Author Topic: Explained: FFP, Parachute payments, Fulham finances and last years punishments  (Read 5362 times)

MJG

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Ok four links which explain and give background to FFP, Parachute payments and Fulham finances. As for anything thats going to happen to Fulham I refer you to the FST statement in the minutes from last meeting: http://fulhamsupporterstrust.com/news/2015/12/2/trust-meeting-with-fulham-ceo-december-2015.html


http://www.financialfairplay.co.uk/financial-fair-play-explained.php

http://www.danielgeey.com/premier-league-parachute-payments-explained/

http://swissramble.blogspot.co.uk/2015/06/fulham-penthouse-and-pavement.html       Details about Fulham's accounts for 2013-14

http://www./9/46/finances/         My take on our finances in two articles from early 2015


And from late last year this is the punishment that Blackburn, Forest and Leeds were hit with:

The Football League has also confirmed the way in which FFP embargoes will operate for clubs placed under this sanction.

Clubs will be prohibited from registering any new professional players (permanent contract or loan) unless they have:

•    24 or fewer established players (players aged 21 or over that have made at least 5 starting appearances for the club).
 
Where clubs have fewer than 24 established players, they will only be permitted to sign players in the following circumstances (with the player in question being added to the club’s list of established players regardless of his age or previous playing experience):

•    Where the employee costs of a player being signed are less than £600,000 per annum (or pro-rata if signed on a shorter contract).

Where clubs have 24 established players, they will be permitted to trade on a ‘one out, one in’ basis but only if the employee costs of the player coming in to the club are no more than whichever is the lower amount of:

•    75% of the equivalent costs of the player going out.
•    Or a maximum of £600,000 per annum (or pro-rata if signed on shorter contract)
 
In addition:

•    Clubs under an FFP embargo will be permitted to sign a goalkeeper on an emergency basis (in line with existing regulations).
•    Clubs under an FFP embargo will not be permitted to pay transfer fees or compensation fees for professional players.
•    Clubs under an FFP embargo will not be permitted to pay a loan fee to another club, they may only pay the player’s wage (or a contribution towards it).
•    For incoming players, clubs can only pay Agents’ Fees as a benefit in kind to the player in question (as long as they do not exceed the £600,000 employee costs limit).





« Last Edit: December 18, 2015, 03:54:07 PM by MJG »

Offline Shredhead

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Thanks MJG - that's all very fascinating. Difference in TV money is outstanding.

MJG

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Thanks MJG - that's all very fascinating. Difference in TV money is outstanding.
Thanks, I dont think people realise how big the drop in income is from the PL to Championship.

Hence clubs have to cut wages (which Norwich do well) or cut squads (which we didnt do well).
Even the teams coming down this season, they will be paying PL wages, and yes they get parachute payments, but its all relative.
Our top earner when we came down was maybe on 70K (Parkrer) but can you imagine what some of the guys at Newcastle/Villa are on?