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How will the new financial restrictions rules impact on City in the near future?

Can someone explain it to me in lamens terms please as pundits & finacial experts alike are all saying we're fucked as we currently run at a £200M loss and we need to get it down to a 45M Euro loss at the most to enable us to play in any European competition.

They are also saying that Barca & Real Madrid, as it stands, would struggle to comply with this new ruling and i just cannot see a CL competition without those two.

Nobody knows how City are going to deal with it but as they've just added tens of millions to the wage bill, I'll trust that they know.

After this season the first stage is implemented, clubs running at a loss from this point must show a progression towards reducing turnover loss. In 5 years time clubs that are not running a profit and continue to spend freely may or may not be invited into the Champions League.

City have applied all the transfers and wages for the contracts to this season's books in order for Milner, Silva, Tevez, etc to appear to be playing for free for the following four years as far as the accounting is concerned.

Ah you've done it now, here we go again.

Basically we can spend what we like until the 2011/12 season accounts, when our spending will be monitored. After that the restrictions start to kick in.

However as you say hardly anyone is going to meet this, so it will be interesting to see what position Platini and co take when all the big clubs are fucked, and legal challenges kick in against an insane rule that forbids new capital coming into football but encourages 'serviceable' loans and therefore money going out!

Inter, Real, City and Chelsea are all kept going by external capital of one form or another. Everyone else is indebted to the eyeballs!

Oh and Gary and Khaldoon have a 'business plan', so everything will be fine!

Can't Mansour just dump 1bn in Citys bank account?

saulman wrote:Can't Mansour just dump 1bn in Citys bank account?

I'm sure this will happen in one form or another.

City never mention these rules, so either they know they will be fine, or they dont care.

Another big earner - Advertising. Sheikh Mansour turned up on Monday and gave us the official seal of approval, not just by him, but by the whole of Abu Dhabi. We are not just there to show Abu Dhabi in a good light, we are there to advertise their products, services and resources, which has been shown by the number of sponsors from the region willing to throw money into the club. This will continue, and now the man has been himself, I can see many more of the regions business' doing exactly the same with a very decent return.

Slim wrote:After this season the first stage is implemented, clubs running at a loss from this point must show a progression towards reducing turnover loss. In 5 years time clubs that are not running a profit and continue to spend freely may or may not be invited into the Champions League.

City have applied all the transfers and wages for the contracts to this season's books in order for Milner, Silva, Tevez, etc to appear to be playing for free for the following four years as far as the accounting is concerned.

Didn't think it included wages, just transfer fees? Otherwise we'd have no wage bill!!

This seems to be the reason for the "Kamikaze" spending. We now have a quality squad which has all been paid for, so when the new rules kick in we will not be amortising players during the peiod which counts. So often when a player is bought it goes on the accounting as paid over the time of the contract. So 25 mil player over 5 years = 5 mil per year on the books. Under that system there would be player costs on the books vene when they have been with us for a couple of years and this would be bad. AS far as I can tell City have put all the costs on this year (which does not count for teh new rules which don't start till next season). It also has the massive advantage that if we then sell one of these highly expensive players from next summer on it all goes into the plus part of the account. So assuming we get the same money for each player we bought this year (unlikely but just as an example) it means the Shiek has dumped 125 mil onto Citys books in a completely legal and acceptable way.

Add in the developments around the ground which will count towards income and with any luck we should be OK. It does mean we really need top 4 this year though to sustain the wage bill.

The sheik is going to setup his own champions league competition and stick two fingers up to Eufa

Bluez wrote:This seems to be the reason for the "Kamikaze" spending. We now have a quality squad which has all been paid for, so when the new rules kick in we will not be amortising players during the peiod which counts. So often when a player is bought it goes on the accounting as paid over the time of the contract. So 25 mil player over 5 years = 5 mil per year on the books. Under that system there would be player costs on the books vene when they have been with us for a couple of years and this would be bad. AS far as I can tell City have put all the costs on this year (which does not count for teh new rules which don't start till next season). It also has the massive advantage that if we then sell one of these highly expensive players from next summer on it all goes into the plus part of the account. So assuming we get the same money for each player we bought this year (unlikely but just as an example) it means the Shiek has dumped 125 mil onto Citys books in a completely legal and acceptable way.

Add in the developments around the ground which will count towards income and with any luck we should be OK. It does mean we really need top 4 this year though to sustain the wage bill.

I think we'll need to build Las Vegas in the car park to sustain the wage bill, not just a few Chump's Lg games. I think we have something up our sleeve.

Ted Hughes wrote:

Slim wrote:After this season the first stage is implemented, clubs running at a loss from this point must show a progression towards reducing turnover loss. In 5 years time clubs that are not running a profit and continue to spend freely may or may not be invited into the Champions League.

City have applied all the transfers and wages for the contracts to this season's books in order for Milner, Silva, Tevez, etc to appear to be playing for free for the following four years as far as the accounting is concerned.

Didn't think it included wages, just transfer fees? Otherwise we'd have no wage bill!!

Correct, a little way we can jump around the system for a few years at least.

Slim wrote:

Ted Hughes wrote:

Slim wrote:After this season the first stage is implemented, clubs running at a loss from this point must show a progression towards reducing turnover loss. In 5 years time clubs that are not running a profit and continue to spend freely may or may not be invited into the Champions League.

City have applied all the transfers and wages for the contracts to this season's books in order for Milner, Silva, Tevez, etc to appear to be playing for free for the following four years as far as the accounting is concerned.

Didn't think it included wages, just transfer fees? Otherwise we'd have no wage bill!!

Correct, a little way we can jump around the system for a few years at least.

I think we have a loophole. Marwood in his interview isn't talking about stopping spending, he's talking about 'tweaking' one or two in the squad. For us to 'tweak' players costs anything between 20 to 150 mil per season because we'll be tweaking the world's best players. The wage bill will also be more than Belgium's. Imo we have a plan for getting money into the club that circumvents these rules; I've thought so all along & nothing we've done changes that. I recon we have a source of income lined up.

Of course we have to do all the other stuff & comply with everything or all the other clubs will kick up fuck, but somewhere amongst it all, we'll get te money in to cover it.

There is a part of the rules which says we can have external income if it is linked to the club.Hence all the proposals for City Street and the other things.We can bring in money from allsorts of places.There is nothing to worry about.

Rag_hater wrote:There is a part of the rules which says we can have external income if it is linked to the club.Hence all the proposals for City Street and the other things.We can bring in money from allsorts of places.There is nothing to worry about.

Time for another go at building that super casino methinks

Lev Bronstein wrote:

Rag_hater wrote:There is a part of the rules which says we can have external income if it is linked to the club.Hence all the proposals for City Street and the other things.We can bring in money from allsorts of places.There is nothing to worry about.

Time for another go at building that super casino methinks

All that stuff will help in the long term but it needs building & meanwhile we'd have to sell a fair few 'locally produced' sausage rolls to fund Balotelli's wages. We need a huge rise in income within just a few years & imo we haven't got the slightest chance of doing it to the required level, even with chump's league qualification, unless we get in big money from another source. I think we have that in hand but exactly how, I don't know. I trust our owner to have sorted it though.

There are a lot of grey area's within the new regs. For example, it isn't set in stone that a club will be banned from European competition for failing to meet the guidelines. Banning a club is the ultimate sanction but there is a provision for warnings and fines set within the rules.

Murph wrote:There are a lot of grey area's within the new regs. For example, it isn't set in stone that a club will be banned from European competition for failing to meet the guidelines. Banning a club is the ultimate sanction but there is a provision for warnings and fines set within the rules.

Perhaps they've worked out an agreement to fine us £20mill every season & give it to Platini & Blatter.

I think the Sheikh should register us as a charity for overpaid footballers and make a big donation.