by Clyde1998 »
14 Jun 2024 11:33
14 Jun 2024 11:33
Crusader Royal wrote:Sutekh wrote:Forbury Lion wrote:Chelsea sold land assets such as the hotel to another company with the same owners to bridge the gap.
This is legal in the Premier League, not in the EFL which is mostly how we got into this mess we find ourselves in.
As for player sales, the amortised the player transfer costs over 5 or 6 years so if they sold a player they would have to recognize the remaining 4 or 5 years of the costs now, This is why they sold Mason Mount, he cost them nothing so it was 100% accounting profit.

This exactly why football needs cleaning up, it is not acceptable to have two sets of financial rules governing what is effectively the same competition. IMO, the whole financial profit and sustainability governance should be run by an independent company that is dedicated to monitoring these processes across the whole 92 clubs and can flag up possible issues and breaches before they become serious.
Wouldn’t you have to apply it across the entire pyramid. There is automatic promotion and relegation the whole way down so the National League is as much the same competition as the FL as the FL is the same as the PL.
I think I'm right in saying there's no FFP in the National League, so clubs in the NL can spend as much money as they like to build a squad and shoot up the FL once they get there (sanctions seem to be limited to a transfer embargo in L1/L2). You're right to say it needs to apply to the entire pyramid.
Ideally, there would be limits on certain types of expenditure based on revenue - with exceptions to infrastructure and youth development - on top of rules to take ownership away from owners that break rules. That latter point is why you'd need government regulation to make that legal.
I also think the women's game should be regulated in a similar way, as it seems to be going much the same way as the men's game in terms of excessive expenditure relative to the revenue generated.