Next Saturday's opponents Queens Park Rangers are in a financial morass that make our problems look trivial. With many players, some of them quite useless, on contracts of up to £100,000 a week, they could make losses of £80m in 2012-13. That would then lead to a fine of over £60m under financial fair play arrangements which could wipe out their additional Premier League income: Super Hoops
The CASC Trust's efforts to get The Valley declared an Asset of Community Value appear to have run into some difficulty in the sense that Greenwich Council are taking much longer than the stipulated time to reach a decision. This could just be inefficiency on the part of the Royal Borough, which would not be unknown, but one could speculate that there is opposition in some quarters. Read more here: CAS Trust
5 comments:
As the Mail suggests, the calculation of potential fines is a little complicated, but I think they may have underestimated QPR's potential liability. By my reckoning they'd be fined around £6.7m if they lost £18m this season. Every £1 they lose above that threshold then attracts an additional £1 fine. Hence, if they lost £80m, as per the example in the Mail, the fine would be almost £69m not £62m. Astonishing numbers!!
Two additional points the article chose not to highlight. First, because they've just been relegated, QPR will not be subject to the FFP rules (i.e. an embargo on Player registrations) if they stay in the Championship. Will 'Arry be told to sell players in January and to stop trying to win promotion?!!
Second, monies paid in fines will be shared by those Clubs that comply with FFP. Could be a nice windfall for Charlton.
Bet there'll be a legal challenge though.
Sorry I haven't read any of the details. Could someone explain why Charlton who perennially make a loss, wouldn't also be subject to a FFP fine? Last I heard player salaries exceeded total revenues at the club. Or is FFP simply based on transfer spend?
Charlton will comfortably comply with FFP. If anybody is fined (this can only happen to Clubs promoted) Charlton will receive a share of the amount paid, along with all other Clubs whose losses are within the FFP limits.
It is now being suggested that the money raised will go to charity:
http://www.financialfairplay.co.uk/latest-news/fair-play-tax-in-championship-to-go-to-charity
Greenwich Council's and particularly its senior members' kenness for their favoured property developers to get what they want is well known. Whether this is hindering the planning department's efficiency can not yet be determined. Never the less one can rest assured that if the council does not come to a decision within the stipulated it will not prevent Greenwich handing down the decision the developers require. Good luck to CAST in getting anything out of the council, they'll need it, in spades...
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