In what world would selling to yourself qualify as revenue for PSR purposes? If that type of shit goes through I hope the PL just folds. Bin the whole thing.
2023-2024 EPL Season
- Thread starter spintheblackcircle
- Start date
Spring in Fialta
A malign star kept him
- Oct 3, 2013
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I’m done with the PL if this goes through. The Serie A and BuLi fans on here can fight for my allegiance
And here is the kicker. Apparently Man City was blocked from doing similar to this a few years ago. That’s right - this shit was too crooked for Man City to get away with
Chimaera
same ol' Caps
The same world where City can just add some zeroes on sponsorship deals from their own entities or pay players off the books.
Allegedly. But not allegedly.
It's just a matter of how much clubs want to cheat.
bluesfan94
Registered User
Because they're separate entities within the same umbrella. Which can make sense. Say a PL team is building a development around its stadium/training ground/whatever. The revenue and losses from that shouldn't affect the revenue and losses for the actual team. This is just a way of gaming the system.
The embarrassing part is that they need to do this despite some of the guaranteed sale options that they have this summer.
Why? Why would that be the case? If it’s under “one umbrella”, it’s one entity. It should exactly count toward the revenue and losses for the parent club.
Applying that logic, every time a club gets in trouble they can continually create new shell companies and sell off parts of the club in an endless loop and it would never trace to the main club.
hatterson
Registered User
I think the key for the PSR stuff is that the sales have to be at market value. So they could get credit for selling it to themselves for roughly the same price as they could sell it to a random third party for. They can't sell a hotel for 500m or their training ground for 250m or whatever, but they can sell them for normal market rate prices.
Also worth noting that just like the Barca levers, they can't keep pulling the same one. It's not like they can sell the training ground this year and then sell it again next year.
Also worth noting that just like the Barca levers, they can't keep pulling the same one. It's not like they can sell the training ground this year and then sell it again next year.
bluesfan94
Registered User
Except that the main club can only do it once. There are only so many parts that can be sold off.
How far does this go though? Should David Sullivan's other businesses be factored in?
What if they situated the main club underneath a controlling entity? Then they could sell the club’s own assets to itself and count it as new revenue?
The whole thing is a joke.
If there’s one umbrella, it’s one entity. So I still don’t understand how self-dealing even in the accounting sense possibly makes sense as it relates to PSR.
bluesfan94
Registered User
What do you mean? Let's use Arsenal's ownership structure. It is currently owned by KSE. If Arsenal sold Hale End to KSE and KSE put it into its own entity, that move would only work once. Arsenal cannot then sell Hale End again because it does not hold it.
- Oct 3, 2013
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In this scenario, what is to stop KSE from selling it back to Arsenal? And just to keep yo-yo’ing ?
Only allowing something like this to be sold externally would disincentive something like that
hatterson
Registered User
- Oct 3, 2013
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Separate businesses are separate businesses. If they’re consolidated under one “umbrella”, then they aren’t.
bluesfan94
Registered User
JeffreyLFC
Registered User
- Sep 29, 2017
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Yes, that is pure cheating in term of rules established by the EPL and possibly easier to prove than Man City allegation. The only difference is are the FA going to fight them about it...
- Oct 3, 2013
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hatterson
Registered User
So your claim is that they'll sell it to themselves this year for 50M and then buy it back next year for significantly less than 50M?
bluesfan94
Registered User
If the rules require market value, then yeah we do. Unless your contention is that market value fluctuates wildly year from year.
- Oct 3, 2013
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I am accounting for fluctuation(s) and/or no incentive to sell for best possible price.
i am claiming we don’t know what the bill would be next year, but there wouldn’t exactly be a shakedown either way.
And why should we expect there will be no other shenanigans
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Chimaera
same ol' Caps
hatterson
Registered User
Should be worth a lot as a training area for a repair company.
