BushBlade
Bullshit, Lies And Deceit Every Season
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If anyone else is wondering WTF is happening with FFP, as I am, I’ve found a summary of the current rules.
This season (2016/17), new ‘Profitability and Sustainability’ rules operate in the Championship.
Championship clubs voted to change their FPP rules in November 2014 as part of wide-ranging negotiations with the top-flight about future solidarity arrangements that has contractually linked the finances of The Football League and Premier League for the first time since the formation of the latter in 1992.
So, for the first time, clubs will be assessed over 3 seasons (rather than just a single season).
This change brings the Championship clubs into alignment with the Premier League – both have ‘Profit and Sustainability’ rules that are now fully aligned.
The maximum loss limit is now £13m per Championship season
Losses are assessed over three seasons (rather than just over the single, previous season).
The assessment of each club’s finances is a combination of a historic assessment (looking at figures for the two previous completed season) and an assessment over the season currently taking place.
Clubs are permitted to exclude some expenditure (Youth development spend, Charitable Community spend, and Women’s Football spend). For a Championship cub this rarely exceeds £500k per season (and is usually less).
Clubs relegated from the Premier League are allowed to make losses of up to £35m in respect of any season spent in the top flight – this should allow clubs to better manage the transition.
Any punishment for breach of the rules will be determined by an independent panel (the ‘Fair Play Panel’).
But what are the potential punishments?
Previously the Football League has only been able to either fine promoted clubs (a fine the Premier League didn’t help them collect), or impose a transfer embargo for historic overspending (which always like a stable-door/horse scenario).
With this change, a wide range of punishments are now available.
Nothing is off the table; the Football League are now able to impose a points deduction during the current season, or demote a club from an automatic promotion position into the play-offs (or out of the play-offs altogether).
Obviously we’re not going to be breaching FFP any time soon but the clubs that are close to breaching FFP may need to offload players in the JTW, if their income projections aren’t being met. It might be something we can take advantage of in the JTW.
This season (2016/17), new ‘Profitability and Sustainability’ rules operate in the Championship.
Championship clubs voted to change their FPP rules in November 2014 as part of wide-ranging negotiations with the top-flight about future solidarity arrangements that has contractually linked the finances of The Football League and Premier League for the first time since the formation of the latter in 1992.
So, for the first time, clubs will be assessed over 3 seasons (rather than just a single season).
This change brings the Championship clubs into alignment with the Premier League – both have ‘Profit and Sustainability’ rules that are now fully aligned.
The maximum loss limit is now £13m per Championship season
Losses are assessed over three seasons (rather than just over the single, previous season).
The assessment of each club’s finances is a combination of a historic assessment (looking at figures for the two previous completed season) and an assessment over the season currently taking place.
Clubs are permitted to exclude some expenditure (Youth development spend, Charitable Community spend, and Women’s Football spend). For a Championship cub this rarely exceeds £500k per season (and is usually less).
Clubs relegated from the Premier League are allowed to make losses of up to £35m in respect of any season spent in the top flight – this should allow clubs to better manage the transition.
Any punishment for breach of the rules will be determined by an independent panel (the ‘Fair Play Panel’).
But what are the potential punishments?
Previously the Football League has only been able to either fine promoted clubs (a fine the Premier League didn’t help them collect), or impose a transfer embargo for historic overspending (which always like a stable-door/horse scenario).
With this change, a wide range of punishments are now available.
Nothing is off the table; the Football League are now able to impose a points deduction during the current season, or demote a club from an automatic promotion position into the play-offs (or out of the play-offs altogether).
Obviously we’re not going to be breaching FFP any time soon but the clubs that are close to breaching FFP may need to offload players in the JTW, if their income projections aren’t being met. It might be something we can take advantage of in the JTW.