English FA to introduce transfer embargo on clubs who are late paying their taxes

**brianw82** · 21/05/2009, 4:42 PM

http://www.teamtalk.com/football/sto...341206,00.html

Not an LOI story, obviously, but does anyone think this should be introduced here?

**Mr A** · 21/05/2009, 4:43 PM

For the clubs' own sake.. yes, bring it in and bring it in now.

**passerrby** · 21/05/2009, 5:19 PM

not to sure but would that not be punishing players for clubs mismanagement

**Ezeikial** · 21/05/2009, 5:25 PM

Abolutely yes - as long as some clubs continue to trade recklessly and attempt to buy the league title without the necessary resources, competing clubs who are more prudent (realistic) continue to be unfairly disadvantaged.

But the priority should be to properly enforce the existing regulations

**Greenforever** · 21/05/2009, 5:25 PM

Originally Posted by passerrby

not to sure but would that not be punishing players for clubs mismanagement

How would it punish a player, if the club can't pay it's taxes they won't be able to pay the players wages, surely it's in the player's interest to know the club he is signing for can pay it's bills on time???

I assume it would only stop a club buying and not selling..

**pineapple stu** · 22/05/2009, 8:17 AM

Originally Posted by brianw82

http://www.teamtalk.com/football/sto...341206,00.html

Not an LOI story, obviously, but does anyone think this should be introduced here?

I suggested something similar on the original Cork in trouble thread (as in, the original one from this year).

Late with one P30 (monthly tax return) - warning. Late with a second one - punishment, be that a fine or an embargo. Late with any more, points deduction. Clubs seem to use late payment of tax as a cash flow far too often; have to address that problem.

**passerrby** · 22/05/2009, 12:50 PM

Originally Posted by Greenforever

How would it punish a player, if the club can't pay it's taxes they won't be able to pay the players wages, surely it's in the player's interest to know the club he is signing for can pay it's bills on time???

I assume it would only stop a club buying and not selling..

it does not necessary follow that if a club does not pay its tax it is not paying a players wages but i take you point

**A face** · 22/05/2009, 2:18 PM

Originally Posted by pineapple stu

Late with one P30 (monthly tax return) - warning. Late with a second one - punishment, be that a fine or an embargo. Late with any more, points deduction. Clubs seem to use late payment of tax as a cash flow far too often; have to address that problem.

Thats the way to go and the sooner it is done the better. Although i would and in another month there though. If you have a summer break and you have crap fixtures in the months on either side of the break then a club could be fairly snookered and they might not be able to avoid it.

**Dodge** · 22/05/2009, 3:07 PM

Originally Posted by A face

Thats the way to go and the sooner it is done the better. Although i would and in another month there though. If you have a summer break and you have crap fixtures in the months on either side of the break then a club could be fairly snookered and they might not be able to avoid it.

They provide monthly budgets, they know when the fixtures occur. Plan accordingly

**RoversHead** · 22/05/2009, 3:36 PM

Common sense stuff so I wouldn`t hold my breath.

**pineapple stu** · 23/05/2009, 11:26 AM

Originally Posted by Dodge

They provide monthly budgets, they know when the fixtures occur. Plan accordingly

Exactly. Far too much made of the summer break.

If you add in another month before giving out to them, they can be late with three payments out of eight and maybe not get any punishment other than a fine.

**Dodge** · 23/05/2009, 11:45 AM

For the record the break is a stupid idea. It is ridiculous that clubs could go 3/4 weeks without a gate.

But that doesn't mean they shouldn't pay their taxes

**John83** · 23/05/2009, 2:12 PM

Originally Posted by Dodge

For the record the break is a stupid idea. It is ridiculous that clubs could go 3/4 weeks without a gate.

But that doesn't mean they shouldn't pay their taxes

I think it's ****ing insane that people think it's reasonable that clubs are unable to go 3 weeks without a gate - gates being a small portion of most clubs' budgets - without running into cashflow problems. They teach this stuff to 12 year olds in school.

**pineapple stu** · 24/05/2009, 12:41 PM

Not to mention that there's usually a midweek series of games straight after to help counter the problem.

**brianw82** · 24/05/2009, 7:46 PM

Originally Posted by John83

I think it's ****ing insane that people think it's reasonable that clubs are unable to go 3 weeks without a gate - gates being a small portion of most clubs' budgets - without running into cashflow problems. They teach this stuff to 12 year olds in school.

I take it you meant that gates are a large portion of most clubs' budgets?

**John83** · 24/05/2009, 9:04 PM

Originally Posted by brianw82

I take it you meant that gates are a large portion of most clubs' budgets?

Depends on the club. For some clubs, it might be half. For many, it's much less.

20 * 1,000 * €10 = €200,000
20 is from 18 home league games, couple of cup.
1000 is a typical crowd.
€10 is entry, allowing for kids and concessions.

Few clubs would have budgets much shy of €500,000. Lots have gates well under 1000.

Even in the extreme case of, say, Cork:
25 * 3,000 * €15 = €1,125,000.
That figure is optimistic, and is still, what, half their annual budget? Certainly a lot less in the past.

Fundraising is probably the single most important aspect of running a club here.