Takeover

[Peachy]

No - I’ve already allowed for that in the “£39m over 3 years” permitted losses.  That sum is made up of £5m per annum of permitted losses, and owners are allowed to inject an additional £8m of equity (but not loans).  Only the losses of £5m a year can be funded by owners’ loans.

Agree, sort of.  I haven’t seen in the regs the owners aren’t allowed to inject an amount greater than that allowed in the losses calculation. I.e.  the amounts used in the calculations are as you state, but additional funds pumped into a club and not used in the FFP calculation.

I’m certain it’s limited to £39m over 3 years, with a cap of £24m being able to be injected via equity.  It’s all in transition, but those are the limits.   If those limits weren’t there then the likes of, Bristol City, Stoke and QPR could buy their way to promotion via huge equity injections. In

They can’t though,  as whilst there’d be large cash injection, that, as you know is irrelevant re the profit & loss account.  The clubs could buy expensive players, but those fees have to be amortised and hit the p&l and FFP calculation.  

I need to have another read of the regs to see if there is a restriction on the amount of a rights issue / loan in football clubs

Yes the owners can put in more equity provided that the 3-year accounting losses don’t exceed £39m.  As you rightly say, if the extra money is spent on wages and transfers fees then the P&L account will reflect that and count towards the FFP limit.

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Agree, sort of.  I haven’t seen in the regs the owners aren’t allowed to inject an amount greater than that allowed in the losses calculation. I.e.  the amounts used in the calculations are as you state, but additional funds pumped into a club and not used in the FFP calculation.

I’m certain it’s limited to £39m over 3 years, with a cap of £24m being able to be injected via equity.  It’s all in transition, but those are the limits.   If those limits weren’t there then the likes of, Bristol City, Stoke and QPR could buy their way to promotion via huge equity injections. In

They can’t though,  as whilst there’d be large cash injection, that, as you know is irrelevant re the profit & loss account.  The clubs could buy expensive players, but those fees have to be amortised and hit the p&l and FFP calculation.  

I need to have another read of the regs to see if there is a restriction on the amount of a rights issue / loan in football clubs

Wasn't the share / rights issue how the Seals got out of one of their recent would be holes in FFP?

Yes but the regulations have since changed

Well there's a surprise......

Spawny fuckers!