17 Apr 2024 12:43:32
Hi Ed002, you have said FFP is a good system for teams to follow so clubs don't end up like everton and outspend there means and end up in disaster land.

I just wanted to get your opinion on chelsea and clubs doing similar things. Yesterday chelsea sold a hotel to another Boehly owned company and are able to count that in as income under FFP.

Is that not completely ridiculous? Or am I completely misinformed? (I'm happu to be told that if I am)

{Ed002's Note - The hotels were not sold yesterday but the income can be claimed in the accounts as they are assets of the business - as long as they are not over or under valuing those assets.}

1.) 17 Apr 2024
17 Apr 2024 13:30:23
Standard, I'm no forensic accountant but there is nothing to prevent Chelsea from selling assets within the larger sporting structure. I believe that clubs in the football pyramid beneath the Premier League cannot include these transactions on their accounts, and this is also the case in Europe, but I could well be wrong on that.

It's also important to remember that even though they appear to have used this sale to their benefit in this year's accounts, it will now presumably mean that the club can no longer include revenue from the hotels in future accounts. So there is a give and take to this manoeuvre, and there are implications for the future.

While some will look at this and think 'another loophole', the club will probably argue that there is no sense in it owning hotels as a football club when they have set up a company to manage property.

{Ed002's Note - You have misunderstood the matter.}

2.) 17 Apr 2024
17 Apr 2024 23:31:56
Thanks Ed. Interesting.