07 Sep 2017 10:49:13
Question for ed2 if I may, with la Ligas top guy moaning about psg buying neymar and complaining about city and peg. How enforceable is ffp. I get that there is certain criteria to adhere to but surely this can be manipulated. Whose to say how much a sponsorship deal is worth from a related company or indeed the parent company. Transfer pricing etc can look at this but as I say whose to say what a fair market value is. Surely then ffp is a waste of time as there are loopholes for rich organisations/ conglomerates?

{Ed002's Note - FFP is enforceable and working OK. Clubs abuse it and they get fined, banned etc.. I am not sure how you think it can be manipulated - everything is decalred and accounted for. There are no loophoes.}

1.) 07 Sep 2017
07 Sep 2017 13:50:51
it can be abused by artificially boosting the revenues in the club by setting up a sponsorship deal between the club and one of the related companies. This then makes the business seems profitable and negate any FFP issues. Easily done. I'm sure the guy from la la liga was saying that PSG had declared more sponsorship income than united, which is rubbish, they'd never get that externally. Accounts can easily be manipulated, especially when part of a larger organization.

{Ed002's Note - no Tom, that is all controlled.}

2.) 07 Sep 2017
07 Sep 2017 18:01:38
Thanks for taking the time to answer my questions, but how would they control it? It happens everyday in practice with other, non football related organisations. As I say, who can say what a fair sponsorship value is. Only asking out of interest. I'm more passive in my view of it (oil rich companies buying football clubs and ploughing money in) started with Chelsea, then city and now Psg. Was Monaco at one point but they moved to investing in youth (smart move based on the business they did this summer) . There was also that Russian team (I forget their name) that matched Messi's release clause.

{Ed002's Note - All of that was before FFP Tom. Cliubs who have abused it (Manchester City and PSG from your list plus dozens of others) have been penalised. I don't think you understand about the sponsorship money.}

3.) 07 Sep 2017
07 Sep 2017 18:39:56
Probably not. I guess all I was saying is that if a club is having a problem balancing their books it would be easy for them to recharge into the parent company (or a related company) for something such as sponsorship or management charges or something along those lines to increase revenue and therefore the bottom line, so they comply with ffp. I just don't get how that would be controlled. But I guess I maybe missing something.

{Ed002's Note - No, it doesn't happen like that and nor can it. You are indeed missing something.}

4.) 07 Sep 2017
07 Sep 2017 18:59:54
Thanks for taking the time to answer my questions, much appreciated.

{Ed002's Note - always welcome Tom