Thursday, November 06, 2014

Football League Championship agrees new FFP rules

England’s Football League Championship agreed new financial fair play regulations at an Emergency General Meeting in Derby on 6 November, which are designed to bring the division’s approach in line with that of the FA Premier League. ‘At an EGM at Derby County, Championship clubs have agreed a new set of “Profitability and Sustainability” Regulations that will bring the division’s approach to Financial Fair Play into line with that used by the Premier League,” read a Football League media release. ‘From the beginning of the 2016/17 season, Championship clubs will have their financial performance continuously monitored over a three season timeframe and will be permitted to lose up to £15 million during that period without having to be prescriptive over how that loss will be funded. In addition, they will be permitted to lose more than £15 million, but not more than an aggregate of £39 million (compared to an equivalent figure of £105 million in the Premier League) but will be subject to additional regulation when doing so. This will include providing evidence of Secure Owner Funding and Future Financial Information for the two seasons ahead.’

‘A club that moves between the Premier League and Championship will be assessed in accordance with the average allowance that is permitted in the relevant division (for example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61 million - consisting of one season at £35 million and two at £13 million),’ continued the release. ‘Clubs also agreed transitional arrangements for the period leading up the introduction of the new regulations in 2016. These can be summarised as follows: 

• The existing Championship FFP framework will remain in place for the 2014/15 and 2015/16 seasons.

• Any sanctions for accounts relating to the 2013/14 season will continue to take effect as intended (and in accordance with the amounts specified at the time).

• The maximum deviation under the regulations will remain at £6 million for 2014/15 and will increase to £13 million in 2015/16, in line with the maximum loss (£39 million over three seasons) permitted under the new rules. Following the Championship’s decision, The Board of The Football League has been given a mandate by its clubs to complete a new financial solidarity arrangement with the Premier League in accordance with that currently under discussion between the two leagues.’

The launch of new regulations for the Football League Championship was predicted at Player Contracts 2014, a two-day conference organised by World Sports Law Report. It is understood that the meeting was called in response to the current situation, where a number of Football League Championship clubs could face sanctions for breaching the current regulations in December / January.

 


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