22 Jun 2013 13:07:38
am I right in thinking that the FA have introduced or are introducing shortly some sort of financial fair play system regarding wages and transfers and clubs overspending beyond thier means.
if this is the case how do we stand. we are supposed to be in the black financially but don't seem to have much more than a few bob to spend on players. I can however see a lot of clubs struggling this year and just hope that the efforts of the last few years to get our house in order now begin to pay off. really hope that BMD gets some sort of backing that he deserves.
come on leeds

yorkie

1.) 23 Jun 2013
Yorkie - spot on mate, they are - And it starts THIS season.

The basics are that a club has to eventually live within it means - and can not be bankrolled by a rich owner (not that we have one!). This season the club is allowed to overspend to a total of 8 million, made up of a 3million loss, and the other 5 million injected by the owner as a form of share issue etc. Although there is ONE loophole - Naming rights to the stadium. Any money gained from this isn't a cash injection as it is seen as a saleable commodity of the club, in the same as a player transfer is! So could see something along the lines of :-

"Monarch Stadium at Elland Road"!

Next season the overall figure lowers to 5 million and so on, until the club eventually runs as a self sustained business. ALL the football clubs have agreed it, and it also starts in the Prem in a season or so time.

There was an interesting article online a while ago from the Brighton owner that really hit the nail on the head - he gave the example of QPR's promotion season a couple of years ago.

To get promoted, they posted a loss of 25.8m pounds. IF the same happened next season, they would be fined 17.8m pounds by the Football League for breaching FInancial Fair Play rules. This fine would then be distributed amongst the other clubs in the league! In effect bankrolling to some extent their rivals promotion bid.

He also stated that Brighton were just about holding their own - and they had to have average home gates of 26. 5k to survive - so our 19. 5k makes our financial position worse!

So, on this basis even if GFH wanted to spend big, they can't. Especially as thanks to Bates 3.3million is already allocated to Ticketus.