 they lost £98.7M, and in 2012/13 they lost £51.6M – and they have that that dodgy £40M per year commercial deal over ten years with Etihad Airlines, which cannot possibly meet the fair value of commercial deals.

Those seem to be the two English clubs who are in danger and probably in the 76 being investigated – but other English clubs are in better shape.

Arsenal

Made £6.7M profit in the last financial year and £36.6M profit in the previous year – and they are in excellent shape and the best run club in England.

Manchester United

Lost £8.8M in the last financial year and £4.7M loss in the previous year, and they should be in decent shape, but next year could be challenging, as they will not have the£40M they usually get from the Champions League.

Chelsea

Lost £49.4M last year and had £1.4M profit in the previous year – and the London club have made a point of saying they are not one of the 76 clubs being investigated by UEFA.

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In France it’s very likely that PSG are being investigated, if only because of their recent huge commercial deals, coming from companies in Abu Dhabi, since they were bought almost three years ago by the Qatar Investment Authority, a group of Qatar based investors.

They have increased their commercial income by around £140M in just two years, which at the very least looks very suspicious.

Newcastle are in great shape financially, having a profit of £9.9M in the last financial year and making a smaller profit in the previous year –   but we cannot qualify for Europe, so there’s a catch 22.

Comments welcome.



Tags: Financial Fair Play · Financials · Newcastle News · Transfer News and Rumours



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14 responses so far ↓

  • 1 toonarmydownsouth // Mar 9, 2014 at 9:11 AM

    We can qualify for Europe Ed, it’s just whether or not we want too

  • 2 Black and White with an army lol // Mar 9, 2014 at 9:12 AM

    wake up and smell the coffee guys Remy is NOT going to sign for us, his wages are far above the demands, people say he will ask for 80k I can guarantee he will ask for around 100k a week.

    yes he’s a good player but he’s also a mercenary, we don’t need these type of players at Newcastle

  • 3 Black and White with an army lol // Mar 9, 2014 at 9:13 AM

    toonarmydownsouth

    we don’t have the manager to reach Europe mate, nor do we have the squad size to do this

  • 4 Black and White with an army lol // Mar 9, 2014 at 9:19 AM

    Monaco must be in with these lot

  • 5 Tsunki // Mar 9, 2014 at 9:20 AM

    We are designed for PL presence not competition, forget europe its unecessarily cost-ineffective.

    FFP? Har dee bleedin’ Har. If these guys in charge of the richest clubs can move thier finances across international boundaries and hide it away from government revenue institutions, EUFA’s poxy tariff wont scare them. The Chelski’s, Citeh’s etc of this world sit above all that nonsense.

  • 6 Blackley and Brownlie // Mar 9, 2014 at 9:20 AM

    I can’t believe we’re getting the remy story again. Nothings changed. Nobody knows anything. This has ran and ran. Honestly, the stuff of little kids in playgrounds. Just wait and see what happens. In the meantime forget about it. It looks likely he’ll go. Leave at that. Move on.

  • 7 Tsunki // Mar 9, 2014 at 9:24 AM

    The laughable thing is, Remy is no saviour. I dont even think he’s in the top league of PL strikers. In short, whatever he costs he isnt worth it imo. We’ll get someone else.

  • 8 toonarmydownsouth // Mar 9, 2014 at 9:26 AM

    Black And White With An Army lol
    We’re well within reach of 7th spot which can potentially be a European qualifier

    Squad size has nothing to do with qualifying

  • 9 Mister Tuff // Mar 9, 2014 at 9:45 AM

    Jail – morning -yes the Remy story was an embarrassment to the club. In the absence of any other information it does look like the odds are against us signing him -probably was intended that way to keep the costs down.
    Still think we will be spending in the summer -but how much is the question and all the duffers/deadwood need to be shipped out -as soon as the season finishes. Hanging onto duffers just prolongs mediocrity.

  • 10 Blofal // Mar 9, 2014 at 9:47 AM

    If WBA go down what do you guys think about getting Anichebe on the cheap?

    He is only 25yrs old and very strong. Holds the ball up well.

  • 11 Mister Tuff // Mar 9, 2014 at 9:47 AM

    Blackley -cannot believe you are suggesting we move on from a topic. That is certainly a Sunday morning surprise.

  • 12 lesh // Mar 9, 2014 at 10:27 AM

    Agree with Ed in that clubs should need to meet or better FFP requirements – and that includes whether sponsorships and marketing deals pass the fair value test in the course of the years before and after qualification, whether in UEFA competitions or not.

    And, situations where owners write off massive debts or change it for equity should be considered too. FFP ought to apply to all clubs, whether in the context of playing in European competitions or not, thus making competition in the EPL fair.

    Futhermore, it makes a nonsense of FA or FL FFP rules if the owners of clubs like Leicester, QPR et al can massively finance a promotion push to the disadvantage of the less wealthy. If financing a promotion to the EPL, SPL or other international leagues deemed legal by the courts (Leicester et al said to be taking legal action to have FL FFP rules overturned), then it makes a nonsense of the spirit of FFP.

    Unless applied rigourously, FFP will be meaningless.

  • 13 Blackley and Brownlie // Mar 9, 2014 at 10:42 AM

    Tuff

    People complain about the pardew incident being talked to death when it’s made world news and is only a week old. And yet they seem quite happy to squeeze this remy story dry. Like an old orange, it gets slung in the bin, only for it to be pulled out every few days to have another suck. Its not even news. It never was.

  • 14 The next Mike Williamson // Mar 9, 2014 at 2:15 PM

    What’s the chances of Platini coming down hard on his new Qatari friends?

    PSG & Man City are flouting the rules with these dodgy sponsorships, and should be demoted or at least get a 15 points deduction and ban from Europe. If Platini wasn’t in their pocket that’s what would happen.




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