UEFA Financial Fair Play

[JHP]

I can't find a thread for this, if there is on please add this to it.

This link shows the losses that are acceptable per accounting period adjusted to show the impact on English clubs with the depreciating Euro.

http://www.financialfairplay.co.uk/l...-pass-ffp-test

This summer's transfer window should provide some indication of the extent clubs like MCFC & CFC think they will be affected by FFP. If they believe it will be applied firmly and they're not going to be allowed to flaunt the rules they will need to do some serious trimming.

[G]

Champions league revenue set to double.That'll help them

Chelsea or Tottenham Hotspur will miss out on potential income of perhaps more than €100 million (£80.5 million) next season, depending on how events turn out on Saturday night.

Triumph would put Chelsea directly into next season’s group phase of Europe’s premier competition, eliminating fourth-place Tottenham before a ball has been kicked. Failure would preserve Spurs’ place in the tournament’s third qualifying round but would see Chelsea miss out on what will be the richest-ever Champions League tournament.
Next season is the first of a new three-year broadcast cycle for Uefa and the broadcast element of the competition’s revenues which, including sponsorships, currently total €1.1 billion (£850 million) — will at least double.
That could mean the €51.025 million earned by last season’s champions, Barcelona, would become €100 million in the 2012-3 to 2014-5 cycle. Indeed, with England’s broadcast market generating more cash for English clubs than their continental competitors, the impact could be even greater here.
When Real Madrid reached the Champions League semi-finals in 2010-11 they earned €39.3 million; Chelsea, despite only progressing to the quarter-finals, earned €44.5 million.

Yet even those returns will be dwarfed from next season according to indications from the 100-plus territorial broadcast deals Uefa has already agreed. “We have not finished yet but we have at least achieved treble-digit growth,” Uefa Events’ chief executive, David Taylor, said. “At the top end of football when you have a property as valuable as the Champions League, broadcasters want it.

“The financial crisis affects different sectors differently but at the top end of football the model is very robust.” Uefa’s success in negotiating improved broadcast incomes will assist Champions League clubs’ efforts in achieving break-even for Financial Fair Play purposes.

http://www.telegraph.co.uk/sport/football/competitions/champions-league/9276189/Champions-League-final-2012-Chelsea-or-Tottenham-stand-to-lose-out-on-80m-Europe-bonanza.html

[Nicey]

I still cannot get my head around this ... can someone explain it in dumb as **** language

[ChesterDave]

My understanding may not be entirely accurate but I believe you are not allowed to lose more than 38 million euros over 3 season rolling periods.

For clubs that operate within a parent company structure you cannot offset extra loses from profits made by non-footballing aspects of other businesses within the same parent group.

[Red_Polo]

I still cannot get my head around this ... can someone explain it in dumb as **** language

Brief summary probably missing a **** load out...

You can only spend on transfers and wages what you make from football revenue plus a bit more in a set period or you get sanctioned, potentially not being able to compete in UEFA competitions. If you try to take the piss by claiming you've got an insane sponsorship deal to slyly pump money in, they can review it and reset your income used for fair play purposes to a level they deem fair according to the market.

[Nicey]

Ok thanks so I get all that, but when does it actually take effect, am i right in think the season just gone will count and an average of that and the next season will be looked at, any club falling out of the guidelines will be punished in the next season. Also was it that they had to have operating loses for no more than 35 million over a two year period

?

Cheers

[G]

Its 45million euros over a 3 year period I believe.

The above increases in Champions league revenue prove more than anything that now is not the time for us to be fannying about with inexperienced managers.

We need to get back in to that asap or forever be midtable

EDIT:- its is €45 million over 2 years or £36 million

Manchester City face 'challenge' to meet Uefa's break-even rule as part of Financial Fair Play regulations
Manchester City’s off-the-pitch performance is already being closely monitored by Uefa under the “soft implementation” of its Financial Fair Play framework this season.

City are one of four Premier League clubs, alongside Manchester United, Tottenham Hotspur and Chelsea, contributing to a pilot of the regulations which take effect from next season.
The framework will form a key element of Uefa’s club licences, which teams must first receive before playing in European competitions.
Uefa’s Club Financial Control Panel is considering the monitors’ findings from the pilot project, which involves 39 clubs from across Europe, but these have not yet been made public.
However, Uefa recognises some clubs will have difficulty in meeting the regulations once they are implemented.
“The break-even rule represents a challenge for several clubs, not only in England,” Uefa’s head of club licensing, Andrea Traverso, told Telegraph Sport.

Clearly the English club facing the biggest challenge is Manchester City.
Analysis of every 2010-11 Premier League club’s financial results was published by Telegraph Sport on Wednesday and it showed City’s spending on running costs and debt-interest payments was £22 million more than they earned.
They then spent another £143.7 million on players, contributing to a net cash outflow of £178.8 million.
Although some elements of City’s cash spending would be deducted from Uefa’s FFP calculations as ‘allowable expenses’, there are also other accounting charges to be added in.
Uefa allows a €45 million (£36 million) limit for losses over a two-year period that will begin in two seasons and it is clear that City are on a trajectory to exceed that.
City expect their reported £400 million sponsorship deal with Abu Dhabi’s state airline, Etihad, to cover much of the earnings deficit.
But that is still awaiting regulatory approval, which stipulates that clubs receiving sponsorship from “related parties” must have been paid “fair value”.
“We have not conducted investigations for the time being,” added Traverso. “The rule has not yet kicked in and there would need to be two conditions to do so.
"Clubs need to have qualified for European competitions [before Uefa looks at whether] sponsorships are from related parties or if they are fair value.
“So we have not conducted assessments for any club. But most of the major clubs for sure are taking it very seriously and will be able to comply.
"We won’t have a decimated Champions League: there might be one or two who fail and then comply the following year.
“The soft implementation is also for that purpose: pointing out the problems and entering a constructive dialogue with the clubs.”

http://www.telegraph.co.uk/sport/football/teams/manchester-city/9258616/Manchester-City-face-challenge-to-meet-Uefas-break-even-rule-as-part-of-Financial-Fair-Play-regulations.html