Championship clubs vote in favour of Financial Fair Play

[Postman Pat]

BBC Sport - Championship clubs vote in favour of Financial Fair Play

Championship clubs have voted to implement Financial Fair Play (FFP) regulations from next season.

Clubs will have to meet new pre-defined limits on pre-tax losses, with harsher sanctions implemented to clubs that fail to comply.

The changes will also prevent owners from funding their clubs through loans.

"They will begin to lay the foundations for a league of financially self-sustaining football clubs," said Football League chairman Greg Clarke.

He added that sanctions would not be implemented until the 2014-15 season.
The new regulations, based on Uefa's break-even model of FFP, will see limits on losses reduced from £12m to £5m over the next five seasons.

The changes will also force owners to fund clubs with equity as opposed to loans, while youth investment and accounting charges from past spending on players and stadium-building will not be included.

Promoted clubs who fail to adhere to the amendments must pay a fair play tax ranging from one per cent on the first £100,000 to 100 per cent on anything over £10m.

Non-promoted clubs will not be punished financially for failing to adhere to the new rules, but instead placed under a transfer embargo.

Leagues One and Two will continue to limit spending on wages to a proportion of turnover.

 

[Gritt23]

I like the principle, but I just can't see the authorities having the balls to see it through.

Are we honestly to believe that teh next Pompey faced with all the usual "save our club" bangwagon, and "this could be our last game EVER" bleeding hearts will accept their losses for the year being DOUBLED by a FL sanction? They will plead that any such sanction would put teh club into liquidation, and the FL won't go through with it.

I hope I'm wrong, as something needs to be done, but I just question the backbones of the governing body of this sport we love.

 

[beardy gull]

I like the principle, but I just can't see the authorities having the balls to see it through.

Are we honestly to believe that teh next Pompey faced with all the usual "save our club" bangwagon, and "this could be our last game EVER" bleeding hearts will accept their losses for the year being DOUBLED by a FL sanction? They will plead that any such sanction would put teh club into liquidation, and the FL won't go through with it.

I hope I'm wrong, as something needs to be done, but I just question the backbones of the governing body of this sport we love.

Non-promoted clubs will not be punished financially for failing to adhere to the new rules, but instead placed under a transfer embargo.

 

[Lush]

When does this kick in? Does it mean anything for us? Particularly this bit, albeit interest free?

"The changes will also prevent owners from funding their clubs through loans."

 

[Dirk Gently]

When does this kick in? Does it mean anything for us? Particularly this bit, albeit interest free?

"The changes will also prevent owners from funding their clubs through loans."

2014/15 season. never forget that loans, even soft loans from owners, still equal debt.

 

[Daffy Duck]

And 3 Champonship clubs voted against it.
Wonder who they might be?

I'd hazard a guess at Wet Sham, Scumhampton, & Reading.

 

[Gritt23]

Non-promoted clubs will not be punished financially for failing to adhere to the new rules, but instead placed under a transfer embargo.

Ok, sorry, didn't pick up on that.

However, here is another example for you then ..... Southampton last season, won promotion behind us from League One, and their accounts for year ended 30/06/11 showed a pre-tax loss of £11.7m. I would hope that the authorities would be prepared to fine them up to £11.7m for doing that as it would prevent teams from "buying" promotion, but I can still hear fans bemoaning that "we have a rich owner, and everyone else is just jealous and looking to punish our success."

As I say, I hope the authorities show teh backbone to impose these sanctions. The game desperately needs it.

 

[Dirk Gently]

And 3 Champonship clubs voted against it.
Wonder who they might be?

I'd hazard a guess at Wet Sham, Scumhampton, & Reading.

Nope. Leeds certainly voted against this, Bates always opposes anything like this.

West Ham is correct but not sure about the other - deffo not Reading, though. May well be Leicester or Cardiff.

 

[KZNSeagull]

We also "bought" promotion last year - we made a loss of over 7 million.

I am guessing re TB's interest free loan, that the club would have to convert that into shares sooner rather than later?

It is a step in the right direction I suppose - we will have to see if it works in practice. I would hope that all clubs are audited independently as I can see a lot of creative accounting going on.

 

[Seagull27]

When does this kick in? Does it mean anything for us? Particularly this bit, albeit interest free?

"The changes will also prevent owners from funding their clubs through loans."

"while youth investment and accounting charges from past spending on players and stadium-building will not be included"

I would hope that this would largely cover us.

 

[Lush]

And 3 Champonship clubs voted against it.
Wonder who they might be?

I'd hazard a guess at Wet Sham, Scumhampton, & Reading.

Leicester, Reading and Southampton.

According to Matt Slater at the BBC.

 

[seagullsovergrimsby]

"Promoted clubs who fail to adhere to the amendments must pay a fair play tax ranging from one per cent on the first £100,000 to 100 per cent on anything over £10m".
Not surprised that Reading and Southampton voted against if it meant losing £10M+ in fair play tax trying to get promotion back to the Premier League post 2014/2015 after the parachute payments have run out.

 

[Weststander]

Cardiff, Leicester & West Ham (just in case they don't go up).

The first 2 have owners who've turned them into mini-Chelski's, but without any success.
West Ham would be worried in case they're down for a while, and Gold/Sullivan wouldn't allowed to subsidise failure.
Southampton too, but they think they are up.

Leeds & Reading operate profits, and Reading are up and intend this time to not come back, so aren't bothered.

 

[Falkor]

Cardiff, Leicester & West Ham (just in case they don't go up).

The first 2 have owners who've turned them into mini-Chelski's, but without any success.
West Ham would be worried in case they're down for a while, and Gold/Sullivan wouldn't allowed to subsidise failure.
Southampton too, but they think they are up.

Leeds & Reading operate profits, and Reading are up and intend this time to not come back, so aren't bothered.

nope it was Leicester, Reading and Southampton.

 

[Cantona's Flying Dropkick]

So the two-faced palarse cheats voted for the FFP then. That's a pot calling a kettle black! It would be fair play if their "zillionaires" would pay off all the debts racked up through their cheating. That also goes for Pompey, Leeds and any other club that has gone into admin (probably excepting Saints, whose new owner paid most of their debts).