12:01, Wed 3 Apr
Onel Hernandez
El Mayor
666VAN
I might have missed it mate, but £54.9M losses now over the last Three years.

I believe £39M is allowed, if the owners cover £24M of the shortfall. How did/are we circumnavigating EFL FFP rules ? Surely we've failed for that period. And barring an £11M profit this season, we're going to fail the next 3 year rolling period too ?

You have missed it.

Operating losses are not the same as losses for PSR purposes, as there is stuff you can add money back in for.

We. Have. Not. Failed.

If we had, believe you me, we'd effing know about it.

Edit:

The calculation for you:

Linked Image

What I'd like to see is us do what Ipswich have done and show this in our accounts - page 4 of this link: [s3.eu-west-2.amazonaws.com]

If no other team could get a competitive advantage from seeing our live accounts, then yes.

In the unlikely event that they did get a competitive advantage, then no.

If any potential commercial partners could gain any leverage from knowing our financial position then we should keep it as private as possible.

I suspect a lot of clubs convince themselves they need to keep it secret, just because that is their nature.
I don't think it includes anything that can't be pulled from the accounts though, it just needs a bit of extra work (happy to be corrected on that though!)
12:22, Wed 3 Apr
derbyblue
derbyblue
i think they should make the rolling thresholds the same in EFL and EPL, that would simplify things and be more overt and stop clubs like Leicester et al skewing the finances by flitting between divisions and floating between rules/thresholds

just adds to the smoke and mirrors and we know other teams in this vicinity who benefitted from this

with the obscene money EPL clubs are subsidised there’s no real reason why any of them are running at losses

That wold mean the EFL adopting the EPL £105m figure.
In effect that would mean every club not getting parachute payments could spend more than double its income every season.

The P&S rules are supposed to improve finances not worsen them.

It's complicated but once a sufficient number of clubs lack financial discipline it forces everyone to overspend to remain competitive,
The big risk probably isn't at Leicester where the owners have very deep pockets and a very profitable business elsewhere to fund the club, but clubs where this isn't the case.
We are quickly heading to a situation where only multi-billionaires will be able to afford to own a Championship club.


how about the EPL adopt the lesser EFL figure. that’ll help sharpen some pencils and sort out club finances that are out of control

That's not how it works.
The small clubs have to give way to the richer clubs, not the other way round.

You can tell we are reaching the end of a period of PL TV contracts. Lots of clubs are reporting big losses. Spurs lost £90m.
They are juicing for the next deal which starts in 2025. Sky alone is worth £6.7 billion, plus the rest in the UK and overseas rights.
12:33, Wed 3 Apr
From this naming rights deal revenue will improve to around £30m including clicks etc. So what’s the overheads out of that lot? Still going to be loss making once all the recruitment is done I reckon. We’ve also got to factor in the expense claims that will go in for the drinks at The Roost. Edit new tv deal will come in soon won’t it?
Surely we will have a saving of around 150k-200k a week in wages from all those big hitters that are out of contract this summer. Yes we need to replace them but we should be looking at cutting the average wage down.
Hopefully with the stronger and more stringent financial rules coming in the days of astronomical wages will be coming to an end.
Look at all clubs and the majority of losses are purely down to wages.
This summer sees the end of GG much moaned about 3 year plan. Good times are ahead
12:53, Wed 3 Apr
Allowable losses are £13m a season, plus the excluded costs.
So with £30m income we can spend up to £50m more or less plus any income from transfers.

There will also be a lot of cash going in to Wheels soon which won't count for P&S.

That is more or less what we were spending under Dong pre-covid.
Spent well each season it should get us up near the play-offs.

We really need to start getting things right soon though.
12:55, Wed 3 Apr
I'd be intrigued to know whether we'd need to sell if we went down to balance the books.

Wage cap in League 1 Vs your turnover isn't there?

If we're at 145% already you assume we'd have to.

However I imagine the likes of Bacuna, Miyoshi, Paik etc are on sensible money.
“Oh Nikola Zigic”

H
If we do need to sell we actually have quite a few players that would get a fee for once.

I know Gardner has taken a lot of stick lately but for that he should be commended. From being stuck with players on silly wages that we are begging to move on to having decent aged players that will get a fee, it certainly improves our financial outlook.

I know we have sold dribs and drabs these past seasons but 4 or 5 could generate decent money if we were to sell now:

- Laird
- Sanderson (probs a loss but still a decent fee)
- James
- Miyoshi (profit)
- Bacuna
- Paik
- Buchanan
13:42, Wed 3 Apr
Sheep2
Allowable losses are £13m a season, plus the excluded costs.
So with £30m income we can spend up to £50m more or less plus any income from transfers.

There will also be a lot of cash going in to Wheels soon which won't count for P&S.

That is more or less what we were spending under Dong pre-covid.
Spent well each season it should get us up near the play-offs.

We really need to start getting things right soon though.

It’s a rolling three year period though isn’t it? They’ve confirmed they’re still loss making up to press.
13:47, Wed 3 Apr
We need to-
1) make more money.
2) stop wazzing money on crap players.
13:48, Wed 3 Apr
I’m available for consultancy services if the owners want to DM me
13:54, Wed 3 Apr
Are the points being deducted this season or next season?
14:14, Wed 3 Apr
Kumars Fashion Sense
Sheep2
Allowable losses are £13m a season, plus the excluded costs.
So with £30m income we can spend up to £50m more or less plus any income from transfers.

There will also be a lot of cash going in to Wheels soon which won't count for P&S.

That is more or less what we were spending under Dong pre-covid.
Spent well each season it should get us up near the play-offs.

We really need to start getting things right soon though.

It’s a rolling three year period though isn’t it? They’ve confirmed they’re still loss making up to press.

Yes, £39m over 3 seasons, which equates to £13m a season.

We are going to make losses every season we are in the Championship unless the move to Wheels unlocks a massive revenue source.
Or we somehow sell a player for a huge profit.

It is simply that if we want to compete for decent players we have spend similar amounts to other teams or get very lucky.
So if other teams spend up to the limit we have to do so as well. What we need is better spending though. We have been one of the worst teams for splashing out incoherently (mostly on wages) since 2012.
14:19, Wed 3 Apr
Kumars Fashion Sense
Sheep2
Allowable losses are £13m a season, plus the excluded costs.
So with £30m income we can spend up to £50m more or less plus any income from transfers.

There will also be a lot of cash going in to Wheels soon which won't count for P&S.

That is more or less what we were spending under Dong pre-covid.
Spent well each season it should get us up near the play-offs.

We really need to start getting things right soon though.

It’s a rolling three year period though isn’t it? They’ve confirmed they’re still loss making up to press.

It is.

However, we’re losing a fat year of losses off the other end after this year, which helps.

Plus - we’ve got higher broadcast income to come from the new tv deal kicking in, naming rights…
14:25, Wed 3 Apr
I'm pretty sure all that extra £ will get spent. Hopefully not in one big splash out, but so that we are steady within P&S over the next few seasons.

Given this season has been a disaster on the pitch I think it will take a while to get a decent squad.
14:43, Wed 3 Apr
That’s a good question. Last thing we’d want is to stay up by a point, and then they apply the deduction which sends us down.