Clubs make legal threat to Football League over financial fair play

[Jace]

The fines are just completely unrealistic if they are honoured they will just bankrupt football so its hard to see it being fully enforced. Did us the world of good trying to comply with it though 

[dsr-burnley]

I don't see how the fines will bankrupt anybody, because they only apply to promoted clubs.  If QPR, for example, lose another £65m or so this year, the fine is (I believe) just short of £50m.  So they can pay that out of the Premier League TV money, no problem.  And if that means they can't afford a competitive squad, so be it - they should have thought of that earlier.

[davieG]

Charlton have hit out at the recent decision to amend to the Financial Fair Play rules, branding the changes "bitterly disappointing" and "staggering".

 

Championship clubs last week voted to increase the losses they allowed to incur to £13million a season, a move which has angered the Addicks who have strived to ensure their finances comply with the existing regulations.

David Joyes, Charlton's chief financial officer, said: "From next season onwards Championship clubs will be allowed to incur FFP losses that are more than double the level of allowable losses currently in place, with an increase to £13million per season.

"Given the FFP allowable loss already includes 'add-backs' for cost areas like fixed-asset depreciation and net expenditure on youth academy, allowable losses will actually be in the region of £15-£17million per season!

"This is staggering given the initial aim of FFP was to make the Championship a more financially stable environment and move clubs towards a break-even position.

"The vote last Thursday was a tight affair in the Championship, with a 75 per cent majority required of voting clubs to change the FFP rules. Eighteen out of 24 clubs voted in favour of the new rules, so the proposal scraped through.

"We, along with five other clubs, voted against the proposal as it represents a competitive disadvantage to ourselves who are looking to create a sustainable business model and minimise losses.

"All clubs must submit their FFP calculations by December 1 for the 2013/14 season so it will be interesting to see in the coming weeks how the Football League enforces the sanctions on those non-compliant clubs."

[DANGEROUS TIGER]

If you've ever had a firm go bust on you and gyp you out of the money you've earned, through no fault of your own, then you might be a little bit more sympathetic to what the League is trying to do. 

Yes, you're right Webbo. It is in the club's interest to have this in place. Without it, doubtless some clubs could be in dire financial trouble, in the near future.