Takeover

[Fulham Fallout]

So if you're a financially stable club in this division is there any advantage in having a mega rich owner?  I guess they can spend in other areas like training facilities,  the ground etc

You can buy promotion at the risk of huge FFP sanctions (see FOSUN/Mendes/Wo1ve5 in 2017/18). Do often find it surprising Coates family at Sjoke haven't gone down this route last couple of years.

How did the dings get away with it? Was it investigated at all?

They won the league so they were no longer under the jurisdiction of the EFL.

The PL and EFL have agreed to honour the other side’s punishments so that’s not true.

Wolves didn’t breach FFP, they’d been a relatively solvent club under Morgan and Fosun were able to structure payments so that they didn’t lose the required amounts. There was also a loophole with FFP where owners could turn loans into equity that helped a lot of clubs avoid sanctions. 

The easiest way to spunk your way out of the division is through transfer fees. Paying big wages like we do os what cripples you on FFP, as well as cash flow!

That’s not correct.

Transfer fees also affect FFP, as the fee is charged to the profit and loss account (on a straight line basis) over the length of the contract.  So, if we buy a player for £15m on a 3 year contract, £5m (£15m/3) would be charged to the profit & loss account every year and impact FFP.

Transfer fees obviously impact cash flow too and more often than not are front end loaded.  e.g, £10m on signing the player and £5m one year later.  Grant was the exception, with his fee payable over the length of his contract.