The FFP Hammer: Man City & PSG Hit Hard

soxfan121

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UEFA's settlement offers to clubs found in violation of FFP guidelines are starting to be reported on, and unsurprisingly, Manchester City and Paris Saint-Germain are the (first?) two to be hit, hard, by sanctions. 
 
Please read the link in the first paragraph - it's a decent summary of FFP and how this process is going to work. 
 
Man City is (reportedly) getting a fifty or sixty million euro fine, a reduction in squad numbers for CL play from 25 to 21, and a spending cap ensuring no rise in this season's wage bill. 
 
PSG is set to be hit even harder, with the spending cap, a limiting of activity in the transfer market, a requirement to sell players and the same roster reduction for CL play (25 down to 21).
 
This is huge news and only the first step in what will be a major story all summer, as appeals and rulings are pursued.
 

Vinho Tinto

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soxfan121 said:
UEFA's settlement offers to clubs found in violation of FFP guidelines are starting to be reported on, and unsurprisingly, Manchester City and Paris Saint-Germain are the (first?) two to be hit, hard, by sanctions. 
 
Please read the link in the first paragraph - it's a decent summary of FFP and how this process is going to work. 
 
Man City is (reportedly) getting a fifty or sixty million euro fine, a reduction in squad numbers for CL play from 25 to 21, and a spending cap ensuring no rise in this season's wage bill. 
 
PSG is set to be hit even harder, with the spending cap, a limiting of activity in the transfer market, a requirement to sell players and the same roster reduction for CL play (25 down to 21).
 
This is huge news and only the first step in what will be a major story all summer, as appeals and rulings are pursued.
 
This gives the rumors of Cavani to Arsenal some extra teeth. 
 

cjdmadcow

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I'm pleased to see action rather than the multitude of words that usually emanate from UEFA but lets see how things pan out.

As far as I can tell the fines are spread over a number of years and will be taken from income accrued for competing in UEFA competitions, rather than forcing the clubs to pay now, so that wouldn't necessarily require a club like PSG to consider selling someone like Cavani due to economics.

It will probably take further transgressions and a European ban before it seriously affects either of them.
 

mikeford

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This is hit hard?

No, a ban would be hit hard. This is a slap on the wrist.

Hey guys it's cool to break the rules if you just give us 50m.
 

soxfan121

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A roster reduction (while still fielding 8 homegrown players, mind you) from 25 to 21 and a spending freeze is big, compared to the grand total of previous actions taken (i.e. none).
 
And the PSG article (from L'Equippe) says PSG will have to sell player(s). That's also an unprecedented penalty.
 

Morgan's Magic Snowplow

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soxfan121 said:
A roster reduction (while still fielding 8 homegrown players, mind you) from 25 to 21 and a spending freeze is big, compared to the grand total of previous actions taken (i.e. none).
 
And the PSG article (from L'Equippe) says PSG will have to sell player(s). That's also an unprecedented penalty.
 
This is what could really hurt City.  They already have a problem having very few home grown players and many of them potentially leaving this summer.  If they need to find/keep 8 home grown players and can only have 21 UEFA players total, then that may make for some interesting roster juggling and they may end up needing to sell off a guy like Jovetic before they'd like.
 

soxfan121

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Morgan's Magic Snowplow said:
 
This is what could really hurt City.  They already have a problem having very few home grown players and many of them potentially leaving this summer.  If they need to find/keep 8 home grown players and can only have 21 UEFA players total, then that may make for some interesting roster juggling and they may end up needing to sell off a guy like Jovetic before they'd like.
 
Specifically, the following qualify as home grown for CL roster purposes (and appearances):
Joe Hart(29)
James Milner(29)
Gael Clichy(20)
Joleon Lescott(10)
Jack Rodwell(5)
Micah Richards(2)
Dedryck Boyata(1)
Richard Wright (0)
 
And this article says up to six of those guys could be moving on, along with Pellegrini's thoughts on how it is "impossible" to get value in the domestic (English) transfer market. 
 
Top-flight clubs can register no more than 17 foreign players over the age of 21. City currently have 15 in their squad.
 
 
Richard Wright is the happiest man in Man City blue today - he gonna get PAID to stay. 
 

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soxfan121 said:
 
Specifically, the following qualify as home grown for CL roster purposes (and appearances):
Joe Hart(29)
James Milner(29)
Gael Clichy(20)
Joleon Lescott(10)
Jack Rodwell(5)
Micah Richards(2)
Dedryck Boyata(1)
Richard Wright (0)
 
And this article says up to six of those guys could be moving on, along with Pellegrini's thoughts on how it is "impossible" to get value in the domestic (English) transfer market. 
 
 
Richard Wright is the happiest man in Man City blue today - he gonna get PAID to stay. 
 
Tangent, but I totally forgot Richard Wright still existed and had to look him up to see if he's the same guy who played for Arsenal and Everton 10 years ago.  He is!  He's made 54 EPL appearances in the last 11 years, and has only one season in that stretch where he played more than 15 games (he played 46 times for Ipswich in the Championship in 2008-09).  He's never actually appeared in a game for Man City despite being on their books for two season.  His last appearance for a top-flight club was 3 League Cup games for West Ham in 2007-08.  What a career.
 

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I think UEFA have made a massive mistake here.  They're inviting a legal challenge that I don't think they're going to win.  
 
I don't expect anyone to take me seriously because I'm a City fan, but FFP is really an awful set of rules and I can't for the life of me figure out why anyone outside of the existing top four (now the top 7!) would support this nonsense.  As a City fan, it probably helps more than it hurts, since City now run the kinds of revenues to stay competitive, but this is truly anti competitive stuff.  I don't know why a fan of, say, Villa would want to essentially ever have the door closed on ever really becoming a top of the league club.  The path to the top is now a longer, tough road, and those at the top have it the easiest. 
 
From a City perspective, it makes absolutely no sense to me to have UEFA worried about City's financials, meanwhile United can leverage itself to kingdom come and essentially run on debt.  City made massive investments in both players and infrastructure and will be both profitable and likely become more of the model of what UEFA is looking for out of a club within 5 years in terms of youth development and financial safety.  The squad size restriction, if i'm correctly informed, really only applies to CL matches, so honestly it'd mean having a very thin CL side that would have to pack the bench with players who aren't likely to be able to play.  I'm not sure it would force sales of players so much as it would just substantially weaken City in the Champions League.  The players it may have the biggest effect on are Hart and Clichy, who qualify as HG.  I think Hart's position was getting tenuous prior to his monster performance this past weekend and Clichy was likely going to be moved on.  The team may need to ensure that HG players are kept around at least for the CL purposes.
 
Nonetheless, I don't see City going for deals like this and expect that they'll appeal.  I don't know where it goes from there but I don't think City will be forced to deal with any of this in the upcoming season unless they choose to.
 

soxfan121

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teddykgb said:
I think UEFA have made a massive mistake here.  They're inviting a legal challenge that I don't think they're going to win.  
 
Nonetheless, I don't see City going for deals like this and expect that they'll appeal.  I don't know where it goes from there but I don't think City will be forced to deal with any of this in the upcoming season unless they choose to.
 
Yeah, I think you need to read up on the appeal process. City isn't going to win a "legal challenge" in front of actual EU judges (not UEFA, real, actual judges). Appeals will be heard in June, final decisions issued by August. Decisions to be based on the FFP guidelines; I kinda doubt the "ManU does it too!" defense will be effective.
 

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I can understand why a City supporter would feel like this damages the club's chances.  I've made the same observation about FFP locking in traditionally dominant clubs, especially with international support.  If you can't buy your way to success, how can you attract the overseas bandwagon jumpers that drive long-term commercial revenue?  
 
In looking at both who's negatively affected and the legal issues, though, it's important to remember that this only applies to UEFA competitions, not national ones like the leagues or cups.  Want to play in the CL or EL?  Follow UEFA's eligibility rules.  If you don't want to follow them, you don't have to play.  This is common at every level of a league system with a pyramid.  Don't want to install floodlights?  OK, the FA says, you can play in the 9th tier, but you aren't eligible for the 8th.  No bathrooms for supporters?  You can't be promoted past the 9th tier, either, regardless of what you achieve on the pitch. 
 
And the fact that it's a rule for UEFA competitions only also affects who's really going to care about this.  Villa or West Ham or Southampton would love to qualify for Europe, but they aren't going to run the €45 million deficits it would take to trigger FFP just to get there.  This is going to irk clubs like City and PSG, who have astoundingly wealthy backers, as well as clubs like Inter and Milan, who want to run a large deficit to bridge themselves through what they assume will be down years.  Mid-table clubs in big leagues just won't be willing to take the risk of running those deficits to try to get into the CL.
 

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I think UEFA has the right idea, but it's implementing it poorly due to internal UEFA politics.The best ideas would be either/or a European Salary cap or the ending of money handouts to clubs who qualify to European competition and instead giving those money to all the federations.

I don't mind the incentive to qualify to Europe per se, but the extra money destroys competitive balance within leagues and it's even worse in smaller countries.
 

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Nick Kaufman said:
....the ending of money handouts to clubs who qualify to European competition and instead giving those money to all the federations.
 
This would lead to headlines that the top clubs were considering breaking away and creating their own "Super League". We could all wear flannel and feel like it's the 1990s all over again. 
 

teddykgb

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DLew On Roids said:
I can understand why a City supporter would feel like this damages the club's chances.  I've made the same observation about FFP locking in traditionally dominant clubs, especially with international support.  If you can't buy your way to success, how can you attract the overseas bandwagon jumpers that drive long-term commercial revenue?  
 
In looking at both who's negatively affected and the legal issues, though, it's important to remember that this only applies to UEFA competitions, not national ones like the leagues or cups.  Want to play in the CL or EL?  Follow UEFA's eligibility rules.  If you don't want to follow them, you don't have to play.  This is common at every level of a league system with a pyramid.  Don't want to install floodlights?  OK, the FA says, you can play in the 9th tier, but you aren't eligible for the 8th.  No bathrooms for supporters?  You can't be promoted past the 9th tier, either, regardless of what you achieve on the pitch. 
 
And the fact that it's a rule for UEFA competitions only also affects who's really going to care about this.  Villa or West Ham or Southampton would love to qualify for Europe, but they aren't going to run the €45 million deficits it would take to trigger FFP just to get there.  This is going to irk clubs like City and PSG, who have astoundingly wealthy backers, as well as clubs like Inter and Milan, who want to run a large deficit to bridge themselves through what they assume will be down years.  Mid-table clubs in big leagues just won't be willing to take the risk of running those deficits to try to get into the CL.
 
But even Liverpool would have been dangerously close to running afoul of the rules.  The last I read, they probably would have been OK due to a special clause about previous wages, but only just.  It's really not about how much this harms City, it's a short term speed bump for City.  It's just a really dumb rule and I think it will run afoul of EU law, just like the Bosman ruling did.  I'm not a lawyer, certainly not an EU lawyer, but this is fundamentally anti competitive and is honestly bad for the players, they should be livid about this.  I'll use City as an example, but not only will City be unable to buy new players, restricting the markets for players and probably costing players money, they're also going to have to hold onto players they have no use for, such as Micah Richards or Jack Rodwell, simply because they need to check a box.  Who is helped by this? In what world is going after a club that is well financed and building infrastructure while lowering debts something that makes sense? Every step of the way, it was claimed that if you were trending in the right direction and were seeking to comply, UEFA would be lenient.  City have halved their Y/Y numbers and only run afoul of the laws because of disagreements about the value of some of the sponsorship deals and the like.  City isn't in any way in trouble of hitting solvency issues.  They chose not to finalize deals for Hazard and Isco, as examples, because the camps for these players pushed for additional bonus payments (supposedly) that they couldn't handle within FFP guidelines.  Players like Balotelli, Tevez, etc were all shifted or offered lower wages/had their contracts let run out in order to bring City's wage structure in line with FFP.  All this and UEFA is going to go nuts about a club that's on solid financial footing? I didn't mention United because of a "they're doing it too" type of argument -- I mentioned them because that's a team that leveraged themselves up like crazy, sold themselves on a stock market, and could conceivably actually run into serious financial difficulty.  If UEFA really wants to ensure that the clubs that play in the Champions League are doing it in a sustainable way, then they should be far more worried about clubs like that than they are with PSG or City.  These rules aren't solving the problem they're trying to solve, they're using the threat of worrying about finances to try to ensure that Bayern, Barca, Real, MUFC, et al can always be assured of the continual profits and money of the Champions League.  I'd feel this way if I were a fan of Forest as much as I do as a fan of City.
 
In terms of the appeals process, sf121, I know that there's internal appeals, but I legitimately think this will end up in actual EU courts.  I'm curious as to why you think that is impossible?
 

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Vinho Tinto said:
 
This would lead to headlines that the top clubs were considering breaking away and creating their own "Super League". We could all wear flannel and feel like it's the 1990s all over again. 
 
They would certainly threaten to do so, though I don't know whether they will do so. But the situation right now is disgraceful.
 

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I would really support the idea of giving the money to the federations, provided the federations distributed the money fairly.  I imagine Liga BBVA would find a way to make sure that Madrid and Barca got it all.
 
I also should have added: I think there's a possibility that UEFA is putting out harsh punishments to try to give it teeth and to open a negotiation that will end up much more subdued.  So I'm probably premature in saying that I think this will go to court, maybe this is more about the PR game than anything else.
 

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I'm going to use extremes here to explain my point, so bear with me.
 
If my understanding is correct, if have a 50k seater stadium, generate enormous amounts of tv and commercial revenue and charge the highest ticket prices in the world, then you can spend every penny generated in buying superstar players on the highest wages. What you can't do is all of the above but have the Sultan of Brunei decide that he'd like his name on the stadium and will pay £1billion a year for the privilege, way over market valuations for such a deal?
 
Sounds fair enough to me. If you generate millions you can spend millions, just don't try and con the system by suggesting that a £400M stadium sponsorship from an associated company is fair market value.
 
To suggest that trying to level the financial playing field is anti-competitive is sure something coming from one of the biggest financial dopers in football.
 
In summary, if ManU generate £500M then fair enough spend as much as you want of it but if ManCity only generate half of that and expect an owner with deep pockets to supply the rest in order to 'compete', then tough shit. In the real world, if my LFC generates 10x as much income as Southampton then we can spend 10x as much on players and they have to find another way of competing, which they have been doing successfully with one of the best youth & academy systems in the country.
 
As much as I'd be willing to give it a try there's ZERO chance of any salary cap in the EU due to employment legislation, so you can forget that idea. They may not have got it right yet but at least UEFA is trying to do something.
 
Ramblings & musings over, for now.
 

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I'm not a legal expert by any means, but I don't see what legal structure a club would have to challenge UEFA.  The Bosman case centered around a player being told he couldn't sign a contract with another club without his prior club receiving compensation, which was a violation of EU laws requiring open markets.  Players like Rodwell and Richards are under contract.  They're getting paid.  They're free to move when their contract runs out.  City are free to enter whatever contract they like, with the caveat that if they want to play in UEFA-sanctioned competitions, they have to follow certain rules to get their annual UEFA license to play in those competitions.  They aren't required to enter those competitions, and unless they can convince a court otherwise, they don't seem to have a right to enter without following UEFA's rules.
 
I'll admit to being concerned about Liverpool running afoul of FFP in a manner similar to Inter and Milan.  And to be clear, I'm not defending FFP.  I do think something needs to be done to prevent clubs from trying to buy their way into the elite for the same reasons PEDs are banned--when permitted, they become a de facto requirement, and then clubs or people destroy themselves trying to compete.  However, I'm unconvinced UEFA FFP will work for both technical and governance reasons.  
 
I don't follow your argument about Man U.  I love to hate them as much as anyone, but the Glazers' financial model is pretty standard (albeit high-risk) in the business world.  It runs a risk of failure, but not because of an attempt to spend on resources to compete.  We could probably agree the model is hurting them on the pitch, in fact.  Redirecting resources has taken them out of the CL.  Is mismanagement UEFA's problem?  I don't see how it is.
 
 
One thing worth noting about FFP...it does make exceptions for long-term infrastructure, so true investments in growing the club into a larger, sustainable entity shouldn't show up as negatives.  The contributions Mansour has made on that score aren't what got City in trouble.
 

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I basically agree with Teddy.  FFP is a dumb rule.  Its very European in a sense, all about protecting the historical aristocracy against potential challenges from "new money."  If they wanted to create "financial fair play" (which I would be all for), then they would create some kind of formula to cap the total player compensation for a team's roster in UEFA competitions.  Potentially, that could create an awesome competition in which 15-20 teams, including some from outside the Big 4 leagues, were legitimate UCL contenders in any given year and you could see clubs like Porto or Ajax making deep runs.  But of course that's not what the biggest clubs want.  FFP is like a wet dream for clubs like Real - they get to kneecap the new money challengers AND to implement a set of rules that offers a little public relations cover for their outrageous spending.
 

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DLew On Roids said:
One thing worth noting about FFP...it does make exceptions for long-term infrastructure, so true investments in growing the club into a larger, sustainable entity shouldn't show up as negatives.  The contributions Mansour has made on that score aren't what got City in trouble.
 
From what I've read, City's investments in stadium, training ground and youth development mitigated their punishment, whereas PSG's lack of investment on those fronts caused them to have more. From this cheat sheet
 
 
 
 Some costs incurred for spending on infrastructure, like a new stadium or training facility, are generally not counted toward FFP's "break-even" requirement. Neither are some expenses for youth development and other costs, which UEFA considers "virtuous" as a long-term investment in the game. Once the auditors looked at those, they reworked the numbers and found that more met the requirement.
 
I think what'll happen is what usually happens, like with Barcalona's troubles, the body comes in with a stiff punishment, there's an appeal, and the punishment is lowered.
 
Le Parisien says sources say there will be a eight-figure fine and PSG will have a year to get their finances in line with FFP. Here's the link (it's in French)
 
Also, for UCL squad-size, is that 21 players per game that can be rotated, or 21 for the entire campaign?
 

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Infield Infidel said:
 
From what I've read, City's investments in stadium, training ground and youth development mitigated their punishment, whereas PSG's lack of investment on those fronts caused them to have more. From this cheat sheet
 
 
I think what'll happen is what usually happens, like with Barcalona's troubles, the body comes in with a stiff punishment, there's an appeal, and the punishment is lowered.
 
Le Parisien says sources say there will be a eight-figure fine and PSG will have a year to get their finances in line with FFP. Here's the link (it's in French)
 
Also, for UCL squad-size, is that 21 players per game that can be rotated, or 21 for the entire campaign?
 
Clubs submit squads per phase (group, knockout).  So you could swap players on and off the 21 at different points during the season.
 
MMS's preferred scenario would almost certainly lead to a Superleague, since then the shackles would be on marketable clubs and their dominance would be threatened.
 

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Even if you put a pan european salary cap, it won't do much to the big teams. It will just make the playing field slightly more even. If the salary cap is at 150 million, sure Real and Barcelona would spend less, but Ajax and Benfica would still spend 50-70 million per year; they will just have a bigger chance to have a big year that would allow them a deep run.
 
Moreover, even I wouldn't want total parity like American football. I don't particularly care for let's say Rubin Kazan to make a deep run. I just want to lower the inequities both within Europe and within domestic leagues. It's the domestic leagues that are being destroyed by Champions League and this is what needs to be fixed primarily.

Like I said. Give Champions League money to federations and let them spread them around if not equally on a scale. As is, a team like let's say Olympiacos -or even Benfica, Porto, Rangers, Celtic- who already enjoys a financial advantage gets an extra boost and that in turns installs him as semi-permanent champion.
 

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I'm waiting for more details to come out. I haven't seen anyone lay out exactly how UEFA is treating PSG and MCFC's "sponsorships" from related companies. Is some of the revenue allowed, or is it all disallowed? City has multiple sponsorships from related companies. Have they all been affected?

I never saw how City's business model could possibly work without UEFA allowing them to cook the books in the form of sponsorships that are really cash injections from their owners. They simply don't have the matchday revenue or strength of brand to support that massive wage bill otherwise. And half of PSG's claimed revenue was from that Qatari Tourism sponsorship. They aren't continuing as a big club without it.
 

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It all comes back to big money killing football. No more will a team like Derby or Leeds win the league, and for things like that the Purity Of The Game has been tarnished. I'm all for bringing in the best players in the world, but not if it means maybe 8 teams max will ever win the PL again.
 

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Yeah, I can see a Blackburn reference there but Leeds? 
 
And really, only ~8 teams can win the EPL now. Only 3 or 4 can win La Liga. A similar number in the Bundesliga. Is Serie A deeper? I know our resident Portugal watcher says that's a 4 team league. 
 
FFP doesn't solve any problems but something is better than nothing. If Man City and PSG can be kept from inflating salaries and fees with their phony "sponsorships" it levels the playing field, albeit only a little. But again, little is better than none.
 

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soxfan121 said:
FFP doesn't solve any problems but something is better than nothing. If Man City and PSG can be kept from inflating salaries and fees with their phony "sponsorships" it levels the playing field, albeit only a little. But again, little is better than none.
 
I tend to fall on teddy's side. Man City was not a power since the 70s. Their fate is supposed to be ManU's punching bag. Because of the massive investment from the UAE, they are now a power in England and Europe. Same thing with Chelsea. I really don't see how limiting capital investment levels the field. Most of the leagues we follow have been won by a small number of teams. The EPL is about as competitive as a league in Europe gets, but it's still been won by just 5 clubs. I think PSG and Man City are getting punished for dropping all of this cash now vs 10-20 years ago. 
 

soxfan121

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Vinho Tinto said:
 
I tend to fall on teddy's side. Man City was not a power since the 70s. Their fate is supposed to be ManU's punching bag. Because of the massive investment from the UAE, they are now a power in England and Europe. Same thing with Chelsea. I really don't see how limiting capital investment levels the field. Most of the leagues we follow have been won by a small number of teams. The EPL is about as competitive as a league in Europe gets, but it's still been won by just 5 clubs. I think PSG and Man City are getting punished for dropping all of this cash now vs 10-20 years ago. 
 
You are undoubtedly correct about the bolded - but the failures of teams like Leeds (and Portsmouth, etc.) are why FFP exists. 
 
The more illustrative example is either Malaga or Anzhi. Both were financially inflated clubs that saw their first adversity and had the owner run away, forcing player sales and a tumble down the standings. 
 
And yeah, it probably is unfair that Man City will get whacked harder than Chelsea simply because their transgressions are more recent. But let's not lose sight of the fact there are transgressions. Man City cannot hope to comply with FFP regulations without the owner's limitless pockets. Those are the rules and everyone knew them. Circumventing them with "sponsorships" that are thinly veiled cash injections from the owner is a violation of those rules. And if you break the rules, you're gonna get a penalty. 
 

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soxfan121 said:
Yeah, I can see a Blackburn reference there but Leeds? 
 
And really, only ~8 teams can win the EPL now. Only 3 or 4 can win La Liga. A similar number in the Bundesliga. Is Serie A deeper? I know our resident Portugal watcher says that's a 4 team league. 
 
FFP doesn't solve any problems but something is better than nothing. If Man City and PSG can be kept from inflating salaries and fees with their phony "sponsorships" it levels the playing field, albeit only a little. But again, little is better than none.
 
Blackburn is a bad reference too because they had a millionaire throwing money when they won their title.
How about Nottingham Forrest? Or Aston Villa? Or Everton?
 
As for the rest of the leagues, I think you re being an optimist the number of teams who can win. Atletico is a fluke. La Liga has been a 2 team league for the past 10+ years. Portugal is a 2 team league, Sporting hasn't won in ages, who is the fourth team who could challenge? Braga?
 
Bundesliga is an interesting case, because it's got a version of FPP rules, basically that everyone needs to have their books balanced. The thing is that Bayern towers above everyone else, but beneath her, there's a ton of parity, so you end up seeing Bayern winning every other championghsip or 2 out of 3 and someone beneath her having a good year and or winning it. Sometimes it's Dortmund, others it's Verder or Stutgardt or Schalke (who's never won though).
 

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Vinho Tinto said:
 
I tend to fall on teddy's side. Man City was not a power since the 70s. Their fate is supposed to be ManU's punching bag. Because of the massive investment from the UAE, they are now a power in England and Europe. Same thing with Chelsea. I really don't see how limiting capital investment levels the field. Most of the leagues we follow have been won by a small number of teams. The EPL is about as competitive as a league in Europe gets, but it's still been won by just 5 clubs. I think PSG and Man City are getting punished for dropping all of this cash now vs 10-20 years ago. 
 
First of all, throwing money to buy players isn't capital investment. Second, like soxfan said, the trouble is that with the competition being fierce and qualification to Europe offering such plush financial rewards many teams borrow in the hopes of getting that reward. This is a self-defeating strategy since only one or two can take it and the rest stay drowned in debt.
 

mgoblue2

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Vinho Tinto said:
 
Using Leeds United as an example of a financial melancholy good ol' days is pretty funny. 
 
Admittedly, I'm unfamiliar with the stuff they did. I was referencing the 60s and 70, more even talent distribution then.
 

SoxFanInCali

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Leeds were in the semifinals of the Champions League in 2000-01. They took out out large loans after the CL semifinal appearance against future Champions League revenue that never materialized when they didn't qualify. To pay the loans, they basically sold every good player they had (Rio to Man Utd in 2002 probably being the most prominent sale), as well as Elland Road in 2004.  They were relegated in 2003-04, with a second relegation to League One in 2006-07. They are back in the Championship now but are at a huge disadvantage in generating revenue because they don't own their stadium.
 

teddykgb

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soxfan121 said:
 
You are undoubtedly correct about the bolded - but the failures of teams like Leeds (and Portsmouth, etc.) are why FFP exists. 
 
The more illustrative example is either Malaga or Anzhi. Both were financially inflated clubs that saw their first adversity and had the owner run away, forcing player sales and a tumble down the standings. 
 
And yeah, it probably is unfair that Man City will get whacked harder than Chelsea simply because their transgressions are more recent. But let's not lose sight of the fact there are transgressions. Man City cannot hope to comply with FFP regulations without the owner's limitless pockets. Those are the rules and everyone knew them. Circumventing them with "sponsorships" that are thinly veiled cash injections from the owner is a violation of those rules. And if you break the rules, you're gonna get a penalty. 
 
Nonsense.  Man City CAN hope to comply without the owner's limitless pockets.  They're likely to turn a profit next year.  The Etihad deal is probably undervalued and complies with any definition of a "related party" that is used in actual accounting.  Are we going to go after Liverpool and their Warrior deal next? 
 
And are we trying to prevent Leeds or are we trying to stop people from buying a title? If UEFA implemented rules where clubs couldn't take out massive amounts of debt that threatened the very viability of the club, then FFP wouldn't be so stupid.  Instead, it's trying to prevent rich people from deciding how they spend their money.  MCFC was nearly bankrupt BEFORE the Sheikh took over. If he left tomorrow, the club would be far better off than they were beforehand.  The club doesn't have debts and isn't one bad season away from all of its finances unraveling.  If we want to implement rules that prevent teams from senselessly overleveraging themselves then I'm on board. 
 
Malaga and Anzhi are in many ways closer to Leeds than anything else, the owners couldn't afford what they tried to do and the team suffered.  At the same time, I don't know why we're trying to legislate against this particular form of poor management.  Every year, clubs pay a heavy price for their owners acting like idiots and employing the wrong people, spending too much money on the wrong players ,etc.  Most teams would really struggle if their owner decided to walk away.  MCFC and PSG aren't two of them, for different reasons.
 
This is the way the sport is architected.  You can be in Div 2 and you can go all the way to Europe.  It'll take luck, money, and effort, but it's possible.  Any team that achieved greatness essentially did all 3, and now those teams are trying to make it impossible for them to be replaced.  In relative dollars, MUFC or Liverpool,outspent their rivals and won the league.  Bayern outspent their rivals, as did Barcelona and Real Madrid.  (In Italy, you apparently outspent your rivals on referees ).  This has always been true to some extent, and occasionally a club brings through some youth that allows them to spend a bit less to stay at the top.  
 
I mean, I get it.  I don't expect people to like having City, Chelsea, PSG just show up and buy a bunch of players and crash the party.  If it were more viable to have a salary cap, then that would obviously level the playing field quite a bit.  But this system is just setup to ensure that the same teams compete every season.  The days of teams supporting themselves on the backs of matchday revenue are pretty much over.  All of the top teams rely on the TV Sponsorship and CL money to be able to afford the ridiculous wages and transfer fees that are at stake in world football.  FFP practically guarantees this money to the established teams who need them to survive.  It does nothing but exclude the others from ever hoping to get there.  If you want an example, watch what happens at Southampton this summer.  They just had a great season, and that team is going to get picked apart.  If the ownership even wanted to try to build on what they've done, they'd have no shot of increasing their players wages to what they'd get elsewhere while buying a few more players to make a push.  In many ways, as I said in another thread, this is what makes Atletico's run so interesting.  They sold and sold and sold some more but managed to reinvest well to build over time a team that could challenge at the highest level, albeit surprisingly.  The question is, will they be forced to sell again and can they reload well enough to keep it going?
 

DLew On Roids

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The Anzhi situation is nothing like Leeds. The owner was a potash magnate who finance the club off his billions in holdings. When the potash market tanked, his holdings suddenly lost most if their value, and he decided to peace-out.

Granted, the demand for potash seems a lot less certain than demand for oil, but if the oil market went to $20/barrel, every petro-club would find their owners disappearing as well. City and PSG are basically Anzhi only with more stable backers.