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moore_94

EFL Statement - Club has no obligation to submit and agree business plan

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https://www.efl.com/news/2024/march/06/efl-statement--leicester-city/
 

Earlier this season, based on financial information submitted by the Club, the EFL’s independent Club Financial Reporting Unit (CFRU) concluded that the Club was forecasting to breach the Profitability and Sustainability (P&S) loss limits for the three-year period ending with financial year 2023/24.   
 

The CFRU determined that it was appropriate under P&S Rule 2.9 to require Leicester City Football Club to submit a business plan to demonstrate how it planned to comply with the EFL’s P&S spending limits.  

 

The Club argued that the relevant P&S Rule did not apply to it, meaning the CFRU had no right to require a business plan in respect of Season 2023/24.   

 

That matter was referred by the Club to the independent Club Financial Reporting Panel (CFRP) which concluded that under the Rules as currently written, Rule 2.9 did not apply to the Club and so it was under no obligation to submit and agree to a business plan.  

 

The CFRP decision has been published today and will help in informing the EFL on the potential Rule amendments that will be proposed for consideration by Championship Clubs in the future to ensure all Clubs are treated equally under the Rules.  

 

Leicester City is responsible for meeting its obligations in respect of the P&S Rules which will be assessed along with the submissions of all other Clubs in accordance with the League’s established processes. 
 

The League will be making no further comment on this matter at this time.  

Edited by moore_94
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4 minutes ago, FrankieADZ said:

someone gives us what it means in laymens terms

the EFL’s independent Club Financial Reporting Unit asked us for information on our business plan moving forward, as it looked like we were in breach of FFP and we told them to get fu*cked.

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Also highlights the precarious financial position we're in and inevitably if we don't get promoted then we are firmly in the shit. 

 

On the flip side, get promoted and that does go away somewhat but probably doesn't leave us with much room to invest next season 

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9 minutes ago, JimmyC74 said:

Isn’t this just a technicality - the EFL had no right under its P&S rules to ask for a business plan this season but, we will be tested when we file our annual financial statements and if we fail they will still nail us?

 

 

Seems that way

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I remember 18 months ago when people were telling me we weren’t in an financial trouble. This move absolutely stinks and if we don’t get promoted i really fear for the future of the club.

 

We needed new owners yesterday.

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5 minutes ago, Ricey said:

EFL think we are going to break P&S. They think that they can demand a business plan from us to show how we plan on solve it. Turns out they can’t do that.


Good job really, I doubt there is a plan.

*cut to Rudkin scrambling for a dictionary to look up the word "plan"*

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1 minute ago, Dames said:

I remember 18 months ago when people were telling me we weren’t in an financial trouble. This move absolutely stinks and if we don’t get promoted i really fear for the future of the club.

 

We needed new owners yesterday.

This still wouldn't have solved the problem. Our expenditure far outweighs revenue and nothing much new owners could do to solve for that

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