Wolves sign Böðvarsson

[hal9thou]

So either its all down to FPP or we're over compensating, but not really.......

You seem to be dismayed at the lack of balance and not finding the "middle" ground in terms of our transfer policy but what if the club is adhering to FFP and thus the transfer budget is effectively dictated to us? There cannot be a "middle" ground but rather a set budget, end of.

So you're saying we've gone from one extreme to the other because of FFP. I'm not sure if that is entirely the case: does anyone actually know the figures involved? I'd genuinely be interested to see them. I seriously doubt that FPP alone can account for the current situation.

Your point about going from one extreme to another hardly makes sense

I'm afraid it does. It's called a boom / bust cycle. Basic economics. You have to find the median: lurching from one extreme to another is not a good buisness model.

[Timmy the Doc]

I get what you're saying but after the parachute payments run out and if we are still in the championship then our normal spending as u call it will be pennies. Not saying we should blow a fortune..done far too much of that,but do think we should maybe stretch bit further to get few flair players in this season which would give us a good squad going forward for next few years.

Unfortunately you have a point there. We have the fourth smallest ground in the Championship.

[Awin]

15th highest average attendance last season with 15,962

Sadly we are much more vulnerable to FFP than most.

[nasser95]

So either its all down to FPP or we're over compensating, but not really.......



So you're saying we've gone from one extreme to the other because of FFP. I'm not sure if that is entirely the case: does anyone actually know the figures involved? I'd genuinely be interested to see them. I seriously doubt that FPP alone can account for the current situation.



I'm afraid it does. It's called a boom / bust cycle. Basic economics. You have to find the median: lurching from one extreme to another is not a good buisness model.

Oh believe me I know well beyond basic economics, but the way to do it is gradual... Here, you want some basic economics, I'll give you some to grasp... We're x amount in debt... we can do three things: 1) keep spending like before, thus only going up in debt, 2) Spend a breakeven value, thus not incurring more debt, but still maintaining the previous debt, 3) Spend for more profitability, thus reducing previous debt and ensuring long term stability.

I think if it as a damped cycle, like this one, that happens until you can start spending consistently in your means, Ie a straight line:



That's basic economics...

[Hitman34]

Oh believe me I know well beyond basic economics, but the way to do it is gradual... Here, you want some basic economics, I'll give you some to grasp... We're x amount in debt... we can do three things: 1) keep spending like before, thus only going up in debt, 2) Spend a breakeven value, thus not incurring more debt, but still maintaining the previous debt, 3) Spend for more profitability, thus reducing previous debt and ensuring long term stability.

I think if it as a damped cycle, like this one, that happens until you can start spending consistently in your means, Ie a straight line:



That's basic economics...

One slight problem mate......

We have no debt.

[Ginger Ninja]

Unfortunately you have a point there. We have the fourth smallest ground in the Championship.

Yet some don't want us to move...

[West Acton]

Yet some don't want us to move...

They want all the benefits of a mansion whilst living in a one bedroom bungalow

[hal9thou]

I know well beyond basic economics, but the way to do it is gradual...

In which case you will have been more gobsmacked than the rest of us by the TF years. I'll say this for you: you did a wonderful job of hiding it.

You will also have appreciated this (May 2016) and his earlier blogs on the goings on at LR. For my money the best football forensic accountant in the business.

[Pinkie]

Oh believe me I know well beyond basic economics, but the way to do it is gradual... Here, you want some basic economics, I'll give you some to grasp... We're x amount in debt... we can do three things: 1) keep spending like before, thus only going up in debt, 2) Spend a breakeven value, thus not incurring more debt, but still maintaining the previous debt, 3) Spend for more profitability, thus reducing previous debt and ensuring long term stability.

I think if it as a damped cycle, like this one, that happens until you can start spending consistently in your means, Ie a straight line:



That's basic economics...

But we`re not in debt though are we nas?!

[nasser95]

But we`re not in debt though are we nas?!

Well we are though... we wrote off most of it in november I believe but there is still plenty and that's not taking into account the losses we'll have made in the last season which are certainly not insignificant given the situation with regards to a few players this season as well as the lack of TV money compared to the Prem which is really what kept our losses fairly low the previous season.

[Pinkie]

Well we are though... we wrote off most of it in november I believe but there is still plenty and that's not taking into account the losses we'll have made in the last season which are certainly not insignificant given the situation with regards to a few players this season as well as the lack of TV money compared to the Prem which is really what kept our losses fairly low the previous season.

Thought they wiped the debt not long ago,and also the money we`ve had from austin and others leaving aswell as parachute payments!

[West London is Rss]

I think the money gained from selling assets has in the main been banked rather than spent, due to FFP.

[James1979]

Well we are though... we wrote off most of it in november I believe but there is still plenty and that's not taking into account the losses we'll have made in the last season which are certainly not insignificant given the situation with regards to a few players this season as well as the lack of TV money compared to the Prem which is really what kept our losses fairly low the previous season.

Its shareholders money so not debt. It's the P&L that's important for FFP as far as I'm aware.

[nasser95]

Its shareholders money so not debt. It's the P&L that's important for FFP as far as I'm aware.

My point is that our P&L is definitely on the negative side and as I said, with the Lack of TV money, it's gonna be much more negative, leading to more debt that we can handle and the same situation where the shareholders have to write off the debt.

[Hove Ranger]

So either its all down to FPP or we're over compensating, but not really.......



So you're saying we've gone from one extreme to the other because of FFP. I'm not sure if that is entirely the case: does anyone actually know the figures involved? I'd genuinely be interested to see them. I seriously doubt that FPP alone can account for the current situation.

Well thats what the club is saying. Plus the fact FFP exists and needs to be adhered to, to avoid transfer embargoes etc. I think it's fairly plausible that it's due to FFP. I don't subscribe to the theory that something untoward is taking place. We are in the top 5 spenders in the division so far (in terms of transfer fees) and have one of the smallest stadiums. We have parachute money but we also have some big earners still on the books plus may still be paying off previous players and managers too.