Financial Implications of Lge 1 Relegation

[ABSwan]

Am I right in thinking that the only way that Tan can get a good amount of money back is by selling the ground. I doubt his court case against Nantes will come to much.

 

[Dr. Winston]

Am I right in thinking that the only way that Tan can get a good amount of money back is by selling the ground. I doubt his court case against Nantes will come to much.

As a piece of real estate the land the ground sits on will have a certain value. Without a sitting tenant the stadium itself won't be worth much.

If he does decide to fuck the club off then perhaps his easiest move will be to charge them a certain amount to play there. It's not as if they can go anywhere else and he'll be far from the first football club owner to sell the team and keep the stadium.

 

[Pacemaker]

Well Birmingham, relegated 50 pts bounced back but they brought in 40m of new players while only selling 1 for 5m

Huddersfield relegated 46pts, currently 10th, did a large squad over haul.

Rotherham, relegated 22 pts so not a fair comparison points wise to Cardiff's

Anyway who si the expert on here for the financial fair play rules in league 1. How did Birmingham have a net spend of 35m on transfers in if the rules are the way I said in the initial post. And yes I know rules can be broken

Financial Fair Play (FFP) rules do apply to League 1 and League 2 clubs, but they are implemented through a different framework called the Salary Cost Management Protocol (SCMP). This protocol, rather than the broader FFP rules, sets specific spending limits for player-related expenses for clubs in those leagues.

Here's a more detailed breakdown:

• SCMP:
  The SCMP is the financial framework specifically designed for League 1 and League 2 clubs.
• Spending Limits:
  Under the SCMP, League 1 clubs can spend a maximum of 60% of their turnover on player-related expenses, while League 2 clubs are limited to 50%.
• Impact on Investment:
  The SCMP also restricts how much of an owner's investment can be spent on players, with a proportion of investment exceeding a certain threshold being subject to the SCMP limits.
• Extra Income:
  Income from areas like prize money, cup earnings, and transfer fees is also subject to the SCMP limits, rather than being entirely available for player-related spending.

This was from the FA site so pretty accurate but not a great deal of detail.

I find it hard to believe that if your figures are correct that they have spent net £35m and that is less than 60% of their turnover

 

[Derwydd]

Financial Fair Play (FFP) rules do apply to League 1 and League 2 clubs, but they are implemented through a different framework called the Salary Cost Management Protocol (SCMP). This protocol, rather than the broader FFP rules, sets specific spending limits for player-related expenses for clubs in those leagues.

Here's a more detailed breakdown:

• SCMP:
  The SCMP is the financial framework specifically designed for League 1 and League 2 clubs.
• Spending Limits:
  Under the SCMP, League 1 clubs can spend a maximum of 60% of their turnover on player-related expenses, while League 2 clubs are limited to 50%.
• Impact on Investment:
  The SCMP also restricts how much of an owner's investment can be spent on players, with a proportion of investment exceeding a certain threshold being subject to the SCMP limits.
• Extra Income:
  Income from areas like prize money, cup earnings, and transfer fees is also subject to the SCMP limits, rather than being entirely available for player-related spending.

This was from the FA site so pretty accurate but not a great deal of detail.

I find it hard to believe that if your figures are correct that they have spent net £35m and that is less than 60% of their turnover

Their last reported season was their relegation season which had them with 28m turnover.

The 35m transfer spend is detailed here

Transfers 2024/25

 

[Derwydd]

Am I right in thinking that the only way that Tan can get a good amount of money back is by selling the ground. I doubt his court case against Nantes will come to much.

Sure I read it wrong. But I think they want 100m compo from that Nantes case which seems daft. But in their latest accounts they did recieve 12m from someone buying part of that settlement case. That 12m is recorded as unrefundable in their latest accounts. The case is supposed to be settled this summer

 

[Andrew - North Hill]

Financial Implications of Lge 1 Relegation.....is that it makes Cardiff more fucked than they were already.

Sign me up for that, Chief.

 

[monmouth]

I was talking about this with some friends last night, it really can't be overstated just how shafted Cardiff are right now.

Its only been a few years since they dropped out of the Premier League, they got a lot of players on wages that are unsustainable for the Championship let alone League One and I would be surprised if many of those have relegation clauses to reduce their salaries.

Tan the Man has been off the boil in regards to his love in with Cardiff City for a few years now, he isn't going to pump money into the club that he won't get back.

Added to both of those points is the significantly reduced income that they will have in League One. They have to sell or negotiate releases from contracts the vast majority of their squad and essentially do what Southampton, Ipswich and Sunderland did in previous seasons and scrap the whole thing and rebuild.

The biggest problem beyond all of that though is an owner who doesn't care and no leadership to guide them in a positive direction - that rebuild will be a monstrous amount of work and if they don't get anyone in who can do that competently then the slippery slope from League One to League Two beckons.

I don’t know or care how or if they might get out of their little pickle, but reading that brought joy to my heart.