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- May 14, 2007

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#1

In the plethora of threads on the stadium, a number of times people have stated "we have to do something because of the financial fair play rules".

So, I have done a little bit of work on this in my lunch hour, in order to start the process of taking this out of the debate on moving to Stratford once and for all.

Hence the new thread.

Here we go:

- Spending on stadium and depreciation of stadiums is NOT taken into account in the determination of whether we meet the fair play regulations. Therefore the cost of the NDP, including it's financing is irrelevant to the debate.

- If we stayed at the current site with our current capacity and made neither a profit not a loss on transfers, we would have to raise ticket prices by approximately £12 per ticket, per game in order to meet the acceptable deviation on break even.

- As long as ENIC were prepared to contribute between £10m and £15m per season in equity, we would not have to raise ticket prices at all.

I will readily admit that the above is based on a few minutes of reading the financial fair play rules (available here http://www.uefa.com/MultimediaFiles/Download/uefaorg/Clublicensing/01/50/09/12/1500912_DOWNLOAD.pdf )

and based on interpretting these based on the information available in the 2010 financial statements and assuming that all things remain equal going forward.

I have excluded transfer profits from the analysis to show what would happen if we did not sell any players at a profit.

I am a bit stretched time wise at work at the moment to do a full examination, but the above is based on a preliminary assesment.

At the very least, it does not exactly add much weight onto the argument that we absolutely MUST move in order to meet the new regulations coming into force.

Okay, I've put that out there, put the proviso's in place about the constraints on my time - I'll happily withdraw any of the above assetions if someone with more time on their hands can demonstrably prove that they are incorrect.

But don't just assume that's the reason we must move.

Edit: To clarify, the above excludes any money earnt from champions league and is based on a 19 game home season.

So, I have done a little bit of work on this in my lunch hour, in order to start the process of taking this out of the debate on moving to Stratford once and for all.

Hence the new thread.

Here we go:

- Spending on stadium and depreciation of stadiums is NOT taken into account in the determination of whether we meet the fair play regulations. Therefore the cost of the NDP, including it's financing is irrelevant to the debate.

- If we stayed at the current site with our current capacity and made neither a profit not a loss on transfers, we would have to raise ticket prices by approximately £12 per ticket, per game in order to meet the acceptable deviation on break even.

- As long as ENIC were prepared to contribute between £10m and £15m per season in equity, we would not have to raise ticket prices at all.

I will readily admit that the above is based on a few minutes of reading the financial fair play rules (available here http://www.uefa.com/MultimediaFiles/Download/uefaorg/Clublicensing/01/50/09/12/1500912_DOWNLOAD.pdf )

and based on interpretting these based on the information available in the 2010 financial statements and assuming that all things remain equal going forward.

I have excluded transfer profits from the analysis to show what would happen if we did not sell any players at a profit.

I am a bit stretched time wise at work at the moment to do a full examination, but the above is based on a preliminary assesment.

At the very least, it does not exactly add much weight onto the argument that we absolutely MUST move in order to meet the new regulations coming into force.

Okay, I've put that out there, put the proviso's in place about the constraints on my time - I'll happily withdraw any of the above assetions if someone with more time on their hands can demonstrably prove that they are incorrect.

But don't just assume that's the reason we must move.

Edit: To clarify, the above excludes any money earnt from champions league and is based on a 19 game home season.