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09-11-2012, 10:05 AM
  #8
Kimi
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Join Date: Jun 2004
Location: Newcastle upon Tyne
Country: England
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Quote:
Originally Posted by ProPAIN View Post
UEFA: "You're not making enough money? Ok, we'll cut off one of your major income then!"

Genius!

One day, someone is going to have to tell me how FFP works. If clubs in debt aren't allowed to participate, aren't all major clubs in the same boat? Or did I not understand that correctly? Is it even if they are in debt, they can justify that they still have enough cash flow coming in to compete (ticket sales, merchandise, sponsorships, etc.)?
It's not debt that's important, but income and expenses. You have to make enough money from the footballing operations to cover the normal expenses of the club. If you can cover all your loan payments, then having the mountain of debt isn't an issue. The books are looked at over a number of years too, so you can take a bad hit and still even out over the next few.

There's also some exceptions to the rules. Big one-off costs are ignored if they'll be helpful in the long term, such as a new stadium or training facilities. Take Arsenal, they've just build an expensive new stadium but it's not counted against them as they'll make money from it over the coming decades.

The Swiss Rambler has a post going over it that's a good read.

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