SHA Small Heath Alliance

Redditch Blue

Le Mod said we must stay up ‘at all costs’. Nothing is off limits.

Exactly, Welcome Don

Perhaps a stupid question, but if we were relegated, does that affect the FFP situation? Are the allowed losses the same in league 1 as the championship?

I think that could have an effect on how the board sees relegation, again, probably a stupid question as I’d imagine it’s the same, but part of me thinks the EFL would be mad to let league 2 teams have £30m odd losses over 3 years.

So to answer my own question, a quick google says that there is a difference between league 1 and the championship. League 1 and 2 are capped as a percentage of revenue for player wages (SCMP) that is the allowed expenditure.

So if we were relegated we’d have to amend our business model to suit. Having a higher revenue than most clubs in the league would help, but we would be limited in a different way to the rules of the championship, we couldn’t, for example, gamble big and sign high earners to take us straight back up.

Again, it’s a quick google, but if anyone can clarify that would be great. Looking at it briefly it appears very difficult to ‘buy’ yourself out of the league, but with our revenue we should be streaks ahead anyway.

Radavis

So to answer my own question, a quick google says that there is a difference between league 1 and the championship. League 1 and 2 are capped as a percentage of revenue for player wages (SCMP) that is the allowed expenditure.

So if we were relegated we’d have to amend our business model to suit. Having a higher revenue than most clubs in the league would help, but we would be limited in a different way to the rules of the championship, we couldn’t, for example, gamble big and sign high earners to take us straight back up.

Again, it’s a quick google, but if anyone can clarify that would be great. Looking at it briefly it appears very difficult to ‘buy’ yourself out of the league, but with our revenue we should be streaks ahead anyway.

It’s based on wages vs turnover but there are exclusions for prior contracts over a certain length

Radavis

So to answer my own question, a quick google says that there is a difference between league 1 and the championship. League 1 and 2 are capped as a percentage of revenue for player wages (SCMP) that is the allowed expenditure.

So if we were relegated we’d have to amend our business model to suit. Having a higher revenue than most clubs in the league would help, but we would be limited in a different way to the rules of the championship, we couldn’t, for example, gamble big and sign high earners to take us straight back up.

Again, it’s a quick google, but if anyone can clarify that would be great. Looking at it briefly it appears very difficult to ‘buy’ yourself out of the league, but with our revenue we should be streaks ahead anyway.

That’s not quite right. You can count equity injections and owner gifts as revenues so you can spend your way out basically. Plus all contracts of 3 years or more awarded before September of the previous year are excluded.

[www.financialfairplay.co.uk]

Radavis

So to answer my own question, a quick google says that there is a difference between league 1 and the championship. League 1 and 2 are capped as a percentage of revenue for player wages (SCMP) that is the allowed expenditure.

So if we were relegated we’d have to amend our business model to suit. Having a higher revenue than most clubs in the league would help, but we would be limited in a different way to the rules of the championship, we couldn’t, for example, gamble big and sign high earners to take us straight back up.

Again, it’s a quick google, but if anyone can clarify that would be great. Looking at it briefly it appears very difficult to ‘buy’ yourself out of the league, but with our revenue we should be streaks ahead anyway.

That’s not quite right. You can count equity injections and owner gifts as revenues so you can spend your way out basically. Plus all contracts of 3 years or more awarded before September of the previous year are excluded.

[www.financialfairplay.co.uk]

I did not know this and may make relegation VERY slightly more palatable (though IMO it'd still be an unmitigated disaster).

Yeah, Blues would be able to spend 75% of turnover on wages, but turnover can include unlimited owner equity injections, so you can Man City it

And the wages of any players signed before the September in the relegation season, who are on 3 year deals or more, are excluded. So the wages for Roberts, Buchanan, Sanderson, Bielik, Dembele and Laird wouldn’t count towards the calculation if we kept them.

Still desperately need to stay up though

Here are the relevant sections from the EFL annexes

“The SCMP requirement for a Former Championship Club shall, in its first season as a League One Club, be amended such that the Club’s Player Related Expenditure (as defined in Appendix B) shall not exceed:
75% of the Club’s Relevant Turnover (as defined in paragraph 1 of Appendix A) for the Reporting Period, plus
100% of the Club’s Football Fortune Income (as defined in Paragraph 2 of Appendix A) for the Reporting Period.”

“Donations – Donations from independently run lotteries, PFA contributions for Private Medical Insurance, small gifts from benefactors, donations towards Player salary costs, payment for taxation losses etc. are allowable. Significant donations must be evidenced by a bank receipt or statement to show funds have been credited to the Club’s bank account by the end of the relevant Reporting Period. To be included in the Club’s SCMP Submission, a signed Letter of Guarantee (in the format required by The League from time to time and which as at the date of these Rules, is as set out in Appendix D) must be received by The League to confirm that there is no interest linked to the donation or any requirement for future repayment of the donation by the Club.”

“Cash Injections – Significant cash injections from companies or benefactors must be evidenced by a bank receipt or statement to show funds have been credited to the Club’s bank account by the end of the relevant Reporting Period. To be included in the Club’s SCMP Submission, a signed Letter of Guarantee (in the format required by The League from time to time and which as at the date of these Rules, is as set out in Appendix D) must be received by The League to confirm that there is no interest linked to the cash injection or any requirement for future repayment by the Club of the cash injection.”

“Equity Injections – Only include non-redeemable Equity investments received (or to be received) in the relevant Reporting Period. The:
conversion to Equity of any debt; and/or
writing off of any debt,
where such debt was created in any prior Reporting Period, does not constitute a form of revenue as no cash is provided to the Club to finance wages in the current Reporting Period. Further, any linked transactions whereby loans are repaid followed by an injection of cash in exchange for Equity, will not be allowed. Any injection of cash as Equity must be evidenced by a bank receipt or statement to show funds have been credited to the Club’s bank account, and a copy of the signed Companies House forms confirming the issue of new share capital must be received by The League by the end of the relevant Reporting Period. To be included in the Club’s SCMP Submission, a signed Letter of Guarantee (in the format required by The League from time to time and which as at the date of these Rules, is as set out in Appendix D) must be received by The League to confirm that the Club’s shareholder(s) will inject the necessary Equity into the Club prior to the end of the relevant Reporting Period.”

I've come to this late and haven't got time this morning to read whole thread so if mentioned ignore me. But i'm not sure what more reassurance we need that Wagner is sticking aroudn than to run an open house session called 'Ambition' Why would they waste the man hours and cost needed to put that event on ,with him flying over minimum first class if not private jet, if he was a month later going to put the for sale sign up. Yes, they may not have bought us if we went down, but they had already ploughed an awful lot of money into research and legal fees, so i'm not even sure they wouldn't. But there is zero chance they walk now.

They’ve said they’re all in.

Venture Capitalists don’t lie. They’re the good guys.

Robert Hopkins

I've come to this late and haven't got time this morning to read whole thread so if mentioned ignore me. But i'm not sure what more reassurance we need that Wagner is sticking aroudn than to run an open house session called 'Ambition' Why would they waste the man hours and cost needed to put that event on ,with him flying over minimum first class if not private jet, if he was a month later going to put the for sale sign up. Yes, they may not have bought us if we went down, but they had already ploughed an awful lot of money into research and legal fees, so i'm not even sure they wouldn't. But there is zero chance they walk now.

As I said before, look at what people are saying on Facebook. We mock these people but we also have to accept that there may be many people who are concerned.

Nikola Zigic

Are we saying Paik and Bacuna can't start because they've been on a plane?

Bacuna is only going to Turkey! It's 4 hours!

Wont be an issue.It's a given that in true Blues style they'll both come back with season ending injuries.

Thanks, I’d seen the contracts info but not the donations but, which does make a huge difference.

Not that we’ll need this info as we’re going to go on a winning streak.