Have QPR got away with breaking FFP

[FulhamStu]

I have seen no punishment handed out to QPR for their masssive over-spend
a few seasons ago.  They are buying players and will inherit £9M from the
Stirling sale.  Meanwhile Blackburn and others get punished with transfer
embargos and large fines.  Anyone know how they seem to have got away with
this ?    They will be rivals next season and I can't understand how they have
got away with it

[Roberty]

The jury is still out - but here is a piece that was published in the Telegraph that explains how we have got round the worst of our problems:-

QPR's fate hinges on the legitimacy of a write-off of £60 million of shareholder loans in their 2013-14 accounts, hardly the most subtle attempt to dodge an FFP sanction.

Yet, there is a genuine loophole in the regulations which Rangers failed to exploit, one which would almost certainly have reduced the impact on the club of the league's so-called Fair Play Tax.

More gallingly for QPR, it is something which may have been employed by several of their rivals, Inside Sport has learnt.

A glance at the most recent accounts of Fulham highlights how, back in 2013, before their relegation from the Premier League, Rangers could have knocked tens of millions of pounds off any fine.

Last season saw Fulham's losses rocket from £2.7 million to £33.3 million, a staggering increase considering they enjoyed a near-£20 million jump in turnover on the back of the new Premier League television deal.

More than half that loss (£16.9 million) was the result of what is known as 'impairment', a method of consolidating future losses on player purchases.

When most players are bought, their transfer fee is spread evenly over the course of their contract in a club's accounts. So, the £50 million Chelsea paid for Fernando Torres in a five-year deal added £10 million per-season to their outgoings.

Fulham reversed this process, in an attempt to reduce their losses for this season and beyond. They would not comment on the reason for that, but it is understood that complying with FFP rules in the Championship was one motivation.

That is because, unlike in the Premier League, where clubs are permitted to make losses of £105 million over three years, Championship teams are only allowed to lose £8 million a season.

[grandad]

Neither do I. Perhaps a question for MIke.

[westcliff white]

As I understand QPR have a legal case with the FL over this, so the punishment is delayed until that is heard or a resolution can be found.

[MJG]

Neither do I. Perhaps a question for MIke.

Not to go into it too much and bore the pants off everyone... "its in the hands of lawyers"   I'd be surprised if we hear anything prior to November

[Wolf]

If the accountants of a team looking likely for relegation aren't writing down the value of assets (impairment) they're doing a pretty crappy job.

[Roberty]

If the accountants of a team looking likely for relegation aren't writing down the value of assets (impairment) they're doing a pretty crappy job.

Impairment plays havoc with the balance sheet and perhaps they were trying to avoid that?

[MJG]

If the accountants of a team looking likely for relegation aren't writing down the value of assets (impairment) they're doing a pretty crappy job.

Impairment plays havoc with the balance sheet and perhaps they were trying to avoid that?

The other two relegated with us also did this trick,  first time all three who went down had done it to such a large extent.
I'd expect All three who came down this year to devalue their squads by large amounts.

[Skatzoffc]

If it's in the hands of lawyers until mid-way thro the season, what happens to the players they've bought when they should have been under an embargo?

This is a farce, as usual...

[Logicalman]

The jury is still out - but here is a piece that was published in the Telegraph that explains how we have got round the worst of our problems:-

QPR's fate hinges on the legitimacy of a write-off of £60 million of shareholder loans in their 2013-14 accounts, hardly the most subtle attempt to dodge an FFP sanction.

Yet, there is a genuine loophole in the regulations which Rangers failed to exploit, one which would almost certainly have reduced the impact on the club of the league's so-called Fair Play Tax.

More gallingly for QPR, it is something which may have been employed by several of their rivals, Inside Sport has learnt.

A glance at the most recent accounts of Fulham highlights how, back in 2013, before their relegation from the Premier League, Rangers could have knocked tens of millions of pounds off any fine.

Last season saw Fulham's losses rocket from £2.7 million to £33.3 million, a staggering increase considering they enjoyed a near-£20 million jump in turnover on the back of the new Premier League television deal.

More than half that loss (£16.9 million) was the result of what is known as 'impairment', a method of consolidating future losses on player purchases.

When most players are bought, their transfer fee is spread evenly over the course of their contract in a club's accounts. So, the £50 million Chelsea paid for Fernando Torres in a five-year deal added £10 million per-season to their outgoings.

Fulham reversed this process, in an attempt to reduce their losses for this season and beyond. They would not comment on the reason for that, but it is understood that complying with FFP rules in the Championship was one motivation.

That is because, unlike in the Premier League, where clubs are permitted to make losses of £105 million over three years, Championship teams are only allowed to lose £8 million a season.

Khan 1 - Fernandes 0 then?   049:gif    :005:

[MJG]

If it's in the hands of lawyers until mid-way thro the season, what happens to the players they've bought when they should have been under an embargo?

This is a farce, as usual...

No, there is a fine enforced,  not an embargo for what QPR did.

[fulham traveller]

Ffp is a joke. Stupid a
Idea where club stick to the rules and some break it and get off with it total shambles

[MasterHaynes]

If the accountants of a team looking likely for relegation aren't writing down the value of assets (impairment) they're doing a pretty crappy job.

Impairment plays havoc with the balance sheet and perhaps they were trying to avoid that?

The other two relegated with us also did this trick,  first time all three who went down had done it to such a large extent.
I'd expect All three who came down this year to devalue their squads by large amounts.

Although in our case the write down was probably overdue and realisation that we would not be able to sell on any of the players we were left with and others where we cancelled their contracts last sumer and took the hit then