American operation and FFP

[blues2win]

Just let Platini go for us and he'll be hit so hard he won't know what's hit him. Our arm is long and our vengeance will be total. Basically as long as we make some efforts he won't touch us. If he did he'd find there would be nightmarish litigation about accounting practices etc not to mention the blatant illegality of unfair play as a restraint of trade. If he tries to go after the big clubs he could destroy UEFA's finances. It's bollocks.

[Mikhail Chigorin]

With all the interesting and knowledgeable posts in this thread being expressed, it just made me think of the comparison with the Glazers.

They got their snouts into the Scum's trough to bleed money out of that Club. Our owners look to be doing this to (hopefully) drip-feed additional revenue into our own Club.

If that is the case, it's an ironic parallel.

[Ted Hughes]

NYC's books can't be included in ffp because ffp is a UEFA thing, but if 'we' have spent £300 mil on it, then that also must be exempt from the accounting as far as ffp goes or we'd be fucked. All very intersting & no doubt close to impossible for Platini & Co to regulate (as will many of our sponsorship deals be imo). Interesting ideas from Herb as to how we may benefit with expenses.

The £300m is a capital investment, so the cash is simply converted into another type of asset, eg equity and this we still have £300m on the balance sheet after the transaction. As a result it is a totally neutral transaction for FFP purposes as it has no impact on operating profit, which is largely (though not entirely) the measure for FFP

I don't get that though, as surely we haven't got a spare £300 mil on the balance sheet to start with ?

Where is the £300 mil coming from ?

[Tesl]

Spot on and I agree with everything there. We are immensely lucky.

Do you think so?

Yeah!

[Socrates]

NYC's books can't be included in ffp because ffp is a UEFA thing, but if 'we' have spent £300 mil on it, then that also must be exempt from the accounting as far as ffp goes or we'd be fucked. All very intersting & no doubt close to impossible for Platini & Co to regulate (as will many of our sponsorship deals be imo). Interesting ideas from Herb as to how we may benefit with expenses.

The £300m is a capital investment, so the cash is simply converted into another type of asset, eg equity and this we still have £300m on the balance sheet after the transaction. As a result it is a totally neutral transaction for FFP purposes as it has no impact on operating profit, which is largely (though not entirely) the measure for FFP

I don't get that though, as surely we haven't got a spare £300 mil on the balance sheet to start with ?

Where is the £300 mil coming from ?

The club can issue another batch of shares to the owner in exchange for £300m cash which it then invests in NYC. The investment being equity it is not expenditure so does impact on the profit and loss account.

[Ted Hughes]

NYC's books can't be included in ffp because ffp is a UEFA thing, but if 'we' have spent £300 mil on it, then that also must be exempt from the accounting as far as ffp goes or we'd be fucked. All very intersting & no doubt close to impossible for Platini & Co to regulate (as will many of our sponsorship deals be imo). Interesting ideas from Herb as to how we may benefit with expenses.

The £300m is a capital investment, so the cash is simply converted into another type of asset, eg equity and this we still have £300m on the balance sheet after the transaction. As a result it is a totally neutral transaction for FFP purposes as it has no impact on operating profit, which is largely (though not entirely) the measure for FFP

I don't get that though, as surely we haven't got a spare £300 mil on the balance sheet to start with ?

Where is the £300 mil coming from ?

The club can issue another batch of shares to the owner in exchange for £300m cash which it then invests in NYC. The investment being equity it is not expenditure so does impact on the profit and loss account.

Could there be some trick in here, where they have just 'gained' £300m in a way Platini & Co hadn't created a rule for ?

[zuricity]

The club can issue another batch of shares to the owner in exchange for £300m cash which it then invests in NYC. The investment being equity it is not expenditure so does impact on the profit and loss account.

You should be more clear. A capital injection is what you mean. Normal trading involves sales and expenditures. Both of the latter are subject to vat and eventually tax on profits.

Capital flows are not subject to any such taxation. However, as the Glazers know all too well, Capital flows can incur ( to the Glazers benefit, very high loan) fees.

So any 300 mill the owner injects on behalf of City in the NYC venture, is capital not, monies taken from sales revenues from the Etihad stadium, but money from his own pocket.

If he's borrowed the money he might pay some interest but i doubt that. Unless it's from his own Bank.

[Socrates]

NYC's books can't be included in ffp because ffp is a UEFA thing, but if 'we' have spent £300 mil on it, then that also must be exempt from the accounting as far as ffp goes or we'd be fucked. All very intersting & no doubt close to impossible for Platini & Co to regulate (as will many of our sponsorship deals be imo). Interesting ideas from Herb as to how we may benefit with expenses.

The £300m is a capital investment, so the cash is simply converted into another type of asset, eg equity and this we still have £300m on the balance sheet after the transaction. As a result it is a totally neutral transaction for FFP purposes as it has no impact on operating profit, which is largely (though not entirely) the measure for FFP

I don't get that though, as surely we haven't got a spare £300 mil on the balance sheet to start with ?

Where is the £300 mil coming from ?

The club can issue another batch of shares to the owner in exchange for £300m cash which it then invests in NYC. The investment being equity it is not expenditure so does impact on the profit and loss account.

Could there be some trick in here, where they have just 'gained' £300m in a way Platini & Co hadn't created a rule for ?

It's a way of him putting money in the club that doesn't impact directly on FFP through general expenditure. If NYC pay some expenses - as indicated by Herb above - then it improves the annual profit and loss potentially by tens of millions...

[Ted Hughes]

Ok cheers.

I was just wondering if there was another angle in adittion to the stuff Herb mentioned, where the actual value of the NYC club itself could be used in some sly way.

I'm convinced they will pull some big rabbits out of the hat & wondered if this could somehow be the first one.

[Socrates]

Ok cheers.

I was just wondering if there was another angle in adittion to the stuff Herb mentioned, where the actual value of the NYC club itself could be used in some sly way.

I'm convinced they will pull some big rabbits out of the hat & wondered if this could somehow be the first one.

Possibly they may actually make a profit and pay dividends too or we may lend them money and receive interest. Is a block of money that will be working to enrich MCFC and improve our position for sure.

[Mikhail Chigorin]

This thread is fantastic and makes terrific reading throughout.

If everything comes to pass, as is being currently surmised on here, in years to come FFP may well become nothing more than a mildly interesting historical irrelevance.

The Fat Frenchman will have been shown to be completely outflanked, when compared to the financial acumen and guile of our owners.

What a nice thought to begin 2014.

[zuricity]

This thread is fantastic and makes terrific reading throughout.

If everything comes to pass, as is being currently surmised on here, in years to come FFP may well become nothing more than a mildly interesting historical irrelevance.

The Fat Frenchman will have been shown to be completely outflanked, when compared to the financial acumen and guile of our owners.

What a nice thought to begin 2014.

He has already been outflanked by his son working as a legal rep for the company that now owns PSG.

Given his ballooned size these days, i'm pretty sure he can be easily outflanked.

[Patrick]

In summary,

1. bunch of overpaid corrupt fuckwits try and stop anyone coming in and changing the accepted order

2. City get some clever people in and they dance rings round said fuckwits

I don't think I can imagine just what lengths our owners are prepared to gogo to, but I am totally convinced that when they say our ambition is large and unlimited, they mean global football domination and it starts in a few years time..... Sigh

[nottsblue]

Lets remember Platini is an ex pro who has somehow made it to top echelons at UEFA. Judging by his waistline and jollies to awards events etc he is not in it for the good of the game. He is not an accomplished administrator either.

Compare this to the Sheik and his entourage. Very driven, very succesfull businessmen who have known nothing but success in their dealings. Can anyone honestly see them getting outflanked by the fat frenchie.