It does seem insignificant which prompted me ask the FFP questions originally.
How come mid table championship teams can spend serious money while we continually worry about a £1M transfer fee.
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It is suggested that clubs cover FFP by spreading the transfer fee over the length of the contract of the player, and cover this balance by selling players at a higher fee. Which is now a serious possibility with the premier league full of extra cash, player values have jumped.
At Cardiff we are still carrying an over large wage bill, which we are seeing by the fact we simply cannot get rid of players because other clubs do not want to take on these wages (even Ipswich balked at the wages Huws were on, and i'm sure Pilks, Noone, and lambert were available for next to nothing in the transfer window). On top of this we are carrying the pay-offs made to other players and other wage demands.
Our situation may improve over time when our liabilities expire with contracts, however at the moment money is tight without having someone bankroll us over the amount we need at the moment.
Transfer fees are spread over the length of the contract, hence clubs like Wolves can buy a player on a long term deal over 4/5 years and then the cost is spread evenly over that. However, the downside is, if he's shit, you've got a dud for 4/5 years on big wages that you can't shift. See, ALF, Adeyemi, Cornelius etc.
I think due to dropping crowds and a crippling wage bill, we're flying very close to the Sun re FFP and I think Tan and Choo etc want to make sure we're not in an embargo in future years after the PP end next summer.
You can lose £39m over 3 years but this is different for each club as FFP rules vary on investment from owners etc. For example, Wednesday lost £5m and £6m in consectutive seasons but without a proper look at the accounts (and I can't be bothered to look at another club's), you don't know how they've classed depreciation, owner's investment, amortisation etc. Anyway, we've lost loads of money recently, so that's why we can't spend.
We made in 2014/15, £5.671m from match receipts. The season before, we made £8.276m. Comparatively, from TV payments etc we made 28m and 63m in those seasons. Ticket sales make **** all impact any more, and God knows how we're going to cope when the parachute payments end. It's a seriously scary thought.
Either way, we averaged 20,945 in 2014/15, so we need to get double that and more to get the £6m Warnock wants. Given our stadium holds 33k I'd say that may be a challenge. :hehe:
maybe we will sell Morrison in the summer as he must be on a large wage as signed for a few million?
We have done this in the past but I am certain cancelling contracts results in City paying an agreed settlement fee, which still impacts our accounts.
We have certainly learned a harsh lesson over the last couple of years and I trust NW not to take us down that road again.....
I understand what you are saying but I wonder what those clubs have spent on transfers over the last 18 months. I cannot be bothered to check, but I suspect (certainly in the case of Derby) it runs into many millions so astute commercial management and crowds of 30K still don't absolve them from FFP problems.?
agreed. "Cancelling contracts" is not the answer, platers are entitled to their wages one the period of the agreed contract with the club. To cancel a contract, the player would have to be paid the contract in full or accept a lesser offer with the hope of getting a new deal with a new club quickly. Also if we were to do this then we would have to sign new players presumably , so effectively paying twice for the use of 1 player.
We have been down this route so many times over the last few years and it beggars belief the amount go money we have wasted on wages for players we haven't utilised. The answer is we have to squeeze as much out of the players we got in terms of performance, and hope they are either wanted by others clubs, thus giving us a transfer fee. Or we run down their contracts and release on a free at the end. I believe this is what we will do with Manga, Whits, Noone, Lambert .
Id be amazed if we keep decide to keep Whittingham for next season. He is clearly not a Warnock type player, not a grafter, but a luxury. Throw in the fact that he must be on a very good wage here. He has been fantastic for us over the years and is right up there with our top players ever, but times change and we have options like Huws, for next season who we already have at the club.