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FFP - Financial Fairplay 2.0

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FFP - Financial Fairplay 2.0

Postby Coman » Sun Jan 21, 2018 12:59 pm

Culture PSG : A limit between sales and purchases in the Financia Fairplay 2.0 ? [source]


Regularly mentioned, financial fair play 2.0 is revealed a little more in the columns of the newspaper Le Parisien. A limit between sales and purchases on the transfer market is mentioned, in particular, up to € 100 million.

Set up for several years by UEFA, Financial Fairplay has been based on a simple principle since the beginning: clubs can not spend more money than they earn. After several years, a 2.0 version of the device has been in the cards for several months, the initial version has only succeeded part of its initial task, namely reduce debts. In the transfer market, prices have only gone up in recent years.

Towards a limit between purchases and sales

The newspaper Le Parisien has obtained information about the famous version 2.0 of the FFP and, if the founding principle remains the same with still this famous limit of 30M € deficit allowed, a big change is on the program. There will now be a balance to be respected between purchases and expenses in the transfer market and it can not be negative by more than 100M €. The example of the last summer of the PSG is given to illustrate. The Paris club has spent 420M € on the summer transfer window and, with this new rule, he should have sold for at least 320M € to be in good standing compared to the famous 100M € authorized (420-320 = 100). (Me : while PSG spend €420M net, Bayern spend €84M net)

According to the regional papers, French clubs do not really welcome this major point of reform of the FPF because it should necessarily lower the prices of players in the transfer market. But L1 clubs are often big sellers, so there will be less money going into the coffers. On the side of the PSG, this also strongly limits the investment capacity during the next mercatos. Fortunately for Paris, it was last summer that the great maneuvers took place.

Not the only rule of FFP 2.0

In addition to this very important new rule, other measures are mentioned in this Financial Fair Play 2.0. In particular, it is a question of controlling the indebtedness of the clubs whereas there is currently no rule at this level. Another point raised, the possibility of limiting the workforce to 25 professional players only. If the great extent of the FFP 2.0 could interfere with PSG, these two points are not really blocking Parisian side. For other large European clubs with huge numbers, it is however a different matter.

Another of the measures envisaged is much more boring for the PSG since it concerns the definition of "related parties". If this measure is still under negotiation as the regional daily recalls, this particularly affects the Parisian club because many of its sponsors share a more or less direct link with the Qatari owner of the club. Indeed, QTA, QNB, Ooredoo or beIN Sports are more or less directly related to QSI, the majority shareholder of PSG. The general rule, however, is that the contracts between the club and related parties can not represent more than 30% of the club's turnover (Me : for Bayern is easily less than 30% with Audi, Adidas and Allianz around €100M for a €600M turn-over)

Towards a very fast implementation?

It remains to be seen when all these possible measures will be put in place and UEFA does not seem determined to drag along the way. The project must be voted on the executive committee of May 24 and the implementation will be done next season. Sign that the project is hot, the board of the European Association of Clubs (ECA) is to meet this Monday, including with Nasser Al-Khelaïfi and Jean-Michel Aulas, and again Tuesday at the headquarters of UEFA.
Last edited by Coman on Sun Jan 21, 2018 1:44 pm, edited 1 time in total.
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Re: FFP - Financial Fairplay

Postby tflags » Sun Jan 21, 2018 1:11 pm

Coman, there are at least two FFP threads (that I can remember off hand) already. This is a great topic.

Do you mind editing the title of your post to FFP 2.0 just to distinguish the topics from the ones already existing? 8)
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Re: FFP - Financial Fairplay 2.0

Postby Valerio » Sun Jan 21, 2018 3:09 pm

This looks stupid honestly.
FFP came to be to stop teams from spending more than what they can/gain.
Not to stop rich to use their money how they wish.

The problem in football is teams that goes bankrupt or hugely indebted not those team who has money to waste.

I'd change FPP with a "you need to prove you have the money" from the owner.
No banks money.

Else whoever buy a football team is banned from improving.
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Re: FFP - Financial Fairplay 2.0

Postby FCBayernMunchen » Tue Jan 23, 2018 3:59 pm

I'm not sure what to think about this. Years ago, I argued on the forum blog that FFP plays right into the hands of the status quo. I'm not sure if this is any different.

There is certainly one good thing about it, and that is reducing the effect the big discrepancy in TV money between different leagues has. If it does end up driving transfer fees down so as not to exceed the €100m deficit, so more clubs can afford the best players, that is also good, but somehow I doubt it.

I wonder whether this could pose legal problems as well. Imagine you're a player and get a multimillion offer of a lifetime, worth much more than your current deal. Your new employer has the money to buy out your contract without going into debt... but can't do so because they would have a deficit greater than €100m in that transfer window. I can see it being challenged.
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Re: FFP - Financial Fairplay 2.0

Postby MUTU » Tue Jan 23, 2018 4:09 pm

If they limit the transfer fees, clubs will end up with a lot of money in their hands, which will end up meaning that salaries would go up.
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Re: FFP - Financial Fairplay 2.0

Postby FCBayernMunchen » Tue Jan 23, 2018 4:51 pm

MUTU wrote:If they limit the transfer fees, clubs will end up with a lot of money in their hands, which will end up meaning that salaries would go up.

That's a good point too. Makes it even worse for smaller clubs who will hardly be able to convince players even if they can convince clubs. On the other hand rich clubs will have no reason not to pay higher wages because if they can't spend the money on transfer fees it's going to be paid in taxes anyway.
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Re: FFP - Financial Fairplay 2.0

Postby Valerio » Wed Jan 24, 2018 9:28 am

FCBayernMunchen wrote:
MUTU wrote:If they limit the transfer fees, clubs will end up with a lot of money in their hands, which will end up meaning that salaries would go up.

That's a good point too. Makes it even worse for smaller clubs who will hardly be able to convince players even if they can convince clubs. On the other hand rich clubs will have no reason not to pay higher wages because if they can't spend the money on transfer fees it's going to be paid in taxes anyway.

next move will be salary cap then!
After that they'll buy players trough sponsorship deals
So it will sponsors to move players.

That's why I think it's stupid.
The ffp came to be to stop clubs from spending more than what get gain.
Going into huge debts and then bankrupt.
Not to stop those who have the money to use them.
That's the point.


But if want make football "fair" then you should rewrite the whole system to look more at the american way with NBA.
But it's easier to make a super league with the biggest and richest teams.

The only problem with the super league is that english want 4-5spots when Spain,Germany,France and Italy will most likely get 3
Altetico-Real-Barca , PSG-Monaco-Lyon , Bayern-Dortmund-Lipsia , Juventus-Roma-Napoli

While english would want ManU-ManC-Chelsea-Liverpool-Arsenal and probably also Tottenham.
At this point other leagues would want to bring in 1-2 more teams and it will be too crowed to play alongside the local football league
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