Football League Approve Financial Fair Play Rules

By Community | April 25, 2012

The Football League have announced they are to implement Financial Fair Play (FFP) regulations in all three of its divisions, after Championship clubs voted in favour of a breakeven approach based on UEFA’s FFP regulations.

From the beginning of next season, the Championship will join League 1 and League 2 clubs in applying rules that exert greater control over club expenditure with each division having the flexibility to determine their own specific approach.

Championship clubs, who will have to provide the Football League with their accounts by December 1st each year, will be obliged to make sure their annual losses drop from an “acceptable deviation” of £4 million in 2011/12 to £2 million by 2015/16, certain areas of spending being excluded, including academy and community programmes. 

The allowed level of shareholder equity investment will be reduced from £8 million in the 2011/12 campaign to £3 million by 2015/16. 

Clubs which fail to comply with the rules will face sanctions but not until 2013/14, after “a sensible period of transition”. 

Sides that have been promoted to the Premier League will have to pay a Fair Play Tax on their spending excess, which ranges from 1% on the first £100,000 to 100% on anything over £10 million with that cash going equally to the clubs who have kept to the regulations. 

Teams not playing by the rules and remaining in the Championship will face a transfer embargo. 

Clubs relegated from the Premier League won’t face sanctions during their first season in the Championship if they have kept to Premier League regulations. 

Football League chairman, Greg Clarke, said: “On the pitch we have three exciting, competitive divisions with crowds at their highest levels for 50 years. 

“But that success isn’t necessarily being reflected on our clubs’ balance sheets and we have to remedy that situation or face an uncertain future. 

“I’d like to commend the Championship clubs for the courageous decision they have taken today. It means that for the first time, all 72 Football League clubs have agreed to take concerted action towards controlling their financial destiny. 

“Whilst we cannot promise that these rules will deliver results overnight, they will begin to lay the foundations for a league of financially self-sustaining football clubs.”

by Ismail Uddin