Wages at 65% of Turnover

**Pablo** · 31/05/2007, 8:55 AM

So Wages need to be at 65% of Turnover. Is that this season or next season?

And hand on heart is your Club under that level?

Remember turnover doesnt include a sugar daddy!

**Dyl10** · 31/05/2007, 9:12 AM

I would imagine the sentanta Cup wins for Drogheda are the only thing keeping them under. If they are indeed under

**Mr A** · 31/05/2007, 9:13 AM

You can probably forget about that whole 65% thing- the FAI won't have the competence or balls to enforce it. Good idea though.

**Steve Bruce** · 31/05/2007, 9:17 AM

There's ways round this 65% anyways in the way of Bonus's, appearence fees etc.

In theory though, a great idea.

**Ebmania** · 31/05/2007, 9:18 AM

I am sure we St Pats are below it. Yes we brought in 3 high profile players but still we have the Patron fund money and saved on Transfer fees. But with Uefa and cup games coming on board i see are bill getting higher but hopefully more income to balance it.

**galwayhoop** · 31/05/2007, 9:24 AM

if a sugar daddy (doesn't apply to us unfortunately) isn't included what are judged as turnover. obviously gate receipts, prize money & sponsorship but what else??

also as turnover is a gross figure is the 65% also gross or net, presumably gross.

**Pablo** · 31/05/2007, 9:26 AM

The 65% will be enforced in club licensing.

**monutdfc** · 31/05/2007, 9:28 AM

Originally Posted by Galway Harps

You can probably forget about that whole 65% thing- the FAI won't have the competence or balls to enforce it. Good idea though.

They were advertising a few months ago for an auditor to audit club licensing applications. The 65% cap falls under club licensing, so presumably this auditor will be tasked with checking that the 65% is not being breached. Not an easy job if you ask me, for the FAI, FBI or CIA.

**Dodge** · 31/05/2007, 9:34 AM

Originally Posted by Pablo

Remember turnover doesnt include a sugar daddy!

Have the FAI confirmed this?

**galwayhoop** · 31/05/2007, 9:36 AM

Originally Posted by Pablo

Remember turnover doesnt include a sugar daddy!

presumably a sugar daddy could contribute funds, by way of a donation each season, and it could be put down as sponsorship

**superfrank** · 31/05/2007, 9:43 AM

Originally Posted by Pablo

The 65% will be enforced in club licensing.

It can be very easily avoided. Writing up phoney accounts, only putting down percentages of players wages as wages but the rest down as something else.

**galwayhoop** · 31/05/2007, 9:56 AM

Originally Posted by superfrank

It can be very easily avoided. Writing up phoney accounts, only putting down percentages of players wages as wages but the rest down as something else.

EXPENSES

GAA style!!!

**Stato** · 31/05/2007, 10:18 AM

A few points on this.

For a start I'd guess that very few clubs are at or below 65%.

The FAI have not issued guidance on what counts as "turnover". Simple example, if a supporter pays €3 for a programme that costs €2.50 to print, what gets counted as turnover, €3 or 50c?

However there are a few things to note:

1) The FAI have copies of all of the player contracts and those contracts have to include all payments to players (including bonuses, appearance fees, expenses). If clubs make payments outside of the terms of those contracts they are breaching footballing rules (seem to remember Abramovic nearly falling foul of this a few years back by offering players extra money for winning the league). All the payments have to be gross (i.e. before tax is deducted)

2) The FAI get all the teamsheets from every match so it'd be quite easy to set up a spreadsheet that shows how much the wages costs should be for each club based on appearance fees in contracts etc.

3) The FAI get reports of attendances. They also have assessors at every match who make a estimate of the attendance. From that they can easily estimate gate receipt income.

4) The FAI get monthly management accounts from all clubs (except Longford

).

5) The FAI have appointed an accountant to go out and look at the books of every club on a regular basis to see if the figures they're getting tally with those books. If any problems come to light there'll be sanctions imposed.

**noby** · 31/05/2007, 10:31 AM

Simple example, if a supporter pays €3 for a programme that costs €2.50 to print, what gets counted as turnover, €3 or 50c?

€3 I'd imagine. Seeing as that is the turnover. You're getting your profits and turnovers mixed up I think.

**Pablo** · 31/05/2007, 10:36 AM

[QUOTE=Dodge;696105]Have the FAI confirmed this?[/QUOTE

They dont need to. Turnover is turnover.

**Macy** · 31/05/2007, 10:45 AM

Originally Posted by Stato

AThe FAI have not issued guidance on what counts as "turnover". Simple example, if a supporter pays €3 for a programme that costs €2.50 to print, what gets counted as turnover, €3 or 50c?

€3 is the turnover, 50c is the profit.

Originally Posted by Pablo

They dont need to. Turnover is turnover.

There was at least some debate as whether the FAI are accepting donations from benefactors as part of the turnover figure. I'm of the opinion that's the way they'll handle it, but as Dodge asks, I don't think it's been confirmed either way.

**Dodge** · 31/05/2007, 10:51 AM

Originally Posted by Macy

There was at least some debate as whether the FAI are accepting donations from benefactors as part of the turnover figure. I'm of the opinion that's the way they'll handle it, but as Dodge asks, I don't think it's been confirmed either way.

Thats why I asked Macy, I know Pats asked for confirmation last year and the FAI didn't get back to them (they may have since the meeting I was at)

**Pablo** · 31/05/2007, 11:12 AM

Originally Posted by Dodge

Thats why I asked Macy, I know Pats asked for confirmation last year and the FAI didn't get back to them (they may have since the meeting I was at)

But by definition donations are not turnover.

Theres no point in having the rule in the first place if Clubs can do that!

**Dodge** · 31/05/2007, 11:15 AM

Originally Posted by Pablo

But by definition donations are not turnover.

But are moneys raised by direct investment not income? You see why I'm asking now?

garyderry · 31/05/2007, 11:15 AM

Originally Posted by Pablo

So Wages need to be at 65% of Turnover. Is that this season or next season?

And hand on heart is your Club under that level?

Remember turnover doesnt include a sugar daddy!

Wether you like it or not, it is if the money is in the bank and belonging to the club.