Silvio Dante Posted September 23, 2022 Report Share Posted September 23, 2022 If you’ve got five minutes this is well worth a read over the challenges of running a non parachute club. Lots of synergies with us and notably, the owners have to fund a £12m shortfall each year unless there is a trading profit. So, basic maths says that they will always be at the edge of failing Financial Fair Play. Also noting what’s holding them back from Cat 2 academy status (no indoor facility anywhere in the town) 6 1 Quote Link to comment Share on other sites More sharing options...
East End Old Boy Posted September 23, 2022 Report Share Posted September 23, 2022 8 minutes ago, Silvio Dante said: If you’ve got five minutes this is well worth a read over the challenges of running a non parachute club. Lots of synergies with us and notably, the owners have to fund a £12m shortfall each year unless there is a trading profit. So, basic maths says that they will always be at the edge of failing Financial Fair Play. Also noting what’s holding them back from Cat 2 academy status (no indoor facility anywhere in the town) Thanks for sharing, could almost have been written for us! Quote Link to comment Share on other sites More sharing options...
Northern Red Posted September 23, 2022 Report Share Posted September 23, 2022 Interesting stuff, and yes, a lot of similarities with us. Reading the replies to the tweet also shows similarities in that some of their fans really don't get it - "why not gamble and go for it?" etc 4 Quote Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted September 23, 2022 Report Share Posted September 23, 2022 (edited) Had a quick read of it. Good, transparent update. The annual £12m part, would that be Profit and Loss or Cash losses? Two quite different things. Not all costs are xsdand h based and not all cash expenses and gains appear in Profit and Loss. Edited September 23, 2022 by Mr Popodopolous Quote Link to comment Share on other sites More sharing options...
Davefevs Posted September 23, 2022 Report Share Posted September 23, 2022 Football Club….the Holdings is pretty similar. Suggests the £12m is the layman’s view of Turnover versus Staff Costs. But as we know, there are other costs too, almost £7m in Preston’s case. At least they had good sense to have Covid Insurance! 1 Quote Link to comment Share on other sites More sharing options...
And Its Smith Posted September 23, 2022 Report Share Posted September 23, 2022 And a lot of their fans don’t like the owners as they believe they should be spending more money. Probably 30% odd against the owner Quote Link to comment Share on other sites More sharing options...
Davefevs Posted September 23, 2022 Report Share Posted September 23, 2022 Just now, And Its Smith said: And a lot of their fans don’t like the owners as they believe they should be spending more money. Probably 30% odd against the owner Yep, saw the responses. Their fans should take a look at us over the last 4/5 years and see how it can go wrong, and that it takes a long time to turnaround. 2 Quote Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted September 23, 2022 Report Share Posted September 23, 2022 3 minutes ago, Davefevs said: Yep, saw the responses. Their fans should take a look at us over the last 4/5 years and see how it can go wrong, and that it takes a long time to turnaround. I think they have missed the boat a little to an extent, time was they were in quite a good FFP position, another striker or similar at a key time when they were stronger play-off contenders could have pushed them on. A limited gamble. Certainly not to go for it like we did though, let alone all those who failed FFP! 1 Quote Link to comment Share on other sites More sharing options...
Son of Fred Posted September 23, 2022 Report Share Posted September 23, 2022 4 hours ago, Northern Red said: some of their fans really don't get it - "why not gamble and go for it?" etc Thick as mince..... 1 Quote Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted September 23, 2022 Report Share Posted September 23, 2022 (edited) Far from unique to Preston, most probably all clubs will have a section of fans who don't quite 'get it' in terms of the financial facts. We have some, but then again if Everton can write off £170m to Covid in a mix of lost revenue and add-backs and seemingly get off scot free...how can others be punished under fundamentally the same rules for minor to moderate breaches? Different debate I'll grant you... Edited September 23, 2022 by Mr Popodopolous Quote Link to comment Share on other sites More sharing options...
RoystonFoote'snephew Posted September 23, 2022 Report Share Posted September 23, 2022 Interesting read. I like Son of Fred's 'thick as mince' comment. That's a new one for me. 1 Quote Link to comment Share on other sites More sharing options...
Bristol Oil Services Posted September 23, 2022 Report Share Posted September 23, 2022 4 hours ago, Northern Red said: Interesting stuff, and yes, a lot of similarities with us. Reading the replies to the tweet also shows similarities in that some of their fans really don't get it - "why not gamble and go for it?" etc 41 minutes ago, Son of Fred said: Thick as mince..... Would you say football, or football clubs, is/are good at communicating reality though? Up until very recently? Quote Link to comment Share on other sites More sharing options...
Midred Posted September 23, 2022 Report Share Posted September 23, 2022 Out of interest have the ffp rules ever been changed to allow the mere mortals in ths championship to compete with the parachute payments for the ex premier league clubs? Quote Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted September 23, 2022 Report Share Posted September 23, 2022 (edited) 19 minutes ago, Midred said: Out of interest have the ffp rules ever been changed to allow the mere mortals in ths championship to compete with the parachute payments for the ex premier league clubs? No, this is an increasing bone of contention too. Basically I had a solution which wasn't to abolish them as such but to have some combination of ring fencing to pay non footballing costs and indeed to exclude from FFP the amount that exceeds Solidarity Payments. Say a Championship regular gets £6m in Solidarity Payments but a side coming down in Year 1 don't get them but instead get £45m in Parachute revenue. Part of my solution would have been, count that portion worth £6m towards FFP and exclude the other £39m. Big difference I expect...thought this up a couple of years ago. It would help with financial stability, whereas allowing clubs to ramp up to the gap would a) Exclude some and b) Increase the risk of catastrophic failure IMO. Combine that with the financial controls we have right now, and it would put a huge hole in the business model clubs who yoyo. It would restrict expenditure on fees, wages etc. I might actually do some research on relegated clubs, stripping out Parachute revenue v Solidarity and see how big the FFP shortfall or necessary cuts to expenditure would be. Edited September 23, 2022 by Mr Popodopolous 1 1 Quote Link to comment Share on other sites More sharing options...
Lrrr Posted September 23, 2022 Report Share Posted September 23, 2022 8 hours ago, Silvio Dante said: Also noting what’s holding them back from Cat 2 academy status (no indoor facility anywhere in the town) Probably the only way they could is if they persuaded the university to build one and they have use of it Quote Link to comment Share on other sites More sharing options...
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