Daniel Levy sends 'wage control' warning about new FFP limits

[mawspurs]

During a question and answer session with the Cambridge Union, Levy was asked about the 'super wealth' coming into the game at Newcastle and what 'implications' it would have for Spurs in the future.

"Well, firstly, there are new UEFA rules coming into effect this season where sustainability is going to become much more paramount in people's minds," the Spurs chairman said. "You will be limited to the amount you can spend on wages and transfer fees to a percentage of your total turnover.

"It's starting off at 90% and, over three years, it's going down to 70%. The impact of that is effectively some form of wage control. Even though clubs have been spending very heavily - if you talk about someone like Chelsea - now the new rules come into effect this summer, you will find, regardless of who is the owner, it's going to have quite an impact on the financing of football."

Source: Chronicle

 

[Real_madyidd]

The question will be "what are the sanctions for breaching the rules?". If that answer is that you will be fined, as it has been for all previous attempts to control finances then we may as well fuck it all off right now.

 

[14/04/91]

The question will be "what are the sanctions for breaching the rules?". If that answer is that you will be fined, as it has been for all previous attempts to control finances then we may as well fuck it all off right now.

And can they sponsor themselves at above average market rate?
I think I read they are tightening up on this but it’s hard to take seriously until they clamp down.

 

[Japhet]

He's used FFP 'concerns' to avoid proper investment for years to a point where we could have spent 400m without any problems. Meanwhile, many others have completely ignored the 'rules' without sanction.

 

[Misfit]

Whatever else he is, he's not stupid. He knows that no sports league will kill off its own major cash cows. Sure, maybe a few fines are handed here and there but nobody will really care and it'll all carry on as normal.

And if the hopes are that UEFA will be the guiding moral force of anything then, well, you're only kidding yourself Daniel.

Still, very handy and morally satisfying excuse for not busting every gut within our means in trying to compete.

 

[Real_madyidd]

And can they sponsor themselves at above average market rate?
I think I read they are tightening up on this but it’s hard to take seriously until they clamp down.

Will be very interesting to see if teh previously so low valued Newcastle sponsorship (so low in fact that they just used Sports Direct) suddenly becomes really valuable to SaudiAramco, who have no products that condumers can actually buy.

 

[Neon_Knight_]

UEFA FFP restrictions were in place as Man City bought their titles and as Barcelona racked up their £1.5billion debt.

Updating the rules isn't going to change anything, unless they've also updated the enforcement processes.

How severely would Man City need to be punished, for their decade of breaches and cooking their books, to make other clubs think twice? Fines won't do it (particularly as the fines can be paid by the owners, without being included in their accounts for FFP purposes), as even a record fine would be loose change to their owners. A points deduction big enough to ensure their relegation to the Championship would really just be a one-season inconvenience that doesn't come close to outweighing the titles and revenue boosts they've gained through their overspending. Perhaps having to start right at the bottom of the football pyramid is the minimum needed and that's simply not going to happen.