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StanSP

FFP Punishment On The Way?

By StanSP, in Leicester City Forum

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StanSP

StanSP

Posted
Posted

QPR got a 'world-record' fine of £40m for breaching FFP rules after a 3-year battle in the courts. 

 

Ourselves and Bournemouth highlighted to have breached it and EFL may come chasing...

Quote

 

Queens Park Rangers have been ordered to pay a world-record £40million fine after losing a three-year battle against being found guilty of breaching Financial Fair Play rules during their most recent promotion-winning campaign.

 

The Championship club’s claim that the English Football League’s FFP regulations were “unlawful” and that the fine levied on them was “disproportionate” was dismissed by an arbitration panel, with both parties informed of the decision last week.

 

QPR confirmed on Tuesday they would be appealing a verdict that also spelt bad news for Leicester City and Bournemouth, who the EFL is pursuing, too, for effectively cheating their way to promotion in 2013-14 and 2014-15, respectively.

 

Acknowledging it had taken “a long time” for the matter to be resolved, EFL chief executive Shaun Harvey said: “This decision vindicates the approach of the EFL board in defending this challenge. The board will continue to enforce our rules on clubs to protect the interests of those that do comply.”

 

QPR chief executive Lee Hoos added: “We are understandably disappointed with the decision and will be appealing.”

Rangers’ £40m fine is thought to be the largest ever issued in football and is potentially the biggest in sport after the £50m McLaren were docked over Formula One’s ‘Spygate’ scandal.

 

It is also more than double the amount Manchester City and Paris Saint-Germain ended up paying for breaching Uefa’s FFP regulations three years ago.

The Premier League and the then Football League both followed European football’s governing body in introducing cost-control measures in a bid to prevent clubs going bust.

 

Rules came into force in the lower leagues in 2012 which permitted Championship teams to make annual losses of £8m, with any side exceeding this placed under a transfer embargo or - if promoted to the Premier League - issued with a fine.

Fines were measured on a sliding scale for losses between £8m and £18m, with anything in excess of that calculated on a strict pound for pound basis.

 

QPR were widely expected to report massive losses in 2013-14 following their relegation from the Premier League on the back of a £41.1m spending spree on the likes of Andrew Johnson, Julio Cesar, Samba Diakite, Robert Green, Stephane Mbia, Park Ji-Sung, Esteban Granero, Junior Hoilett, Jose Bosingwa, Ryan Nelsen, Christopher Samba, Loic Remy, Yun Suk-Young, Jermaine Jenas and Tal Ben Haim.

 

But, after winning that season’s Championship play-off final, they reported a loss of just £9.8m after then owner Tony Fernandes, now the club’s co-chairman, and other shareholders wrote off £60m in loans as an “exceptional item”.

 

The Football League refused to do the same when it came to assessing their compliance with FFP regulations, imposing a £40m fine.

With Fernandes having already stated QPR would fight any such punishment and Harvey warning failure to pay could see the club thrown out of the professional game, a three-year legal battle ensued which both sides ultimaltely agreed to be settled by arbitration.

 

To complicate matters, the league relaxed its FFP rules in November of that year and harmonised them with those of the Premier League amid criticisms they were too draconian.

Since then, Championship clubs have been permitted to lose £39m over a three-year period - even more if they have spent one or two of those years in the Premier League.

QPR tried to exploit that decision to argue the original regulations had not been fit for purpose but to no avail.

 

It was unclear last night whether the club would have to record any fine in their latest annual accounts - putting them in danger of failing FFP again this season - or would be allowed to exclude it.

 

The statement from Harvey did not bode well on that front, with the EFL chief saying: “The board understand the challenges that this decision could create for our valued member club and will work with them, as and when the matter formally concludes.”

 

Pending the outcome of any QPR appeal, the EFL is now free to enforce multi-million-pound fines on both Leicester and Bournemouth.

Leicester won the Championship in 2014, the launchpad for their fairy tale 2016 Premier League triumph.

 

They went up on the back of losses of £20.8m but proclaimed their accounts were in compliance with FFP rules.

Bournemouth, fined £7.6m last year after posting losses of £38.3m during their promotion-winning season, were relying on QPR winning their case to overturn that punishment.

 

http://www.telegraph.co.uk/football/2017/10/24/qpr-ordered-pay-world-record-40million-ffp-fine-losing-three/

Livid

Livid

Posted
Posted

We haven’t been fined have we.

 

We were operating in some very murky waters but I think it would be an entirely different legal fight if they came after us. 

Guest

Guest

Posted
Posted

Half the players we bought never played (or were ineligible to play) so they shouldn't count in the figures.

StanSP

StanSP

Posted
  • Author
Posted
6 minutes ago, Livid said:

We haven’t been fined have we.

 

We were operating in some very murky waters but I think it would be an entirely different legal fight if they came after us. 

not yet. 

 

5 minutes ago, Captain... said:

Wahey it's the biannual FFP thread. Let's repeat everything we said last time and all be none the wiser.

considering EFL have won this court case, they have strong ground to use that against other clubs? I suspect previous conversations were based on QPR's fight against it. Now that EFL won that case against them, may be different...?

Corky

Corky

Posted
Posted

If we need to pay the fine then we just need to get on with it.

 

However, calling it Fair Play when clubs are allowed to lose a pretty hefty amount of money is odd.

brucey

brucey

Posted
Posted

judging by the sums quoted, we went into considerably less debt than the other two clubs, so any fine would probably not be much, less than 5m i would think

adam

adam

Posted
Posted

Bizarre rule and I don't have a clue how it works. How can man city and PSG be in the clear but us and Bournemouth are in the shit. All seems very unfair to me. 

Trav Le Bleu

Trav Le Bleu

Posted
Posted
39 minutes ago, Captain... said:

Wahey it's the biannual FFP thread. Let's repeat everything we said last time and all be none the wiser.

Everything we said last time and all be none the wiser.

cityfanlee23

cityfanlee23

Posted
Posted
21 minutes ago, tom27111 said:

Spent more money than they can afford = fine.

 

Is it just me that thinks that's ludicrous lol

That's the mentality of "the system"

 

Receive benefits and they get messed up and it's not your fault? here call this number and sit on hold for 20 mins at 55p per millisecond. 

Homeless and sleeping in a shop window? Here's a fine... 

Gone into accidental overdraft a week before payday? it's fine, we will cover the £8.78 purchase you made and charge you £8000 per day until you pay us back.

 

 

 

BoyJones

BoyJones

Posted
Posted

The message is don't go to arbitration. Go to European law courts. 

 

The various national and and international football associations think they are above the law - somebody must test this sooner or later.

urban.spaceman

urban.spaceman

Posted
Posted

They can't do anything to us until we're in the Football League as far as I recall.

 

And we're not the only ones that have (might have) transgressed "Financial 'Fair' Play" rules.

 

It's a farce anyway - the fact that we were the 5th  highest earner the season we won the league just proves how much of a Financially Unfair Farce football really is.

tom27111

tom27111

Posted
Posted

It'll all get kicked out of court. There's an ongoing lawsuit between clubs (Man City and PSG) and UEFA.

 

Under European law, you can't limit the spending of a business. 

 

How would you speculate and expand?

Nalis

Nalis

Posted
Posted
12 minutes ago, tom27111 said:

It'll all get kicked out of court. There's an ongoing lawsuit between clubs (Man City and PSG) and UEFA.

 

Under European law, you can't limit the spending of a business. 

 

How would you speculate and expand?

 

Good. It wasnt instigated by the small clubs, it was motioned by Chelsea who were crying because another team has started doing who they were doing for years but on a larger scale.

norwichfox

norwichfox

Posted
Posted
3 hours ago, justfoxes said:

Sorry if this has been posted before !!

But Reading on Sky that QPR have lost their appeal within the FFP during their promotion to the EPL back in 2013/14 and are set to be fined £40m, does it now look like they will be knocking on our door to fine us in a simple manner ?

 

http://www.skysports.com/share/11096493

I really doubt that that has been posted anywhere before......:)

Babylon

Babylon

Posted
Posted

They can knock all they want, no fines can be enforced unless we are in the championship, which we currently aren't. No point in paying it unless we get relegated, even then we could mount a challenge and drag it through the courts again for a few years.

 

Speaking from a purely business point of view, rather than a moral one.

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