[ame]https://twitter.com/FootballLaw/status/467379871279501313[/ame]
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****ing cheating cuntsComment
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Manchester City Football Club can confirm that at the end of the current financial year (May 31st) it is on course to financially break even, as planned.
Operating with no debt, the Club is realising its football and commercial opportunities whilst continuing unprecedented investments in both youth development and the local community
From the outset, the Club has engaged with UEFA in its introduction of the Financial Fair Play Regulations in good faith and without prejudice and in a transparent and collaborative manner. The Club’s position is that it is beholden upon UEFA and the European football establishment to ensure the same.
The Club can confirm that it has been in discussions with UEFA over the last month - in relation to the application of Financial Fair Play regulations - as has been widely reported and communicated by UEFA. At the heart of those discussions is a fundamental disagreement between the Club’s and UEFA’s respective interpretations of the FFP regulations on players purchased before 2010. The Club believes it has complied with the FFP regulations on this and all other matters.
In normal circumstances, the Club would wish to pursue its case and present its position through every avenue of recourse. However, our decision to do so must be balanced against the practical realities for our fans, for our partners and in the interests of the commercial operations of the Club.
As a result of these considerations and the fact that the Club is now break even in in its operations, the Club has decided to enter into a compromise agreement with UEFA with the following practical outcomes:
- MCFC will lose 10m Euros of its share of income from UEFA for competing in the Champions League completion in season 2013-14.
- MCFC will lose 10m Euros of its share of income from UEFA for competing in the Champions League for season 2014-15
- Rather than having an accumulative allowance of 30m Euros of losses over the next two reporting years (like all other clubs), MCFC will have specific stipulated allowances for 2013-14 and 2014-15 of 20m Euros and 10m Euros respectively. Significantly, MCFC plans to be profitable in 2014-15 and in the years that follow.
- The MCFC Champions League squad for the 2014-15 competition will be limited to 21 players. In 2013-14 the club registered 23 players for the competition and used 21.
- The Club’s expenditure on new players for the upcoming summer transfer window, on top of income from players it might sell, will be limited to 60m euros. This will have no material impact on the Club’s planned transfer activity.
- The wage bill of the whole club (playing and non-playing staff) for 2014-15 will need to remain at the same level as that of 2013-14 season. It is important to note that additional bonuses for performances can be paid outside this number. Importantly, in reality, the existing MCFC business plan sees a natural decline in that wage bill.
- Given the unique nature of the new City Football Group structure – which incorporates MCFC, New York City, Melbourne Heart and a number of other companies, the Club has agreed to certain non-material terms in order to make FFP reporting as easy as possible for UEFA to discern.
The nature of conditions that will result in the lifting of sanctions means that the Club expects to be operating without sanction or restriction at the commencement of the 2015-16 season.
Importantly all non-financial sanctions agreed to would have been complied with as a natural course of the Club’s planned business operations.Comment
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Well as we can see now,if they play nice next season they get the €40m back so it doesn't matter really. At least they have spending restrictions going forward.Originally posted by Lecter View PostI'm not sure this is actually the case, there seems some doubt
Will City’s fine cause future Break Even issues?
There seems to be a difference in opinion in the media about whether Man City’s £50m fine will count towards any future FFP Break Even test. Some have reported that the fine would be excluded - on the face of it, this makes sense as it would make it harder to pass the test in future years. However as they stand, the FFP rules don’t currently contain the provision for fines to be excluded.
Interestingly, BBC’s 5 Live’s @richard_conway reports that the fine is actually a phased deduction from central Champions League prize revenue over three seasons. If this were the case, then it seems likely that the deduction WOULD impact the Break Even test present issues in future years.
The accounting treatment of the fine has other interesting dimensions. From this season (2013/14), new spending constraint rules have been in place in the Premier League. These restrict wage increases to a maximum of £4m per season, or to the value of a club’s ‘Own Revenue Uplift’ if greater than £4m. This Own Revenue Uplift is effectively made up of changes in Commercial income, plus profit on player trading, plus changes in Champions League revenue. The issue for City is how the ‘fine’ will be treated by the Premier League for the purposes of revenue uplift if it represents a reduction in Champions League Revenue. If Conway is correct, it seems likely that the UEFA’s sanction would restrict the club’s ability to increase their wage bill next season (although the club recently forecasted an increase in Commercial Income for the 2013/14 season).
It is worth pointing that City’s last reported wage-bill was much higher than the previous year’s as it included Mancini’s pay-off. In previous years, City, like other PL clubs have categorised managerial pay-off as one-off Exceptional items (rather than as Wages). By boosting their wage-bill in the 2012/13 season, the club have insulated themselves against some of the impact of the PL constraint rules and also against UEFA’s proposed/intended punishment. It will be interesting to see if following events at UEFA, Premier League clubs consider objecting to City’s unusual treatment of Mancini’s pay-off.
It's all a bit gutting when you think since they've been financial doping for years they really shouldn't have won the league this season or in 2012.Comment
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Wonder if we see a big name exit from City this off season. They look like they are going to need to buy 2-3 English players this summer of top quality to try and meet the CL squad restrictions. Not going to be doing that just spending like mad men and thinking they will get away with it.Comment
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Hopefully they don't decide one of them should be Lallana!Originally posted by john316 View PostComment
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Max net spend of £50mComment
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Come on man, you are better than that sort of post aren't you?Originally posted by Sarb View Post*Except Michael, who died.Comment
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Would have meant something last season. Now they are pretty well stocked.Originally posted by Sarb View PostComment
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I still think that squad reduction is a really nice punishment. Some top players are going to be left out of that CL squad next season with the eight domestic players needing to be in that 21 man squad. If those players realise that they could be left out, then I'd imagine they will push to get out.Comment
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is the 8 players thing confirmed, will it not be 4 as its 21 instead of 25?Originally posted by john316 View PostComment
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Oh FFS Al.Originally posted by Alex View Post
Of course they're cheating cunts.
If you're happy with our competitors cheating, breaking rules and buying their way to the title then that's your choice, but don't have a pop at Sarb for calling it like it is.Comment
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They can re-register Richard Wright again.Originally posted by G View Post
Maybe bring in Franny Jeffers as reserve.
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Originally posted by Lee View PostOh FFS Al.
Of course they're cheating cunts.
If you're happy with our competitors cheating, breaking rules and buying their way to the title then that's your choice, but don't have a pop at Sarb for calling it like it is.
Not arguing with his point. More the fact he offered it in quite an aggressive way.*Except Michael, who died.Comment
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