Profit and Sustainability - is dead and replaced

[magicdaps10]

Blimey Rocky’s had a sherry.

2 actually

 

[Darran]

2 actually

Have a lie down.

 

[Swanjaxs]

Oh shut up will! You need to get a hobby or something because you are spending too much time on here and making yourself look like a right prick.

Calm down dear

 

[Smurph]

Blimey Rocky’s had a sherry.

And on a school night as well

 

[Smurph]

Oh shut up will! You need to get a hobby or something because you are spending too much time on here and making yourself look like a right prick.

Bully

 

[magicdaps10]

Bully

Just calling you out

 

[Swansea93]

Calm down dear

It’s only a commercial

 

[Londonlisa2001]

Couple of points in this.

Firstly, it’s not designed to make the league ‘fairer’ or to create a level playing field, or to narrow the gap between parachute clubs and others. It’s designed with one purpose - to attempt to stop clubs from gambling and going out of business.

Which should give an indication on whether it is or isn’t ‘stricter’ than what’s gone before,

Secondly, we have remained within current rules - we would have broken these rules. That again gives an indication of whether it is or isn’t ‘better’ for us.

Thirdly, the new rules are not as straightforward as squad wages / revenue.

The actual new rule takes revenue, adds profit from player trading (or reduces it if there’s a loss) and compares that with squad cost - wages, agents fees, amortisation of transfer fee (over contract length), cost of the first team manager. I believe coaching staff are excluded but can’t find a definitive answer on that.

Owners are allowed to increase the allowance by £33m over three years, limited to £15m maximum in any one year.by injecting equity.

There are strict guidelines about related revenue being used if it’s not at market value (the snoop stuff talked about before - has to be market value at the sum that could be earned in an arms length transaction).

It’s basically massively favouring the relegated clubs, plus any club with extreme revenue (Wrexham). It’s good for us in that it resets when we were near to 3 year average maximums under the old method (I imagine we voted for it and others in the same position will have done for just that reason)), but unless we have significant sponsorship increases, this will be difficult for us as we have low attendance figures and generally low revenue figures.

We’ll see.

It does place a huge onus on increasing commercial income. I’d note that two things can both be true - (1) that we are talking about commercial revenues in a different ball park to previously and, indeed, in excess of premier league days and (2 ) they may be nowhere near Wrexham type levels. We really have had very low revenues from this stuff historically, even in the premier league.

Another thing it means is Gorringe can’t try to improve our position by continuing to remove or reduce non football salaries - it will have no effect.