Manchester City facing Financial Fair Play sanctions
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In the latest episode of the United Hour Podcast, Nik (@Rood) is joined by CEO Duncan Drasdo and Financial Director Andy Green from the Manchester United Supporters Trust for a special episode on all things behind the scenes at Old Trafford including a brief history of MUST and their aims today, views on INEOS and Sir Jim Ratcliffe so far, and the Old Trafford regeneration.
Read on Twitter that apparently Etihad deal was never considered RPT (related party transaction) by UEFA.
It was all a big joke.
It was all a big joke.
No, I was just adding them both for simplification. They're allowed a 20m loss next season and a 10m loss the season after that.
Ok. Thanks for clarifying that.
I think they will easily comply the 20 million loss next year. The will get winning money from league and also new money from BT sports deal. Two or three more dodgy commercial deals and they will be through.
I always had high hopes for FFP, but began to have doubts once PSG entered the picture. My suspicion is that Platini intended FFP as a weapon against the English teams, but his attitude would naturally change once his own former club - and his son - became a beneficiary of oil money.
Too early to say definitively, but it's not looking good. Allowing City to spend £50m plus sales is ridiculous.
Too early to say definitively, but it's not looking good. Allowing City to spend £50m plus sales is ridiculous.
Not sure how true this is , but interesting
Is FFP a way for Uefa to make more money? Where does the money go? Sorry if I missed it (and its blatantly obviously stated) but just asking?
Do the fines mean Platini and co can upgrade the hotels they stay at?
Do the fines mean Platini and co can upgrade the hotels they stay at?
The fines are not paid by City. It is just withheld from their UEFA winning/participating prize money. So, I am assuming it will always reman in UEFA's account.
If that's true, I think we can put M. Platini, UEFA and FFP all into a box marked RUBBISH.
Does that mean TV money as well??
Dont understand the negative comments here. You all should party. Its a great day for football.
The sanctions hurt City MASSIVELY. They cant raise their wage bill, must have 8! homegrown players in a CL squad of 21! The number of players and what they can spend is cut for two seasons!
Who cares if they get 40 million back. Its City. They have enough either way.
For German football a day to celebrate. And for you United fans too, who get all this money from legal deals.
I dont like Platini but HUGE THANKS TO HIM. SOME B****
The sanctions hurt City MASSIVELY. They cant raise their wage bill, must have 8! homegrown players in a CL squad of 21! The number of players and what they can spend is cut for two seasons!
Who cares if they get 40 million back. Its City. They have enough either way.
For German football a day to celebrate. And for you United fans too, who get all this money from legal deals.
I dont like Platini but HUGE THANKS TO HIM. SOME B****
Thanks. Would have been interesting to see what would have happened had City, say finished 7th. Partially cos there would be no winning/participating money lol.
TLDR: This will complicate City's attempts to buy the 3rd CM they need to actually win the CL. Also, Pantilmon will be sold and replaced by an English keeper. Massive raise for Micah Richards.
City will only be able to field 13 foreign players and 4 non club-trained players in the CL, so:
They either can't have a backup LB (one of Clichy or Kolarov goes) or they sell Milner and can then buy an LB/CB which gives them the cover they need. They really fecked up by not producing a single LB in the last 15 years they could just buy back and count as a club-trained player and let Boyata go. I guess Boyata can play there, too.
Selling Rodwell and replacing him with an English player who can be counted on to play DM and be the 4th CB. This is a problem. Citeh need to buy someone to play with Toure and Fernandinho in tougher CL games, and there's not an Englishman in sight. Gaz Barry is actually in the best form of any English DM, ironically enough. They might need to throw more cash at him and hope he's too tired to want to play often.
Or they can sell Javi Garcia, leave Demichelis off the list and sign someone who never gets hurt and plays DM and CB well. Javi Martinez would probably be out of it for them, but someone like him would be the idea.
Selling Pantilmon to replace him with an English player. Not sure who that would be, if Foster, Ruddy and Forster all want to start, but could probably convince one to take the money, and it's not like Joe Hart is Lev Yashin, so maybe they'll fancy it.
13 Foreign
Silva
Aguero
Dzeko
Negredo
Jovetic
Yaya Toure
Navas
Fernandinho
Kompany
Zabaleta
Nastasic
12-3rd CB AND 1st DM - Demichelis/Javi Garcia
13-Starting LB - Clichy/Kolarov
4 Homegrown
Milner
Joe Hart
English #2 Keeper
English DM/CB (Gaz Barry?)
4 Club
Micah Richards
Boyata
3rd Keeper
Karim Rekik (Dutch caps, so can`t be useless)
So, predictions:
-Dzeko is sold or Jovetic goes on loan for a year. City have great attacking depth and they could then use the spot to sign a foreign DM and still fit in Demichelis or a new 3rd CB who is foreign. Also, having Jovetic on loan playing against the other Prem contenders (for say, Southampton) might get you a result you otherwise wouldn't have, and he can't play against you.
-Pantilmon goes and a British #2 comes in. This seems like it has to happen.
-City can't convince Richards or Lescott to resign, and they hilariously buy an ex-city like SWP or Glenn Whelan.
City will only be able to field 13 foreign players and 4 non club-trained players in the CL, so:
They either can't have a backup LB (one of Clichy or Kolarov goes) or they sell Milner and can then buy an LB/CB which gives them the cover they need. They really fecked up by not producing a single LB in the last 15 years they could just buy back and count as a club-trained player and let Boyata go. I guess Boyata can play there, too.
Selling Rodwell and replacing him with an English player who can be counted on to play DM and be the 4th CB. This is a problem. Citeh need to buy someone to play with Toure and Fernandinho in tougher CL games, and there's not an Englishman in sight. Gaz Barry is actually in the best form of any English DM, ironically enough. They might need to throw more cash at him and hope he's too tired to want to play often.
Or they can sell Javi Garcia, leave Demichelis off the list and sign someone who never gets hurt and plays DM and CB well. Javi Martinez would probably be out of it for them, but someone like him would be the idea.
Selling Pantilmon to replace him with an English player. Not sure who that would be, if Foster, Ruddy and Forster all want to start, but could probably convince one to take the money, and it's not like Joe Hart is Lev Yashin, so maybe they'll fancy it.
13 Foreign
Silva
Aguero
Dzeko
Negredo
Jovetic
Yaya Toure
Navas
Fernandinho
Kompany
Zabaleta
Nastasic
12-3rd CB AND 1st DM - Demichelis/Javi Garcia
13-Starting LB - Clichy/Kolarov
4 Homegrown
Milner
Joe Hart
English #2 Keeper
English DM/CB (Gaz Barry?)
4 Club
Micah Richards
Boyata
3rd Keeper
Karim Rekik (Dutch caps, so can`t be useless)
So, predictions:
-Dzeko is sold or Jovetic goes on loan for a year. City have great attacking depth and they could then use the spot to sign a foreign DM and still fit in Demichelis or a new 3rd CB who is foreign. Also, having Jovetic on loan playing against the other Prem contenders (for say, Southampton) might get you a result you otherwise wouldn't have, and he can't play against you.
-Pantilmon goes and a British #2 comes in. This seems like it has to happen.
-City can't convince Richards or Lescott to resign, and they hilariously buy an ex-city like SWP or Glenn Whelan.
I agree with this. And, Liverpool would have won the league this year. However, the fact that both of our rivals are at the top makes it all the more exciting does it not? who would you rather be up there with, Chelsea, Arse or those 2? Sure it hurts that little more when they win, but it also makes success that little sweeter.This will pretty much put a stop to the next big team in the land. No one will be able to buy a team and buy loads of players to enhance it unless the team already has a good income ( like us)
I actually didn't mind the rise of chelsea and city. They made this league better.
They wouldn't care how far they can go in the CL. Their only target next year is to make loss less than 20 million. They can easily do it with "commercial deals". They have said they can spend 60 million net spent, which will be enough for them to compete and probably win the league.
So UEFA say that the sponsorship deal was legal, but at the same time it was excessive.
It's either fair or it's not, guys. Stop sitting on the fence.
It's either fair or it's not, guys. Stop sitting on the fence.
The valuation is overvalued, but the sponsorship in itself is fine.
City are Champions they won't care!
Madrid have been spending like a circus from the beginning of time but UEFA only have a problem with it now because the smaller guys are throwing the cash around and they want a piece of the pie...good day to celebrate if you like UEFA execs.
Madrid have been spending like a circus from the beginning of time but UEFA only have a problem with it now because the smaller guys are throwing the cash around and they want a piece of the pie...good day to celebrate if you like UEFA execs.
Maybe they won't get Mangala after all.
Things could have been a lot worse for city...they could have had david moyes as a manager
You left Nasri out of that as well.Tough one for City.
I don't think Platini ever played for PSG mate, though fair point all the same with his son working there and PSG looking like the first french team in a long time capable of doing anything in europe.
Way to read one post in a long thread and jump to the exact wrong conclusion.
Lets get Toure off their hands. We'll be helping them.
Fair enough. I didn't just make it up though, I read it somewhere. Blooming internet!
The squad restrictions should prompt them to finally use that elite development academy group squad b.s thing they've been banging on about. Or the majority of their summer business will involve u21s.
Clichy is homegrown
Barry, Lescott and Richards all out of contract at the end of the season. I head they offered Richards a big contract, I wondered why at the time but now it makes sense. I still don't think he'll stay though.
Only Lescott
Richards has a contrac til 2015
Barry case: http://www.mirror.co.uk/sport/footb...ton-transfers-manchester-citys-gareth-3524701
That's tantamount to fraud/deliberate deception surely? Why on earth weren't they banned from the CL for that alone, never mind the other things?
Oh right. Will they force Richards to stay for now then? And I assume Barry will just go somewhere else other than Everton.
It isn't that at all. FFP is there to stop unsustainable spending. If their Sheikh pulls out then they're up shit creek with no paddle for sure. They've made £150m loss in 2 years, that's shocking and they've still been held in breach despite their fraudulent sponsorship deals and spending stupid amounts on their academy which is considered when looking at sustainability.
The obvious danger for City is that these measures invoke the sugar daddy pulling out, which obviously achieves the opposite effect to FFP. If he does, they'd go down quicker than Daniel Sturridge but if anything that proves FIFAs point. Madrid can be distinguished as if they needed capital, they would have easy access to finance as they could borrow against guaranteed income of season tickets and merchandise. They could tighten up and survive quite comfortably with a tad of frugleness for a season of two. City would be finished in 3 months.
Madrid bring in the most income out of all football clubs. They spend what they earn. If City earned as much as Madrid this wouldn't be an issue.
I think it's a great settlement. I can't see any aspect of the agreement that is particularly alarming for the club - it's a very short term, manageable punishment which will actually have little impact on the club over the next 12 months - it's quite a bizarre settlement, actually.
The financial punishment is a £16.28m loss of income over 2 seasons - split £8.14m this season and next. The fine is being reported widely in the £50m region - but the club are clearly confident that the conditions won't be breached, which makes the fine substantially less than originally speculated. The club, under the restrictions, will use the next year to steady the books, while already having a squad capable of challenging for the title next season.
The club are allowed a £16.28m loss this year, and £8.14m loss the year after. The club has already indicated in the announcement that it has posted break-even figures for this year, and suggests it will show a profit for next year - a reasonable assumption if all revenues have been accepted moving forward. Given the club now has specified targets to meet each year, it means the £50m loss posted last year can now be forgotten. It won't impact us in the next 2 reporting periods as it would have otherwise (both of which would have required no more than £37m losses over a 3 year judging period - meaning we'd need to show a £13m profit in the next 2 years, instead of a combined £30m loss, just to pass FFP).
The CL squad reduction for 2014-2015 is the biggest on field impact, but a one year punishment is very short-term, and very manageable. The club only used 21 players in the tournament last year, and an 18 man squad is only required each matchday. Even with home grown quota to meet we should be more than comfortable in getting through the group from pot 2, and just have to hope that the key players are fit if we get to the knockout stages - it's a small gamble to take, given that going into the competition with a 25 man squad doesn't guarantee progression.
The club can't have a net transfer spend of over £49m in the upcoming window, but all indications from the CEO had already been that only minor tweaking would be done - our squad is clearly not in need of £49m surplus investment in the upcoming window and even the announcement seems to indicate that this won't have any impact on the clubs plans. I'm actually surprised this figure is so high, and I suspect we'll still see a centre-back join the club for a healthy fee.
The wage bill for the club has to stay the same, with the club expecting wages to naturally decline because of the new wage structure more heavily linked to performances bonuses in new deals (which fall outside of the criteria being measured), this will have next to no impact on any transfer or spending decisions - and on a side note, if Mancini's payoff falls under wages for this financial year then already it's heavily reduced (not sure how it falls into it, though).
The financial punishment is a £16.28m loss of income over 2 seasons - split £8.14m this season and next. The fine is being reported widely in the £50m region - but the club are clearly confident that the conditions won't be breached, which makes the fine substantially less than originally speculated. The club, under the restrictions, will use the next year to steady the books, while already having a squad capable of challenging for the title next season.
The club are allowed a £16.28m loss this year, and £8.14m loss the year after. The club has already indicated in the announcement that it has posted break-even figures for this year, and suggests it will show a profit for next year - a reasonable assumption if all revenues have been accepted moving forward. Given the club now has specified targets to meet each year, it means the £50m loss posted last year can now be forgotten. It won't impact us in the next 2 reporting periods as it would have otherwise (both of which would have required no more than £37m losses over a 3 year judging period - meaning we'd need to show a £13m profit in the next 2 years, instead of a combined £30m loss, just to pass FFP).
The CL squad reduction for 2014-2015 is the biggest on field impact, but a one year punishment is very short-term, and very manageable. The club only used 21 players in the tournament last year, and an 18 man squad is only required each matchday. Even with home grown quota to meet we should be more than comfortable in getting through the group from pot 2, and just have to hope that the key players are fit if we get to the knockout stages - it's a small gamble to take, given that going into the competition with a 25 man squad doesn't guarantee progression.
The club can't have a net transfer spend of over £49m in the upcoming window, but all indications from the CEO had already been that only minor tweaking would be done - our squad is clearly not in need of £49m surplus investment in the upcoming window and even the announcement seems to indicate that this won't have any impact on the clubs plans. I'm actually surprised this figure is so high, and I suspect we'll still see a centre-back join the club for a healthy fee.
The wage bill for the club has to stay the same, with the club expecting wages to naturally decline because of the new wage structure more heavily linked to performances bonuses in new deals (which fall outside of the criteria being measured), this will have next to no impact on any transfer or spending decisions - and on a side note, if Mancini's payoff falls under wages for this financial year then already it's heavily reduced (not sure how it falls into it, though).
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How does this sanction encourage a level playing field which it is supposed to? They get £40m of it back just for not going and blowing a load on more players. Just shows that football is now indeed run by money, sadly.
What did FIFA about the inflated sponsorship deals/fake sponsorship deals?
To be fair to City they didn't have a hundred years to wait around increasing there income bit by bit!
But any idiot can see what is happening at City is actually good for the city of Manchester.
In my opinion Madrid/Barca are far more corrupt clubs.