excuse my ignorance, but it seems a bit unfair on the newly promoted clubs who will have to spend more on their squads to bring them up to scratch, also how does it square with parachute payments for relegated prem side (sorry cdnt find the thread for this)
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http://www.telegraph.co.uk/sport/football/competitions/championship/9226249/Championship-clubs-agree-to-introduce-financial-fair-play-model.html
FFP limits spending to how much profit you earn. You cannot lose money for multiple years continuously. This basically means that large clubs will stay big and small clubs will stay small.
Ipswich have money to spend but they are not allowed to spend it. Wolves, on the other hand, can spend theirs because it comes from TV money that Ipswich didn’t get. How is that fair play?
Imagine in a business environment if you set a rule where businesses could only invest proportionally based on revenues. You would basically just entrench the current hierarchy permanently.
I've heard the explicit reasoning given for financial fair play is to prevent clubs from going bankrupt and folding. If that's the case, then as long as the club can prove it has significant reserves of capital, shouldn't they be able to invest as much as they want?
To all the people that are saying ffp prevents State ownership: FFPis preventing small clubs far more from succeeding. Newcastle have since got state ownership; they’ve just dressed it up otherwise. Their owners have been prevented so far from ’doing a Man City.’ What concerns me more is that we will soon have the same six clubs just swapping places. It’s only January and the relegation battle is virtually finished.
Eventually the Premier League clubs will do as in Ligue 1 and reduce it to 2 up, 2 down. I also predict that they will take the opportunity to reduce it to 18 clubs and have one relegation place as it was until recently between the EFL and The National League.
A while bunch will go pop when the rich and famous of this world get bored with English football, assuming they ever do.
That will not bring in world wide tv or the sponsorship and advertising that goes with it.