28 Apr 2020 19:01:07
Evening Ed002.

Not liverpool related but there's lots of talk regarding the Newcastle take over.

Rich owners but clearly have to adhere to FFP. I'm sure they will initially want to invest in the team but how can the spending be monitored?

{Ed002's Note - The FFP process monitors spending. Clubs are allowed to request permission for an initial additional spend after new owners take charge, but they then have to fall within FFP.}

28 Apr 2020 19:17:50
Ok thanks 002, wasn’t aware of that.
Just out of interest, is there a cap on how much they can ask for? ( Initial spend )

{Ed002's Note - It has to be a reasonable amount, there is no specific figure.}

28 Apr 2020 19:49:09
Edd002, can they just come out and say that they're investing £900m or would that be classed as unreasonable? Because they can certainly afford to and there is an argument that a £900m investment would drastically increase the value of their new asset.

{Ed002's Note - It is a ridiculous question. How would it increase the value of the asset?}

28 Apr 2020 20:47:40
Ed002. Man City's owners have spent about £1bn? How much is Man City worth now to what it was when they bought it? Probably not £1bn more but very significantly more, also factoring inflation into the equation?

I was merely asking, are they allowed to suggest that much money? As you did state there is no official cap to how much they can request.

{Ed002's Note - The owners spent the bulk of the money years ago - long before sponsorship and media income twisted the values of English sides.}

28 Apr 2020 20:57:08
Thanks Ed002, I understand that they did that before FFP was introduced.

I'm just asking if they suggested investing a very large amount of money, mainly into the playing squad, with the right management behind it, they could be challenging or qualifying for Europe, hence their income becoming significantly higher and thus, the asset is worth more.

I'm far less privy to the ratio of investment needed to raise the value of the club than you are, but clearly, significant investment in the playing squad increases the income and then hence the value of the club/ asset.

Am I way off the mark here? I'm happy to be educated if I'm very wide of the mark.

{Ed002's Note - It is not a sensible question - it is a light year away from reality.}

29 Apr 2020 13:46:46
ed002 do you think owners that can afford it should be able to spend what they like and is this good for football or bad. I don't know myself its good with extra money coming into the game because transfer do normally work there way down but then the PSG signing of Naymar sent transfer fees to a new level what was not good for football because average players started going for way to much money you could put Coutinho don't know what the fee was but know he was not worth nowhere near that.

{Ed002's Note - No, letting owners spend what they like would not be good for football.}

29 Apr 2020 15:10:50
He should build a Disney World esc theme park and call it Newcastle Football Club land, then people all over Europe would come. That would create massive income and FFP wouldn’t matter anymore.
Everton did it years ago, the ‘Goodison park Circus’ brings in loads of punters.