My team (Newcastle) are owned by the Saudis worth billions, yet in order to buy Harvey Barnes, we had to sell St Maximan, to comply with FFP.
How come Chelsea or Man City can buy whoever they want and nothing is said?
I'm confused!
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I think it's got a lot to do with earnings over previous seasons, so Newcastle will be in an even better position next year after a year in the Champions' League.
But I agree that some clubs seem to have some very unique rules! |
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"I think it's got a lot to do with earnings over previous seasons, so Newcastle will be in an even better position next year after a year in the Champions' League.
But I agree that some clubs seem to have some very unique rules!"
Ah OK, thanks |
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"My team (Newcastle) are owned by the Saudis worth billions, yet in order to buy Harvey Barnes, we had to sell St Maximan, to comply with FFP.
How come Chelsea or Man City can buy whoever they want and nothing is said?
I'm confused!
"
its early days for Newcastle because you can only spend what you generate, for Newcastle it will take a few years to get your commercial revenue up to the levels of the other big clubs |
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I didn't expect my football analysis knowledge to be used here, but hopefully this is a helpful explanation.
FFP (Financial Fair Play) basically is a way to ensure that teams can spend in a sustainable manner. Now, this doesn't really matter to state-backed clubs like NUFC, but as a PL club, they have to abide by it (there's also a separate UEFA version).
It sounds great because 1. It avoids clubs having financial troubles 2. It prevents a club from just buying out the league.
However, it also has a downside of locking in existing hierarchies. So, clubs that spent big before FFP was a thing start out with an advantage of having better teams/infrastructure/coaches/sponsorships, etc.
That is case with Man City for example, their turnover as a club is just so much more than NUFC at present.
What Chelsea's doing now is a way to get around FFP by having long contracts as transfer costs are amortized. So, if a club spends 60mn on a player signed on a 6 year contract, then it only counts as 10mn/year for FFP.
The current limit is a maximum of £105mn losses over a 3 year period and given the fact that NUFC spent big in the last 2 windows, it reduces their budget a bit for this window.
Longer term, being in the UCL consistently and securing better sponsorship and other revenue would make NUFC a 'big club' as well (not that it isn't already!) and allow it to spend on par with its rivals. |
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"I didn't expect my football analysis knowledge to be used here, but hopefully this is a helpful explanation.
FFP (Financial Fair Play) basically is a way to ensure that teams can spend in a sustainable manner. Now, this doesn't really matter to state-backed clubs like NUFC, but as a PL club, they have to abide by it (there's also a separate UEFA version).
It sounds great because 1. It avoids clubs having financial troubles 2. It prevents a club from just buying out the league.
However, it also has a downside of locking in existing hierarchies. So, clubs that spent big before FFP was a thing start out with an advantage of having better teams/infrastructure/coaches/sponsorships, etc.
That is case with Man City for example, their turnover as a club is just so much more than NUFC at present.
What Chelsea's doing now is a way to get around FFP by having long contracts as transfer costs are amortized. So, if a club spends 60mn on a player signed on a 6 year contract, then it only counts as 10mn/year for FFP.
The current limit is a maximum of £105mn losses over a 3 year period and given the fact that NUFC spent big in the last 2 windows, it reduces their budget a bit for this window.
Longer term, being in the UCL consistently and securing better sponsorship and other revenue would make NUFC a 'big club' as well (not that it isn't already!) and allow it to spend on par with its rivals."
I get it now, thank you so much  |
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By *im494Man
over a year ago
Westhill |
FFP came about to stop what happened to Leeds and Portsmouth years ago, now it's used to keep clubs from climbing the ladder and keeping the rich clubs that were rich before at the top. Thankfully Newcastle got in the top 4 so next year after the champions league income they should have more spending power |
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(Teehee .. Just kiddin’ .. I know that’s like a red tag to a bull for Toon fans .. 
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