Financial Fair Play in the Championship

[Wade Garrett]

Barnsley, while clarifying their position on the speculation surrounding Mark Robins' future at the club, have revealed that a meeting of all (presumably current, rather than next season's) Championship chairmen/CEOs has been convened for this coming Thursday to discuss a proposed "break-even test" for clubs in the division.

 

Clearly, based on last year's financial figures and the likelihood that the position probably hasn't changed a great deal this year, it's going to have an impact on us.

 

The proposal is for a test similar to that being brought in by UEFA for clubs wishing to compete in the Champions League and Europa League competitions, with sanctions applied to clubs who don't "pass" the test, which could include transfer embargos, a competition tax or a fine structure depending on how badly the club fails the test.

 

The competition tax would likely be a system where clubs that fail the test have to pay an amount as a proportion of their losses into a central fund which then gets distributed among the clubs that do pass the test - that then gives clubs an additional incentive to break even, as they'll then be eligible for a payout from this fund.

 

Any thoughts?

 

It would have to be voted by the clubs in next season's championship.

Does it have to be a unanimous vote? If it does I can't see it going through. Different clubs have different types of funding. I still think we should be able to pay what we like.

[Saint_John]

I assume that the results from any discussions by the Chairman will be brought in starting in two or three years from now?

They DIDN'T last season.

 

It took some finding but they had their AGM in Malta in early June and voted on some rule changes.

http://www.football-league.co.uk/footballleaguenews/20100608/football-league-agm-report_2293334_2070706

 

 

 

 

• The new financial reporting rules will see clubs that fail to lodge their accounts with The Football League, at the same time they are required by Companies House, being hit with a transfer embargo.
  
• The League's regulations on clubs that go into administration have been amended to ensure that they are effective in instances where the football club is part of a group company.
  
• Clubs have voted in favour of new rules restricting clubs' first team squads to 25 players over the age of 21, of which ten must be 'home grown' (registered in domestic football for three seasons before their 21st birthday). There will be no restriction on players under the age of 21.
  

 

and then they followed that up with an EGM a few days before the start of the season (just to give pennies to L1 Clubs ?)

http://www.football-league.co.uk/footballleaguenews/20100804/clubs-approve-rule-changes_2293334_2110947

 

 

 

 

1. Further enhancements to the Owner's and Director's Tests which will include:

• Creating an Annual Reporting process for all club directors.
  
• Prior disclosure of new directors and a prohibition on persons taking up the role until clearance is received from The Football League.
  
• Introducing a restriction on anyone owning an interest in a club where they are prevented from entering the UK or are unable to have funds available in the UK for their own benefit.
  

2. Additional financial reporting requirements for Championship clubs including:

• The provision of 'future financial information' relating to the subsequent season.
  
• Clubs to demonstrate they have no overdue transfer fees, compensation fees, key employee wages or PAYE/NIC.
  
• Clubs in default or clubs with business plans that cast doubt on their ability to fulfil fixtures or pay football creditors will be required to submit to budget constraints including possibility of transfer embargo.
  
• The change of ownership of more than 30% of club will trigger fresh reporting requirements.
  

3. The requirement to publish the identity of any individuals owning 10% or more in any club.

4. The absolute prohibition of 'third party interests' in players.

5. A new standard player contract in line with that in use in the Premier League.

 

 

It could be argued that none of the changes should have had a major effect on Clubs for the coming season, however the changes still came into effect last year.

 

IMO it has always seemed strange to me that the Clubs announce their ST prices first (from March onwards), arrange any Transfers (including wages) in the months from March onwards and then finally agree the Rules that they are going to play under from June onwards.

? Prehaps there is going to be a vote this year on something that could effect the ST prices. ??

 

p.s. I didn't know about the 25 players over 21 rule, not that it is should effect any Club unless Loans are counted in that figure.