Burnley hit with transfer embargo

[dsr-burnley]

But it sounds like the previous auditors wouldn't. So it's like asking for a retrial. It's a terrible look as all most clubs need is a statement from the owner saying they will cover losses. The fact that wasn't enough is quite telling. The ownership structure will probs be part of the issue due to lack of clarity. Happy to see how it pans out but I'm not sure 'nothing to see here', which is what Derby and others have tried in the past will wash for very long.

There's a lot of truth in that. However, unless there have been some strange doings that we can't know about, the accounts will certainly be satisfactory for FFP purposes with or without the owner's debtor included - and remember the owner's debtor issue is only my guesswork, there's no hard information behind it. It may be no more than an administrative issue.

 

[RenzoRosso]

The rules are a joke, Villa proved you can do what you want if you have the cash and Burnley are just following that example. Didn't work for Derby but most clubs are looking at it and thinking it's worth the risk. The fact that we all know it won't be dealt with in the season it happens says it all, bro and everyone else following the rules this season are the one that should be compensated not premier league clubs next season or champ clubs the one after next. It's as if it's designed to be abused by those that can afford it.

 

[dsr-burnley]

The rules are a joke, Villa proved you can do what you want if you have the cash and Burnley are just following that example. Didn't work for Derby but most clubs are looking at it and thinking it's worth the risk. The fact that we all know it won't be dealt with in the season it happens says it all, bro and everyone else following the rules this season are the one that should be compensated not premier league clubs next season or champ clubs the one after next. It's as if it's designed to be abused by those that can afford it.

Burnley used to have cash, the owners took it all. FFP rules are designed to stop teams using money they haven't earned to buy players and pay their wages. That certainly isn't the case with Burnley.

 

[Andy_W]

Obviously not a lot of details on this yet, but if an embargo hit in the next window, rather than a points deduction this year, they would go up and not be able to sign players wouldn't they?

Would this not then activate promotion clauses and bonuses hitting them with financial pain, and then they would almost certainly come back down (through not being able to strengthen)?

Obviously, players are now more reluctant to sign for clubs under investigation now also, which wasn't really the case years ago.

We need to get away from the model of clubs being able to buy success. The laws trying to prevent it don't really seem to help, as all that seems to happen is clubs come up with dodgy accounting practices, which are more and more complicated, to try and circumvent any laws. Then, by the time it's realised, these laws may have been broken, the birds nest takes too long to unravel, and so the club doesn't get stopped at the time when they were doing the dodgy dealings, but only after they've had some of the rewards for it.

They need much more open books, visible on a monthly basis, and much harsher punishments which actually act as a deterrent. Bounce the clubs down three leagues, and remove them from sponsorship revenue for three years. See how many attempt it then.

I would like the system to work like the draft in NFL, where the lesser teams had first pick of the upcoming talent, but we couldn't do it here as we don't have the College Football style system in place, and our system just isn't geared up that way.

They could redistribute more money to the lower teams, but if you only do that in the Prem, then the Prem would be impenetrable by any club outside the top 20. They could redistribute money through all leagues, but then where do you stop?

The reward for the prem, and CL is far too high though, it convinces far too many to buy lottery tickets which they can't afford, it's like the ultimate gambling for the extremely wealthy. We were not better mind, we just did it earlier, when SG had more money than most, but I suppose things were more open back then.

 

[Jonny Ingbar]

Burnley used to have cash, the owners took it all. FFP rules are designed to stop teams using money they haven't earned to buy players and pay their wages. That certainly isn't the case with Burnley.

I can understand your defence of your club, but there's only one reason why clubs file accounts late and that's because there's a problem.

I hope for you and all the Burnley supporters that it proves to be a minor issue and not one that's borne out of significance FFP breeches, ones that have secured a spring advantage. Burnley have been the standout team this season and deserve to go up as champions, I just hope it's not tainted by any FFP breaches.

 

[northriding]

Burnley used to have cash, the owners took it all. FFP rules are designed to stop teams using money they haven't earned to buy players and pay their wages. That certainly isn't the case with Burnley.

It's criminal that a decade of prudence and solvency was undone overnight because someone wanted to buy your Club with the money you banked from sensible housekeeping.

I still can't get my head 'round how that was ever allowed to happen.

 

[indeedido]

Thanks dsr for your input, really interesting.
Penalties come from (in theory at least) non compliance to FFP.
Burnley are not remotely in FFP difficulty, nor will they be this season given their activity.
They will go up and any administrative issues will disappear into the ether of the PL parallel universe.
What has happened at Bournemouth, Villa, Wolves re FFP on losses prior to promotion to the PL is staggering.
What Stoke got away with re amortisation and impairment actions recently beggars belief.
Burnley is a very different situation.

I hate any form of leveraged buyouts in football.
Chancers attempting to get rich by exposing the club, its employees and supporters to huge additional financial pressure and risk should be outlawed.
I'm no lover of Man U supporters, but the Glazers have been parasites as an example.
You have to be pretty remarkable operators to financially win in football - a notoriously difficult market - whilst burdening your company with either massive external debt (Man U) that has to be funded, or worse like Burnley where the shareholder value has been compromised in order to fund the purchase of the club by people who haven't a pot to **** in, or any exposure if they get things wrong.
So Burnley get promoted turn the gravy back on, make profit that the owners withdraw. Maybe they use that to pay back the club some of what they owe to rebuild the balance sheet, maybe not. Maybe they just keep milking the club like the Glazers do at Utd.

 

[MVBoro]

I think they are looking for investors (some NFL celebrity?) was at their game on Saturday. Obviously marketing it as a good investment as the riches of the prem await. I think there is some misdemeanor.but difficult to know exactly what it is atm. However unlikely to get punished by the EFL as they will be in a different league next season.