QUOTE (kurtsimonw @ Oct 12 2012, 12:13 AM)

I don't agree. Revenue dictates the majority of it. A club can always lower certain expenses, but you can't just increase revenue.
For example (and these figures are totally random so don't look into the numbers too much):
Milan revenue is £200m, expenses are £220m - That puts us at negative £20m
Everton revenue is £50m, expenses £50m - That puts them at breaking even.
Milan can (which is what you're saying they're doing now) cut down the wage bill, sell players and lets say their revenue sticks at £200m, but now expenses are at £180m. Milan now, despite spending £130m on the club more than Everton are actually in a better position.
This is why it's a load of balls to me. It's about meking the rich richer by making sure other teams can't break into the CL to improve their revenue. It's all geared towards keeping the status quo whilst hiding behind this Fair Play nonesense (which as showed above, is anything but 'fair'.)
Let's say Everton finish in Europe this season. This means that they have the chance to get increased commercial revenue (more sponsors, sponsor bonuses), and of course the money from the Europa league (TV revenues plus stadium attendance for Europe games).
So I would imagine around another 12 million a year.
So now their revenue has increased by another 12million. While their expense remains at the 50 million. So that's 12 million a year extra they have got.
Now earlier, there was a chance that another 'big' club could just come in a raid one of their players for zilch, and they're back to square one.
Now it's not happening so much. Chelsea or Man U or Man C cannot come in and plonk down a crazy sum from 25 to 40 million for Fellaini as was their wont.
For starters if they're plopping down say 25 million (@ 8 million a year for 3 years), and let's be honest, Fellaini at any of the big clubs is still squad material, so the only way they can convince him is to pay huge wages.
So let's say Big Club's expenses are 8 million for the transfer plus wages for Fellaini at 4 million a year (he is on 3 at Everton right now), they have to be prepared to put out 12 million a year extra on their expense sheet.
Question is, can they do it and not wreck their books. We already know that they are not making a profit. So will an additional 12 million on the deficit column still keep them within Europe?
On the other hand for an extra 1 million on their 'expense' column Everton can keep Fellaini at matching wages, and promise him the starting role..so they're building on it.
Plus they could of course reinforce their strength which is a great scouting system wherein they pick up great players on the cheap.
As for the web's oft repeated cliche argument..the big clubs will just flip the bird and go play their own league...don't be silly.
Real, Barca, Bayern (in fact ALL german CL clubs), Juve, Milan, Inter (probably), Man Utd, Chelsea are all in tune with FFP.
So now, unless you're suggesting Man City, PSG, a few second tier Spanish clubs going off to play a league of their own will make the world stop...then nothin's gonna happen. These clubs will have to come around eventually.