The Football League has issued detailed guidance on its revised financial fair play regulations. Championship clubs are allowed a loss of £13m in 2015-16 or £39m on a rolling three year basis.
The regulations attempt to take account of clubs moving between divisions. This is necessary given that Premiership clubs are allowed to make a loss of £105m. However, the question that arises is whether new unfairnesses have been set up.
The Football League has issued detailed guidance on its revised financial fair play regulations. Championship clubs are allowed a loss of £13m in 2015-16 or £39m on a rolling three year basis.
The regulations attempt to take account of clubs moving between divisions. This is necessary given that Premiership clubs are allowed to make a loss of £105m. However, the question that arises is whether new unfairnesses have been set up.
A club that spent two years in the Championship and one in the Premiership would be allowed to make losses of £61m. Given that such a club would receive generous parachute payments, does this amount to a substantial advantage over a club that spent three years in the Championship?
The other question is that of enforcement. Two clubs are currently under transfer embargos: Blackburn Rovers and Nottingham Forest. However, they could escape during the season through net player sales.
The unresolved issue is the penalty to be applied to Queens Park Rangers. No announcement has yet been made, but it looks like being around £8m. Some see this as unduly lenient. However, the difficulty is that the regulations might well not stand up to a court challenge.