NFFC Financial Talk

[optimistic_red]

To that end, on 1 March 2022, Forest made its filing with the EFL in fulfilment of the CPSR requirements; its last one before being promoted to the Premier League approximately three months later. In this filing, Forest claimed a Covid Add-Back allowance of £12,178,000. 

5.6 On 4 July 2022, some two months after achieving promotion to the Premier League, Forest sent the same information previously provided to the EFL on 1 March 2022, to the Premier League

On 2 June 2023, the Premier League informed Forest, in relation to its PSR Calculation for the 2022/23 season, inter alia that: it would only allow a Covid Add-Back of £2.5m for FY22, not the entire £12,178,000 claimed and it would not allow Forest to claim any allowances for costs linked to promotion from the EFL Championship.

4 July 2022 we submitted information to PL about Covid Allowances it took them 11 months to 2 June 2023 to say we were only allowed 2.5m. That from the PL is embarrasing
Shouldn't take 11 months to say something can't be included.

If we had been over buy this amount then I don't think we would have got any point deduction as the PL left us no time to resolve the issue. However even if these losses were accepted we'd still have been 20m+ over (roughly the same amount Everton got 6pts for)

[BomberBowyer]

To that end, on 1 March 2022, Forest made its filing with the EFL in fulfilment of the CPSR requirements; its last one before being promoted to the Premier League approximately three months later. In this filing, Forest claimed a Covid Add-Back allowance of £12,178,000. 

5.6 On 4 July 2022, some two months after achieving promotion to the Premier League, Forest sent the same information previously provided to the EFL on 1 March 2022, to the Premier League

On 2 June 2023, the Premier League informed Forest, in relation to its PSR Calculation for the 2022/23 season, inter alia that: it would only allow a Covid Add-Back of £2.5m for FY22, not the entire £12,178,000 claimed and it would not allow Forest to claim any allowances for costs linked to promotion from the EFL Championship.

4 July 2022 we submitted information to PL about Covid Allowances it took them 11 months to 2 June 2023 to say we were only allowed 2.5m. That from the PL is embarrasing
Shouldn't take 11 months to say something can't be included.

If we had been over buy this amount then I don't think we would have got any point deduction as the PL left us no time to resolve the issue. However even if these losses were accepted we'd still have been 20m+ over (roughly the same amount Everton got 6pts for)

But isn’t that where the promotion bonuses/costs come in? Those amounted to c£20m and sure I read that we had been advised/understood that these could be excluded however the PL have disallowed us excluding them. Given the change in allowable COVID losses and not being able to exclude the promotion bonuses/costs then you can probably see why the club initially thought it was within or sailing very close to the limits.

[Tricky]

Ok............. me having a Winnie the Pooh moment here.......little bear with a little brain!!

If the PL havent accepted the Brennan sale money as part of last years accounts, then surely they will be a part of this years? and providing we dont do anything really silly, would we have to sell Murillo or MGW to balance the books? Plus we are allowed a tad more wriggle room this year as we are in year two of the three, so our losses can be a bit higher. 

Can somebody please clarify this?

[The reds]

Ok............. me having a Winnie the Pooh moment here.......little bear with a little brain!!

If the PL havent accepted the Brennan sale money as part of last years accounts, then surely they will be a part of this years? and providing we dont do anything really silly, would we have to sell Murillo or MGW to balance the books? Plus we are allowed a tad more wriggle room this year as we are in year two of the three, so our losses can be a bit higher. 

Can somebody please clarify this?

So we would have to make a 9m profit to stay within the rules, currently forecasting a 12-17m loss a sale with 30 million profit would put is back in line with the rules so Murillo would probably be the player to make easy profit on. Lots of clubs already circling.

[Salvatore Matrecano]

Ok............. me having a Winnie the Pooh moment here.......little bear with a little brain!!

If the PL havent accepted the Brennan sale money as part of last years accounts, then surely they will be a part of this years? and providing we dont do anything really silly, would we have to sell Murillo or MGW to balance the books? Plus we are allowed a tad more wriggle room this year as we are in year two of the three, so our losses can be a bit higher. 

Can somebody please clarify this?

There are people on here that understand more than me but using my O level (grade B - very proud) maths:
Our allowable loss for rolling 3 years for the coming season is £83m
Our accounts show loss in the first 2 seasons of this period to be £40m & £52m total £92m
Therefore to comply with PSR this year we will need to show a £9m profit

We made a big profit on Brennan but a large chunk of this will have to pay off the purchase of Wood and Shelvey alone, no amortisation on them, thats before we get to the rest of the squad.

[Tricky]

Ok............. me having a Winnie the Pooh moment here.......little bear with a little brain!!

If the PL havent accepted the Brennan sale money as part of last years accounts, then surely they will be a part of this years? and providing we dont do anything really silly, would we have to sell Murillo or MGW to balance the books? Plus we are allowed a tad more wriggle room this year as we are in year two of the three, so our losses can be a bit higher. 

Can somebody please clarify this?

There are people on here that understand more than me but using my O level (grade B - very proud) maths:
Our allowable loss for rolling 3 years for the coming season is £83m
Our accounts show loss in the first 2 seasons of this period to be £40m & £52m total £92m
Therefore to comply with PSR this year we will need to show a £9m profit

We made a big profit on Brennan but a large chunk of this will have to pay off the purchase of Wood and Shelvey alone, no amortisation on them, thats before we get to the rest of the squad.

Thanks Sal

So basically, we're in the shit!...........................again!!!

[Shawoddyred]

It's why I think we need to appeal. We need to get them to agree that promotion bonuses are allowed thus making it much easier to comply with their rules this financial year

[wassy04]

It's why I think we need to appeal. We need to get them to agree that promotion bonuses are allowed thus making it much easier to comply with their rules this financial year

This is a fair point, the promotion bonus thing does seem unfair. They point out that teams avoiding relegation also have to pay out survival bonuses but that ignores the fact that we have to put the 20m loss against the EFL 13m. It has only occurred due to being in the PL and should be put against PL loss limits or excluded. The fact we're stuck with that 20m for 3 years just makes it even more prohibitive. It effectively made our loss threshold somewhere in the 40m range.

[JWJW]

Mangala is on a loan to buy for 30 million. Which would balance the books.

Provided Mangala leaves in the summer then we are ok.

Door would be open to a loan or two, but no purchases unless we sell to buy.

And in the summer the same people saying we made our own problems will no doubt be complaining we are not signing anyone........

[Paplane]

Murillo is almost certain to go imo. This would always be the case regardless of our ffp situation. He's just simply too much of a potential talent to not be scooped up by a top 6 club. I think we can absorb his loss pretty well. Boly, Niakhate, Omabamadele plus a young emerging talent coming in to take the Felipe/Murillo place ought to be enough. And presumably Wozza will be back in the summer too.

[Username]

It's why I think we need to appeal. We need to get them to agree that promotion bonuses are allowed thus making it much easier to comply with their rules this financial year

Surely Everton will address it in their case so why should we take the appeal risk in the event that our deduction could be increased?

[stirred]

I would be gutted if we are forced to sell Murillo to comply with these rules. It just shows what they're there for - so that clubs like us are forced sellers of our best players to the already rich clubs. It bloody stinks.