The AVFC FFP / PSR / SCR thread

[TrentVilla]

12 minutes ago, Tayls said:

Howcome? 

It doesn't matter... what matters is his capability and that I've faith in.

[Tayls]

1 hour ago, TrentVilla said:

It doesn't matter... what matters is his capability and that I've faith in.

It suggests there’s a weakness somewhere. Something we need to be wary of further down the line perhaps. 

Unless you know him personally of course, and you’re jealous of his bonsai bush collection. 

Edited June 3, 2019 by Tayls

[TrentVilla]

41 minutes ago, Tayls said:

It suggests there’s a weakness somewhere. Something we need to be wary of further down the line perhaps. 

Unless you know him personally of course, and you’re jealous of his bonsai bush collection. 

Who doesn’t have a weakness? Even John McGinn has one although thankfully his is his addiction to Iron Bru.

And they are Bonsai tree’s...

[Tayls]

7 minutes ago, TrentVilla said:

Who doesn’t have a weakness? Even John McGinn has one although thankfully his is his addition to Iron Bru.

And they are Bonsai tree’s...

You’re a tree!! 

 

Welcome back Trent. 

 

I f**&*** hate gardening. 

Edited June 4, 2019 by Tayls

[terrytini]

Anyone concerned about FFP adversely affecting us ( and I don’t think it’s many ) simply hasn’t been listening.

The CEO, the Manager, and, most importantly of course the major Owners have made it crystal clear there will be significant funds for investment.

These guys haven’t bought us to make money, they are loaded. They haven’t bought us in ignorance of the costs, or of the rules.

Why anybody places any store at all in off season paper talk is beyond me. Especially when it’s the Daily Mail.

[GENTLEMAN]

I wonder if the financial hit of a lump sum pay off of RMC will go on this financial season with regards FFP? Hence the reasoning and timing behind it

Edited June 4, 2019 by GENTLEMAN

[MrBlack]

The detailed analysis linked by Wilko suggested we could spend up to 100m in transfer fees and 30m per year on salaries, before any further unusual activity that may or may not be planned by our owners to allow further spending. 

Presumably some variation of that which sees our net outgoings stay the same (taking into account amortisation - very basically spreading the purchase cost over the term of the players contact) would also be acceptable.

Whilst this would see us make nearly the maximum net loss allowable under Premier League FFP rules, I'd still expect a similar level of outgoings knowing they have the option to purchase Villa Park if needed as cover.

Given this,  and the impending transfer of Jota for ~4m (who I expect will be on £1m a year more than GG), that leaves us with ~£96M and £29m a year on salaries to spend.

For the minimum 6 players we still need to buy,  that averages out at 16m per player on 90k a week.  Make it 8 players and it's 12m per signing and 69k per week

All in all,  I think we're good from an FFP perspective, the real issue we face now is getting the right people in,  and hoping they settle in and don't upset the apparent happy atmosphere that Dean has fostered.  I'm confident he can do this.

[mikeyjavfc]

6 hours ago, terrytini said:

Anyone concerned about FFP adversely affecting us ( and I don’t think it’s many ) simply hasn’t been listening.

The CEO, the Manager, and, most importantly of course the major Owners have made it crystal clear there will be significant funds for investment.

These guys haven’t bought us to make money, they are loaded. They haven’t bought us in ignorance of the costs, or of the rules.

Why anybody places any store at all in off season paper talk is beyond me. Especially when it’s the Daily Mail.

I think it’s right to be wary and question/challenge our owners where we can. Bitter experience tells us than when our owners say all the right things and say they have plan, we have been utterly shafted. With hindsight it’s easy to say the new ownership are miles ahead of the old, but there was a time not long ago when questioning the intentions of Dr Toni Xia would have seen you hounded on here or on Twitter for being overly negative and ungrateful.

I think you are right...but we’ve been burned before 

[terrytini]

1 hour ago, mikeyjavfc said:

I think it’s right to be wary and question/challenge our owners where we can. Bitter experience tells us than when our owners say all the right things and say they have plan, we have been utterly shafted. With hindsight it’s easy to say the new ownership are miles ahead of the old, but there was a time not long ago when questioning the intentions of Dr Toni Xia would have seen you hounded on here or on Twitter for being overly negative and ungrateful.

I think you are right...but we’ve been burned before 

Don’t disagree with any of that.

But there is plenty of evidence to show these guys are nothing like we’ve had in the past.

I suppose ultimately all owners will disappoint. But there’s enough to be optimistic about with these guys.

[sidcow]

I think the fact that Wes Edens took over a major ailing sports club and turned it around completely distinguishes them from what we've had before.  They know what they are doing and have evidenced it.  None of this is just talk from them. 

[Mark Albrighton]

My concern now (and apologies if this has been covered) is what happens if we’re relegated next season, are we at the mercy of the football league as we’ve fallen back into their laws?

I vaguely remember when Leicester won the league there was some discussion about them breaking FFP a couple of years before in the championship and if they found themselves relegated they would potentially be in big trouble.

[villa89]

10 hours ago, Shropshire Lad said:

My concern now (and apologies if this has been covered) is what happens if we’re relegated next season, are we at the mercy of the football league as we’ve fallen back into their laws?

I vaguely remember when Leicester won the league there was some discussion about them breaking FFP a couple of years before in the championship and if they found themselves relegated they would potentially be in big trouble.

I'd say it will all blow over. We technically didn't break any rules and if we get relegated we will have more parachute payments to balance the books. 

[Demitri_C]

5 hours ago, villa89 said:

I'd say it will all blow over. We technically didn't break any rules and if we get relegated we will have more parachute payments to balance the books. 

That's what I think. I think we didn't go up we will would have had severe trouble. But no point worrying about that as we are now a Premier league club. 

[brummybloke]

Ironic, this time last year nearly went under as had no money to pay the Bill's. This time have more than enough money to pay off every debt and clear the books and lump money into the account but not allowed to which could have got us in more trouble.

[Jareth]

I wonder if we'll hear about new sponsors now that we've slammed the trapdoor on the poisonous tentacles of the championship. 

[Demitri_C]

15 minutes ago, Jareth said:

I wonder if we'll hear about new sponsors now that we've slammed the trapdoor on the poisonous tentacles of the championship. 

Probably be at kit launch I'd imagine

[Made In Aston]

Listening to the Howard Hodgson podcast, there are a few interesting possibilities regarding increasing FFP headroom.

If we were to get planning permission to turn villa Park into office or another commercial enterprise, the value would rise into 3 figure millions (obviously not going as far as actually doing it!) . Couple that with the land we own (some of which is next to the commonwealth games developments) and we could essentially add hundreds of million to our profit and loss account.

Transfer deals are spread over the lifetime of the contract, so that gives us a lot of financial muscle in the market. 

Edited June 8, 2019 by Made In Aston

[dont_do_it_doug.]

On 04/06/2019 at 08:20, MrBlack said:

The detailed analysis linked by Wilko suggested we could spend up to 100m in transfer fees and 30m per year on salaries, before any further unusual activity that may or may not be planned by our owners to allow further spending. 

 

This is quite important. This is also before any increases in commercial revenue are taken into account. 

This is why in the transfer thread I stated that I wouldn't be surprised to see us spend big. £150m+ big. 

Normally I'd be the one saying slow down hoss, let's head for stability first and make the push when we've built up a bit of a buffer. However our circumstances are quite unique. If we already owned Mings, El Ghazi, Hause, Tuanzebe and Tammy then £80m should be plenty for 4/5 key additions, however we will need to spend ~£80m just getting back to that jumping off point. 

The aim should be to be competitive from day one, with an attacking minded set up from top to bottom there is no other option. We're not going to be able to shithouse our way to survival.

So we're going to have to push the limits, in my opinion, and I think we're going to be talking about FFP in 12 months time again. 

[MrBlack]

I think that analysis was done before the McCormack offloading so not sure what impact that will have... presumably more room for wages, slightly less for transfer fees.  But I agree with DDID;  I have a feeling the owners will find a way to spend more whilst still keeping us in check with whatever FFP rules require (including those of the EFL in case of relegation).  Exciting times. 

[sne]

Bit funny that the Middlesbrough chairman is having a hissy fit about us and other clubs "cheating" when they themselves have a £101m debt.

we have £6m according to the 17/18 figures