Financial Fair Play considerations?

[clarethomer]

Just wondering whether anyone can help me understand how this works and whether any implications we may have.

I can see that we have spent best part of £56m according to the below and the players that have gone out have been in the main loans.

Didn't want to add this into the transfer thread on basis that its more about how FFP works and the considerations to the finances.

Ins

Screenshot 2023-08-09 at 11.34.03.png (437.26 KiB) Viewed 668 times

Outs

[claretonthecoast1882]

You are allowed to make a loss of around £105 million I think it is over a rolling 3 year period

[eastcoastclaret]

As claretonthecoast says, you would need to look at it over 3 yrs.

[gawthorpe_view]

As claretonthecoast says, you would need to look at it over 3 yrs.

And in the last three years we've brought in tens of millions in player sales, that plus TV and parachute payments should see us reyt.

[RVclaret]

The amount that contributes from transfers (in this case) isn’t the headline 55m.

It goes off player amortisation in the accounts which is basically the cost of the player over his contract length.

So if each of those players we’ve signed for an alleged 55m have a 5 year contract then the amount that goes to FFP for that season is 55 / 5 = 11

This is why Chelsea have been ‘finding loopholes’ with FFP by giving players 8 year contracts. It reduces the contribution amounts on an annualised basis.

Then as others have said there’s a max loss of 105m over a rolling 3 year period. Wage bill is also included of course.

[Roosterbooster]

Does it take into account money in the bank? You could lose £106m over 3 years, but still not be in debt if you've been wise for 10 years beforehand

[clarethomer]

Thanks all- good to know.

[ŽižkovClaret]

I'd guess the plan is to make that back, and more, within the rolling 3 year period, negating any issue.

Whether the plan works, we will have to see, however the players we are buying do seem generally to be ones that you would anticipate getting at lest the same if not a higher fee back for.