Sustainability index - only Forest below us

fritter

fritter

UTC Legend
https://www.planetsport.com/soccer/...ranks-liverpool-premier-leagues-best-run-club

I found the article above on sustainability index for football clubs.
It said that Forest spend 202% of their revenue on players’ wages. They are bottom and we are second bottom. Our financial solvency score is 9.4 out of 40. Not sure what time period data is for but it won’t include this transfer windows spending.

I had a look at the actual report and the index is based on 4 criteria or sub-indicators. The financial solvency one details are below. The rest is in the document.

The four sub-indicators and their weights are:
• Financial Solvency (40%)
• Governance (30%)
• Fan Engagement (20%)
• Equality Standards (10%)

Financial Solvency is calculated as the weighted sum of:
• Current Assets / Liabilities (30%)
• Short-term loans measure (25%)
• Loans repayable within one year as % of revenue
(25%)
• Wages as % of revenue (20%)
The data comes from official accounts filed with Companies House.

the full report is below, should you be interested.
https://static1.squarespace.com/sta...air+Game+Sustainbaility+Index+26+Jan+2023.pdf
 
Without knowing the time period this report is based on, it seems likely that it has been Overcome by Events.
 
https://twitter.com/x/status/1742225929080815926

Premier League clubs will learn in the next two weeks if they will face charges for new breaches of financial rules, with Nottingham Forest seen by experts as being most at risk.

Forest are considered to be sailing close to the wind because of their heavy spending while in the Championship and since winning promotion, and there are also concerns that Everton could face a second charge in consecutive seasons of breaching profit and sustainability rules (PSR).

Under a new system brought in by the Premier League for this season, charges for straightforward breaches will be fast-tracked and dealt with by early April, with any points deductions applied to this campaign.
 
https://twitter.com/x/status/1742240775709081989


Nottingham Forest have enlisted leading sports lawyer Nick De Marco as they attempt to avoid a Premier League charge for breaching financial regulations.

Forest will discover later this month if they are to become the third top-flight club charged with breaking the Profitability and Sustainability Rules [PSR], following Everton’s 10-point deduction last year and Manchester City’s alleged breach…

…Forest submitted their accounts ending June 30, 2023, last week with the crux of their argument is understood to centre around the sale of Brennan Johnson to Tottenham.

Johnson was sold for £47.5 million on deadline day – a record sale for the club – and Forest will insist that they would have received a far lower fee if they had accepted an offer earlier in the summer.
 
Who would have thought that notts forest are not complying with ffp after their lottery winning binge last season.

We can’t keep spending on players but new signings are spread over 5 years so less ffp risk. Does reduce our ability to strengthen in future windows though.
 
London Cherry said:
Does anyone know whether we might at risk too? Hopefully not.
Click to expand...
I'd say unlikely. I know transfer flows don't tell the whole story but over the last 5 years we've had a net spend of £120M which is mostly the summer window just gone. Forest has had over £260M net spend.

We also had none of the Lingaard wages type stuff going on and a much, smaller squad.
redharry said:
Latest in the Telegraph
www.telegraph.co.uk

Nottingham Forest and Everton facing anxious wait over potential financial breaches

Premier League clubs that break profit and sustainability rules face immediate sanction that would be imposed before end of current campaign
www.telegraph.co.uk www.telegraph.co.uk
Click to expand...

Beat the paywall here: https://web.archive.org/web/2024010...rest-everton-ffp-profit-sustainability-rules/
 
DJ said:
…Forest submitted their accounts ending June 30, 2023, last week with the crux of their argument is understood to centre around the sale of Brennan Johnson to Tottenham.

Johnson was sold for £47.5 million on deadline day – a record sale for the club – and Forest will insist that they would have received a far lower fee if they had accepted an offer earlier in the summer.
Click to expand...
We had the reverse issue that we made a purchase before we received Premier League money and got stung so not sure what makes Forest special in this regard. Surely you can't just flex your dates to suit whatever makes the accounts look good?
 
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Kudos said:
We had the reverse issue that we made a purchase before we received Premier League money and got stung so not sure what makes Forest special in this regard. Surely you can't just flex your dates to suit whatever makes the accounts look good?
Click to expand...

Indeed, but we did however eventually end up with a much lesser fine because of it. Which was never really picked up by the mainstream media.
 
Kudos said:
We had the reverse issue that we made a purchase before we received Premier League money and got stung so not sure what makes Forest special in this regard. Surely you can't just flex your dates to suit whatever makes the accounts look good?
Click to expand...
You can formally change your accounting period end date but can’t include income outside the accounts dates in statutory accounts for one off transactions (as opposed to more complex long term projects).

It depends on what the terms of the calculation actually state. Would expect it to be the accounting periods so Forest doing this shouldn’t be allowed even if there were sound commercial reasons.
 
It’s interesting. The FA have made a difficult bed now. Everton cooperated while Man City got lawyered up. Those lawyers are picking through every minute detail and challenging it and will kick the can down the road for years. Everton just put everything on the table and explained some of the mitigating circumstances and got clobbered.

They won’t again, and Forest have learned from the Everton situation. Both have appointed superb legal teams and expect the same drag as City.

Was reading today the rules will change for next year and it’s becoming more wage focused and less expenditure focused as that is less of a minefield.
 
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