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

[WoodyFox]

1 minute ago, Nolucklcfc said:

Regardless we are obviously very close to a breach whether we go up and or stay down. Why would we be reluctant to propose a business plan anyway? 

Perhaps because there is no plan 

[Babylon]

1 minute ago, Bert said:

But within the rules, we look like we could be in trouble. 

All of this is based around our finances when in the premier league last March. Not around our finances now. 

 

The reality is, we have no idea where we currently stand. 

[KingsX]

[Chelmofox]

4 minutes ago, Scotch said:

I wonder what an "EFL business plan" would entail and why we are so against it if it's imposed to prevent us breaching FFP? I also wonder what our alternative to a business plan is? 

Sell KDH for 70 million, Daka for 50 million and Souttar for 35 million.

[Scotch]

4 minutes ago, Babylon said:

He doesn’t explain it very well at all. It’s got nothing to do with anything we’ve just filed with them.

 

We submitted as per the rules last year when we were in the premier league. The EFL have used those accounts which, which show a likely breach (these accounts are before sales, before wage reductions etc). So they demanded in November we submit a business plan, based on our premier league losses. 
 

We said no, we were a premier league club and as per your own rules our first period for submission is this season and not last season. The panel agreed with us and the decision was made months ago. The results were agreed to not be released until after the transfer window closed.

 

What the heck he’s on about I have no idea. 

So essentially what you're saying is, their projections on us breaking the rules by the end of the season are all based on our last financial report which took place whilst we were still in the PL and don't account for any finances from this year? 

[Les-TA-Jon]

My understanding: 

1️⃣ club submits it’s financials to EFL earlier this season, as normal, as all clubs do
2️⃣ based on this EFL projects that we will fail to comply by the end of this season 
3️⃣ based on their own rules they request additional docs and a business plan from Leicester
4️⃣ Leicester then (presumably on a technicality) contested that the rule doesn’t compel them to do so 
5️⃣ this were referred to an independent panel who have now ruled that Leicester are correct and they don’t *have* to submit anything 
6️⃣ EFL has confirmed this today and said “we’ll be changing this rule in the future to make this work as intended” 
7️⃣ Leicester own statement confirmed that they’re in discussions with EFL regarding financial rules
 

that about right? 

[Fox92]

25 minutes ago, UniFox21 said:

 

Dorsett explains this pretty well here.

 

To summarise; EFL projections say we'll maybe fall outside regs, so wanted us to prove how we'll stay in. 

We said no, went to an independent panel and they agreed with us 

Yet something else set to change because of us.

[AjcW]

I’d absolutely love for the club to be forced to stick to a strict business plan… because we don’t appear to have had one for quite some time  

[Gravel]

7 minutes ago, FrankieADZ said:

so thats why we've been getting some right crap decisions the past 4 league games then

I don't think FFP can be blamed for our players crap decisions in the final third 

[Babylon]

Just now, Scotch said:

So essentially what you're saying is, their projections on us breaking the rules by the end of the season are all based on our last financial report which took place whilst we were still in the PL and don't account for any finances from this year? 

Exactly. 
 

In March last year we were going to post a large loss. But we sold Maddison and Barnes before the PSR cut off and this that could have changed dramatically after that anyway. So it doesn’t even mean we broke FFP that season either.

[Mickyblueeyes]

sigh

[Sol thewall Bamba]

6 minutes ago, Babylon said:

All of this is based around our finances when in the premier league last March. Not around our finances now. 

 

The reality is, we have no idea where we currently stand. 

Here we go again

 

Mods close the thread before Babs gets upset about people speculating.

[coolhandfox]

This dates back to earlier in the season

 

The EFL would have looked at the clubs 22/23 accounts like all clubs in the league and has asked for a business plan on how the club is going to meet It's P & S obligation for 23/24.

 

Club has basically said you can't ask for that as 22/23 accounts occurred outside of your league.

[LCFCJohn]

6 minutes ago, Fox92 said:

Yet something else set to change because of us.

Another one for Forest and Coventry fans to be furiously discussing in the year 2247 

[Corky]

Just now, coolhandfox said:

This dates back to earlier in the season

 

The EFL would have looked at the clubs 22/23 accounts like all clubs in the league and has asked for a business plan on how the club is going to meet It's P & S obligation for 23/24.

 

Club has basically said you can't ask for that as 22/23 accounts occurred outside of your league.

If we were going to meet them then why contest it?

[Hitesh]

16 minutes ago, Bert said:

Get ready for loads of shit decisions going against us  

That's already happening

[Nolucklcfc]

8 minutes ago, Bert said:

Because we don’t need to, as we are not in breach of any of their rules. (Yet)

That or we aren’t doing so because we know we will be in breach. 

[5waller5]

Fair play to the club.
 

We’ve reported on time to the league we were in, we’re planning to report to the Championship as per their rules. 

They decided that because they suspected we’d break the rules they wanted us to prove we had a plan on not doing so. The rules they wrote themselves doesn’t allow that so we said no.

 

Can’t find any problem there, even from my own Rudkinphobic viewpoint. 

 

[Guest Chocolate Teapot]

12 minutes ago, Bert said:

Not like Sky to sensationalise something is it? 

It's this year's accounts and a projection. We're projecting to break the rules and don't want to publicise the plan to correct it.

 

Which is either a fire sake or getting promoted. Sky haven't sensationalised a thing there.

[RowlattsFox]

Made too many mistakes since winning the league and tried to be a bigger club than we are. Unable to match revenue to expenditure. 

 

We had our fun didn't we  paying the price now. 

[moore_94]

1 minute ago, Corky said:

If we were going to meet them then why contest it?

Why should we do something we technically have no reason to?

Edited 6 March 2024 by moore_94

[Guest Chocolate Teapot]

Just now, Nolucklcfc said:

That or we aren’t doing so because we know we will be in breach. 

They just don't want to show their cards for what they're going to have to do between May and June.

[Guest Chocolate Teapot]

Not sure the issue is whether we've complied with the efl or not. It demonstrates in plain sight, we have a major problem that will need addressing sharpish.

[Bert]

2 minutes ago, Nolucklcfc said:

That or we aren’t doing so because we know we will be in breach. 

No it’s because we aren’t in any breach of the rules. 

[Nolucklcfc]

Just now, Bert said:

No it’s because we aren’t in any breach of the rules. 

Yet … we are going to get done eventually.