By Dan Chapman
Championship clubs in the Football League have today voted in favour of Financial Fair Play rules, which are designed to ensure that clubs become financially self-sustaining.
Owners of clubs will be allowed to invest a maximum of £6 million next season, £5 million the year after and then £3 million in the 2014/2015 season. From the following season, clubs will be allowed to make a £2 million operating loss, as well as accepting up to a £3 million investment from an owner.
Clubs who fail to abide by the Financial Fair Play rules face either tariff fines or transfer embargoes, depending on whether the club has (whilst in breach) been promoted to the Premier League.
Responding on the vote, Full Contact’s Dan Chapman commented: “Greg Clarke of the Football League has said that this was a courageous decision by the 24 Championship Clubs, and I think he is absolutely right. However, one aspect of the Rules which I think will cause controversy is the fact that a Championship club chasing promotion to the Premier League, may take the view that – for example in the January transfer window – the financial penalties for breach are relatively modest compared to the benefits of promotion. I suspect that had the sanctions for breach been more serious – such as a points deduction – Clubs might have considered voting differently. I also note that youth investment by owners is disregarded for these Rules, and in line with the EPPP changes this seems to be sound, but it does give rise to potential creativity in what investment has been received for. Time will tell how much teeth the Football League will have to enforce these Rules.”
« Luke Sutton joins Full Contact Financial turmoil for football clubs ahead? »
The spearhead and Senior Partner of Full Contact, Dan is an experienced solicitor and advocate, with a specialist background in employment law and sports.
Sign up to receive the latest updates from Full Contact daily, straight to your inbox