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New PL Rules To Put United In The Driving Seat?

Earlier today that was a meeting of Premier League chairman in London who voted to adopt spending controls and a form of restraint on salary increases.

The new rules state that clubs can only lose £105m between 2013-2016 and that wages bills over £52m can only rise £4m per season if funded through TV cash. Clubs that breach the Premier League’s new wage increase controls and loss limits will face point deductions. Whilst some clubs may complain, these rules are much more lenient than the €45m allowed by Uefa FFP.

The rules are designed to prevent a repeat of the financial meltdown at Portsmouth, which became the first Premier League club to enter bankruptcy protection in 2010. Portsmouth are currently set to be relegated from League One this season, 11 points away from safety as it stands, when three seasons ago they were playing in the Premier League, reaching the FA Cup final that season and winning it two seasons prior.

If these rules were brought in three years ago, City and Chelsea would be in breach and facing a point deduction. City made losses of £97.9m, £197m and £121m (£311m over according to the new rules). Chelsea made their first profit in the Roman Abramovich era last year, at £1.4m, but made losses of £67.7m and £70.9m the two years before (£32m over according to the new rules).

In contrast, United’s net profit was £23.3m last year, £29.7m the year before, but recording losses of £83.6m the season before (despite making a record turnover of £286.4m) thanks to the Glazers’ interest repayments and one-off financial charges relating to the bond issue.

“The majority of the clubs supported change and now it will be up to the board to put into play. It was overwhelming the support,” said David Gold, co-chairman of West Ham. “Not all 20 clubs (voted in favor), some are a little concerned, but broadly, the vast majority of the clubs voted in favour.”




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73 Comments

  1. nirvanutdketki says:

    @kanchelskis Thanks a ton mate.. really valuable information. I will certainly take ur advice and hope for the best. Cheers!

  2. FletchTHEMAN says:

    Brett, I guess we will just disagree. You should read the link to the post by Andy Green.

    Unless you completely daft, you would have to say their management has been nothing short of lunacy and luck, more than skill, have started us on a road to recovery. They are hard workers. But if your banker had treated you thus, you would have sued him years ago for negligence.

    Here it is again,
    http://andersred.blogspot.ch/2013/02/500m-of-costs-later-could-we-see-debt.html

    While Andy seems to cut the Glazers much slack, there is at least 4-5 years to go, and then only IF they actually choose to pay down the debt.

  3. kanchelskis says:

    @Fletch

    You make a very good point about luck. There is a strong possibility that history will treat the Glazers very kindly, if they sell up with enhanced revenue streams and no debt. But the truth is they’ve played fast and loose with the club, with no regard for stability or security, and not a shit given about the fans.

    Truth is, without some things falling kindly for them, and without Fergie’s enduring brilliance, they could well have run this club into the ground.

  4. FletchTHEMAN says:

    If you want another conspiracy to warm your late nights,

    There is a very strange thing going on with regards our player contracts. There is only one contract that actually runs longer than June 30, 2016.

    A huge amount number of contracts run till exactly that date, while some Rio, Vidic, Scholes, Giggs, Carrick run out sooner.

    If you look at the list, it has all the appearances of the Mayan Calendar debate of last month.

    Probably with as much of an out come as well :lol:

    Contracts all end on June 30 2016
    Shinji Kagawa
    Nick Powell
    Robin van Persie
    Rafael
    Fábio
    Antonio Valencia
    Chris Smalling
    Javier Hernandez
    Danny Welbeck
    Phil Jones
    Ashley Young
    Jonny Evans

    Only one senior player has a contract that runs longer. Can you name him?
    Cleverley and Ando run out on June 30 2015, all others in the next year or 2. 8O

    I love a good conspiracy as much as the next guy, but given how well we did with Pogba and Rooney’s contracts. I not all that enamored with the club policy of not renegotiating until the final year of the contract.

  5. kanchelskis says:

    @Fletch

    Rooney?

  6. Sparkz says:

    @Fletch – I’m stumped mate, unless the one player is Wilfred Zaha?

  7. FletchTHEMAN says:

    Not Rooney, June 30 2014 (next summer actually) oooooo that will be fun won’t it
    Same day as Fletcher, Anderson, Valencia and Cleverley.

    Not Zaha (although the site I am looking didn’t include his), I also I didn’t include any players on loan, So not Machada, or Bebe.

    The fact that Shinji Kagawa, Nick Powell, and Robin van Persie all have less than 5 year contracts fits with the conspiracy.

  8. Sparkz says:

    Buttner?

  9. FletchTHEMAN says:

    Sparkz…. Good man. It will warm your heart I’m sure that our future is secure with Buttner

    Also Sir Alex Ferguson’s contract runs ’til June 30, 2013. Roughly 142 days. Also up are Giggs, Scholes and Rio up the same day

  10. Atdee says:

    “Preventing financial meltdown” sounds like honorable intention for sure, but seriously: They are only creating room for corruption here. More rules you have, more people will try to avoid it – and this is exactly what “sport mafia” needs.

  11. Goat Peticoat says:

    Why would any player want to play at OT past 2013-2016 anyways, they would make more money on the continent.

  12. JC says:

    Fletch I dont think Rooney expires in 2014, he signed a 5 year extension when he renegotiated in Oct of 2010 that would make it summer of 2015.

  13. JC says:

    Also the manager has already said Giggs will be back next season (though he of the hairy chest has yet to confirm he wants to keep playing) but I expect Scholes to hang up the boots. Rio is probably 50/50 to stay, I’d guess it’ll be his choice to take the year to year contract which will most likely be offered. He could decide to take a big payday from MLS or one of the big money continental/arab/asian teams though but I doubt he wants to leave United as long as he gets a respectful offer.

  14. King Eric says:

    Oh fuck off Mancini you greasy snide cunt with your pathetic mind games. They bought dogshit players last summer in Maicon, Rodwell, Sinclair and Garcia hence their struggles to keep up this season. Thought he could rest on his laurels. I can see Saints getting summat tomorrow I really can. I loved our Everton game 2 seasons back when Hernandez scored that late winner. We had banged at the door but it looked like we wouldn’t score. OT was electric that day. Always like the Everton games, a bloody good side.

    Great news on Jonesy. Some say he may be deployed against Madrid in midfield to stifle them. I think he should be with Carrick and Clevs. Anderson will probably start tomorrow. BIG week ahead lads.

    Starting with Palace game tonight. Zaha watch!

  15. King Eric says:

    A real positive vibe around the club again on and OFF the field which is great to see after the last few seasons and the green and gold campaign etc.

  16. FletchTHEMAN says:

    JC Correct, That was a typo on my part. Rooney’s contract does run til June 30, 2015 (sorry for that)

    Goat, Why you saying the continent is better? I would agree about things in the past, but my understanding is that Spain and France are instituting super taxes for the wealthy. They have been talking about this alot in Spain where Real and Barca are expected to have to cover the differnences.

    Think super contracts in Spain are going to be cut back considerably.

  17. King Eric says:

    In David We Trust – Spot on pal. City thought they could just rock up and turn teams over. As you say United have moved their hunger and desire and level up a notch or 3 this season.

  18. dannysoya LOVES USAIN BOLT says:

    Just thought you guys should know that Crystal Palace are on the prime time Championship game tonight. Chance to see Zaha in a full game if you haven’t.

  19. Brisbanefan says:

    Brisbanefan – they can’t ban English football clubs from being owned by foreigners. European Community won’t be at all enamoured.

    The FA can ban owners from countries that don’t have a ‘football culture’. ie non-EC countries.
    However owners from EC countries cannot be banned.

    Dela says:

    @Brisbanefan –> Some issues with your ideas…
    Even if it did happen, rest assured the premier league teams would be banned from European competitions.

    Nonsense. Foreigners cannot own Bundesliga teams.

    Wakey – Why should foreigners be prevented from owning clubs?

    Football is part of the ‘ English culture’ as is the Albert Hall and The Tate Gallery’. Selling either of them would be unthinkable.

    I won’t reply to the immature rantings of Theredderdevil. I’m talking about OWNERS, not players.

  20. feedemscraps says:

    Love the bitter comments on the Daily Mail article

  21. DreadedRed says:

    Brisbanefan

    Your “The FA can ban owners from countries that don’t have a ‘football culture’. ie non-EC countries.” – is confusing me. Are you saying that only EC countries have a ‘football culture’ ?

    There are a lot of South American, Asian and African countries that do have a ‘football culture’
    In fact, some even have a greater ‘football culture’ than England.

    Some might even argue that owners who are football fans are not ideal. Too interfering.

  22. alfREDo says:

    Great stat KE,
    Long may it continue!

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