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No FFP Transfer Embargo for Blues
The Football League have confirmed today that following an initial analysis three clubs have failed to meet the Financial Fair Play requirements and face a transfer embargo in the next window. The three clubs – Leeds United, Nottingham Forest and Blackburn Rovers – face severe restrictions on bringing in new players until their accounts are in line.
The announcement made by the FL confirms that the League are in discussions with other clubs with a chance of others falling foul of the regulations. A Blues source I spoke to in October confirmed to me that they are happy that they have met the rules and indeed had received commendation for supplying the required documentation ahead of time.
The key thing to remember with respect to these FFP rules is that they don’t apply to accounts as we see them, but what is called the “FFP result” of the accounts. This is because various things such as investment in academies, training facilities and the like can be written off, so clubs aren’t penalised for heavily investing in their infrastructure. I think the newspaper reports which included Blues were going on the basis of the BIH accounts – which aren’t the same as BCFC accounts anyway (as they include HK costs whereas BCFC accounts do not) and thus were not an accurate representation of Blues’ FFP result.
A embargoes go, the restrictions to be placed upon Leeds, Forest and Blackburn don’t seem too harsh – clubs with fewer than 24 first team professionals over 21 who have made five first team appearances will be able to sign players for a total employee cost (wages, bonuses, signing on fees and agent fees) of less than £600,000 per annum – around £11,500 per week, well above the 5k cap that Blues have as an example.
If a club has more than 24 established first team pros then the FL will allow one in, one out – with certain wage restrictions (the £600,000 cost mentioned above or 75% of what the outgoing player was on, whichever is the lower); no transfer fee or loan fee will be allowed so it will be free agents only.
As of yet, there is no word on clubs who were promoted to the Premier League last season; QPR are expected to be heavily sanctioned and I think if they are the first real test of the FFP rules will come about as I believe that QPR will almost certainly challenge any sanctions in the courts.
As it stands, I think there could be some activity for Blues within the transfer window with the possibility of a couple of players coming in – a permanent deal for Michael Morrison is certainly a possibility with the defender out of favour at his parent club Charlton having fallen foul of new boss Bob Peeters. There is also rumour Blues are going for the younger brother of Andy Shinnie, Graeme, who is a left back for Inverness Caledonian Thistle where he has been receiving some rave reviews of late.
The big question is Dimmi Gray. The 18-year-old’s hat-trick at the weekend will have raised his stock further and I have no doubt that there are Premier League clubs watching. My hope is that rather than issuing a statement about only accepting “eye-popping” offers (which inevitably bite you on the bum), the club moves to tie down Gray longer than his current contract (which expires in the summer of 2016) as a statement of intent. Insiders say that the club have no need to sell Gray but actions (or in this case a lack of them) would speak louder than words.
Tags: Demarai Gray, FFP, Graeme Shinnie, Michael Morrison
26 Responses to “No FFP Transfer Embargo for Blues”
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Interesting really lets see what hapens
“..various things such as investment in academies, training facilities and the like can be written off, so clubs aren’t penalised for heavily investing in their infrastructure.”
I didn’t know that. It’s a good thing in a way, because it should encourage clubs to produce their own players, instead of paying inflated prices for the ‘finished’ article. But, on the down side, it means that Premier clubs can still hoover up the best young talent around for a mere pittance.
As for Graeme Shinnie, he was easily Cally’s stand out performer on the night in the pre-season friendly. Gerrimin!
If there’s one phrase Pannu will be remembered for, it’s “eye-popping”.
Dan, sorry to message you on here- forgot my freeforums login!
I desperately need a book for Christmas- if I purchase now, will I receive it in time?
Yup, I’ll make sure it’s dispatched promptly. Speak to EPJ and he’ll fix your login – they are concerned about you not being around
Ahhh bless their little cotton socks- I’ll email him later.
Thanks for that Dan, you’re a diamond x
Let’s hope the rumours that Redmond may be on the move for big bucks are true and we actually did have a substantial sell on clause in place, I seem to remember 25% being mentioned at the time.
Any news on Carsons bail application?
My younger brother is a rangers season ticket holder and I remember him saying to me that we’d signed the wrong brother. By the way – has anyone noticed that Kenny Jackett is looking more and more like Bagpuss?
Peter pannu gone from bihl kro
That’s official from hkse
Good news about pannu and good news about us being fine with the transfer window… A couple of recruits to go with what we’ve got and keeping gray will be great news come end of January when we could have about 12/14 points added to our 25 to make 37/39 poitnts from 27 games or so. Kro.
Well this looks like another proven case of “wait & see” rather than flapping over speculation.
It’s good to see that the unseen & unsung hero’s at BCFC are just getting on with keeping our house in order. Well done to all concerned
That’s what annoys me about fans boycotting games because of the owners and not thinking about the hard passionate work the staff do at the club to keep us going… Think of them and not the pricks who run the club and get your backside down st andrews and support the rowett revolution. Kro.
Not sure if pp can be re elected at agm but lets hope he’s gone for good
I think we have to be realistic about Demarai Gray. If the rumours are true then I imagine he has already had his head turned especially with the wage cap at Blues. Id say best we could do is get best price with a loan back for remainder of season and use the transfer money for a couple of more experienced players in key positions
Beware the Bobbing Turd that is Pannu….he is hard to flush……Lets hope he has gone round the U Bend this time !!
My understanding is that Pannu is still a director at BIHL, but can be voted out at the meeting today. I suspect his erratic behaviour has made him such a liability to the company that it’s a finality that he’s voted out. How he must rue the folly of his unsolicited abusive, ranting and incoherent posts to Al on this site, which have compromised his position at BIHL. He intimated that Carson was still pilling strings as a shadow director. How ironic it would be if Carson continued as a shadow director to influence th demise of PP.
Brek Shea has returned to Stoke. That leaves us with only 2 loan players now.. Hall and Morrison.
Hopefully Morrison won’t be just a loan signing soon.
Fingers crossed. If he does become permanent, that should leave us a lot more scope in the loan market hopefully.
Can’t say that bothers me. Actually I couldn’t fathom out why Clark brought him in on a short term loan after the experience of other short term loanees during the 2nd half of last season. Lee said after that he wouldn’t go down that route because he felt that such signings were not motivated, and that is why he git Hall on season long loan.
Hopefully Morrison will sign permanently, and then we’ll just have Hall.
I think Moussa is on a short term contract, but at least he’ll be motivated to perform as a means to being offered a permanent deal. I also believe that Ziggy’s deal is only to the end of the season.
This is also great news, and a credit to the accounts staff at BCFC. I also believe it is a credit to the person who established high-integrity accounting at the club…Karen Brady and the sound business sense legacy of her and the Golds. I was never to keen on Sullivan but I suppose he must have had a hand in it too.
good news, must admit my fear even allowing for allowed debt for infrastructure and academy i thought we’d be over the £3 million limit.
Though i understand the limit changes next season to a far higher figure, which means some clubs will be getting even further into debt, not that the Football League will sort them out just like bad owners.
Blues have agreed a 3 year deal for Michael Morrison. Another Xmas prezzie. :)
I know for a fact that a scout from Liverpool was at Blues today, no prizes for guessing why he was there???