Quote:
Originally Posted by Locke
What spurred this on all of a sudden? Teams have been financially doping for decades, why now?
Also, I'd love more info, do you have any links?
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That’s the video and just remember you were warned about it being all about Spurs! I think the FFP/PS stuff starts at 9:20 and he goes through a lot of links. His thought (which makes a lot of sense from a finance perspective) is that clubs will be forced into selling homegrown players to deal with this. The rationale is that with a homegrown player, it’s pure profit. A player you bought say a year ago for £50m on a five year deal and sell for £50m today is only going to net you £10m (due to the amortization). So for us, Harry Kane being sold was £100m that is pure profit.
This is also why you’re seeing loans and loans with the option more frequently. Clubs aren’t necessarily in enormous breaches, but they are in positions where they have to be very careful. He goes through several stories where people like Unai Emery, Eddie Howe and others almost come right out and say they have to sell to buy, but what they leave out is that they need to sell homegrown assets or assets where the contracts are largely amortized.
And, what’s spurred this all of a sudden is a few things. First, the Everton scenario where they were in breach and the points deduction would’ve meant relegation. That’s a big problem. Coinciding with that, is there is a PL oversight office coming in the UK. They have to get things in order and it’s not optional. So, accounts are due by Dec 31, they look through and make their assessments with the report ostensibly due today (Jan 14), but of course it’s Sunday. And I believe that this is actually coming down across Europe and it’s wider than the PL…but that last part I’m not 100% sure. I honestly just care about PL and only watch other stuff here and there and don’t pay a great amount of attention.
tldr; tomorrow morning could be interesting. It could also be some bluster and just smaller clubs get whacked while the big offenders are unscathed.