Financial Fair Play in Championship

[deletebeepbeepbeep]

Suprosed this hasn't been posted, or has it?

Championship clubs are set to introduce their own financial fair play system where teams can spend only what they earn. The Football League chairman, Greg Clarke, said the Championship clubs have voted in principle to mirror the Uefa system that will affect clubs in European competition from 2014.

The system will be proposed at the Football League's AGM in Cyprus on Thursday, where it will also be put forward that League One clubs move towards the introduction of the salary cap currently in force in League Two, limiting teams' outlay to 60% of their turnover on wages.

Clarke said: "The Championship clubs voted to look at financial fair play and in principle decided that was the road they wanted to go down. I think it's essential, and the energy to solve this is coming from the clubs themselves.

"It's a perfect storm in that a lot of things have come together to make this happen, including, of course, the level of debt in the game – £700m in the Football League, most of that in the Championship – and big losses being racked up by the clubs."

Clarke said if the proposal was passed the next six months would be spent on developing a system and ensuring it was fair and transparent. He said there had been some opposition to the move but a strong majority had been in favour. It is understood that the Leeds United chairman, Ken Bates, is among those backing the system.

"These things are never unanimous and a couple of the clubs would rather not have constraints on how much money they can spend," Clarke said. "I would hope this could lead to a return to the days when local communities could own the clubs rather than rely on offshore benefactors. There is also a proposal for League One clubs to shadow the League Two system in the coming season with a view to their adopting it the season afterwards."

The proposed spending constraints also reflect concern over income – the League's new £195m domestic TV deal is a 26% drop on the previous one. Clarke said: "Football finances are difficult and the UK television deal is less than the last one, and there are no signs that the economy is going to recover quickly."

One area where income has gone up is in parachute payments to clubs relegated from the Premier League – they can earn up to £48m over four years. There have been fears that could have a distorting effect and lead to yo-yo clubs but Clarke said there had been little evidence of that so far.

He said: "Largely the parachute payments are absorbed by the club paying their debts and players. Last year three clubs came down and did not make the play-offs. This year we have two financially distressed clubs relegated in West Ham and Birmingham, while Blackpool have run quite a tight ship, and it will be interesting to see whether the financial distress overcomes the parachute payments in terms of giving them a competitive advantage."

The Football League has often taken the lead in bringing in new systems. Its track record includes: the fit and proper person's test for directors; clubs disclosing agents' payments; an independent chairman and independent directors; the spending constraints operating in League Two.

Championship clubs to introduce financial fair play system | Football | guardian.co.uk

Who are the two clubs that didn't back it? Cardiff? Leicester? PALACE?

 

[sten_super]

Suprosed this hasn't been posted, or has it?

Championship clubs to introduce financial fair play system | Football | guardian.co.uk

Who are the two clubs that didn't back it? Cardiff? Leicester? PALACE?

I think this is generally a good idea; however I do have some reservations that it simply maintains the status quo. It's not explicitly mentioned in this article, but does this limit on spending cover all areas of expenditure? If so, how can a club ever build a new stadium? From a more personal point of view, we'd have been completely stuffed if the money to build the new stadium had to come from our own income, and would never have stood a chance of building it or progressing as we have. Should other clubs be denied that opportunity?

 

[Biscuit]

I think this is generally a good idea; however I do have some reservations that it simply maintains the status quo. It's not explicitly mentioned in this article, but does this limit on spending cover all areas of expenditure? If so, how can a club ever build a new stadium? From a more personal point of view, we'd have been completely stuffed if the money to build the new stadium had to come from our own income, and would never have stood a chance of building it or progressing as we have. Should other clubs be denied that opportunity?

I read it as just mirroring the league two system eg limiting the clubs wages to 60% of it's turnover.

 

[deletebeepbeepbeep]

I read it as just mirroring the league two system eg limiting the clubs wages to 60% of it's turnover.

I think this is the case. If so, we'd be up there with the top 10 in this league based on season ticket sales?

 

[sten_super]

It says that there will be a vote on League One clubs foreshadowing the League Two measure which limits wages to 60% of turnover, but doesn't say that this is what is being voted on in the Championship.

Having said that, it says they are looking to mirror the UEFA 'financial fairplay' rules, which do exclude stadium and youth scheme costs. In which case, I'm in favour.

 

[Biscuit]

I think this is the case. If so, we'd be up there with the top 10 in this league based on season ticket sales?

I honestly don't know. Maybe? I just think of the likes of Leeds and all the other clubs with parachute payments and I wonder..

 

[sydney]

are they trying this out on the champs before they impose it on the prem. ......? i doubt it..is it fair then ..?

 

[Scotty Mac]

I think this is generally a good idea; however I do have some reservations that it simply maintains the status quo. It's not explicitly mentioned in this article, but does this limit on spending cover all areas of expenditure? If so, how can a club ever build a new stadium? From a more personal point of view, we'd have been completely stuffed if the money to build the new stadium had to come from our own income, and would never have stood a chance of building it or progressing as we have. Should other clubs be denied that opportunity?

if its the same as the uefa ones, then it will mean transfers and wages

stadiums, training grounds, youth accademies and the like dont come under it - it's purely what happens on the playing side

 

[drew]

The bigger question, if we are talking about financial common sense is why did the English Football league deem it necessary to hold their conference in Cyprus!!!!!

 

[deletebeepbeepbeep]

The bigger question, if we are talking about financial common sense is why did the English Football league deem it necessary to hold their conference in Cyprus!!!!!

I thought this, I expect MP didn't complain too much though.

 

[Easy 10]

I agree with Stens reservations.

Whilst the theory of tying a clubs spending to its turnover is (on the face of it) a sound one, it does mean that it becomes much more difficult for a club to grow and challenege the already-established elite. Would Man City ever have broken into the top 4 without the huge outside investment from its arab owners ? Would Chelsea have ever challenged and overcome the Man U / Arsenal dominance without the arrival of Abramovich ? Very doubtful. The clubs with the biggest infrastructures would inevitably stay clear at the top, whilst making it virtually impossible for anyone else to ever arrive and catch up with them.

Instead of proposals like this, the authorities should instead look at tightening up their 'fit and proper persons' test and insist on complete transparency when it comes to who owns the football club, to ensure (as far as is possible) that the right kind of people are involved. Its a nonsense to say that outside money from a rich owner is banned and cannot be bestowed on the club HE OWNS - it should be his money to do what he pleases with.

 

[Notters]

Surely this will also give clubs with the ability to generate large amounts of non-football related income (such as us ) a huge advantage.

Is there anything to stop Tony incoporating the football club into his broader business interests then using the total turnover as the figure on which the salary cap is based?

 

[Easy 10]

One things for sure. If we'd been limited to the turnover at Withdean to run the club these last few years, then there is absolutely NO WAY we would be kicking off in the Championship in August. In fact we'd probably be in L2 at best, and I doubt very much we'd have the likes of Gus at the helm either.

This rule completely stumps any ambition and aspiration the smaller clubs and also-rans may have. And another thing - it would stifle the transfer market and lead to MORE problems for clubs, as they wouldn't be able to cash in on their assets. Would Bristol Rovers have £500k in the bank for Hoskins had we not "swooped", or been allowed to ? They'd need a club with a much larger turnover to be interested - and that kind of club would probably be too far up the scale to be interested in the likes of Hoskins.

 

[S'hampton Seagull]

Surely this will also give clubs with the ability to generate large amounts of non-football related income (such as us ) a huge advantage.

Is there anything to stop Tony incoporating the football club into his broader business interests then using the total turnover as the figure on which the salary cap is based?

It will, but clubs that can do that have an advantage anyway. It's just making sure you don't rack up massive playing related debts.

 

[Flavor Flav]

I don't see what the problem is. Blackpool proved that you can make it to the big time without any sort of large financial backing. I think I saw one Sky that the team that one the play-offs cost 500k. This is a necessary step for football and all should be embracing it rather than slagging it off. It will be there to save business' being raped (ie pompey) and clubs from going out of existence.

 

[fork me]

The bigger question, if we are talking about financial common sense is why did the English Football league deem it necessary to hold their conference in Cyprus!!!!!

It's warmer here...

...Der!

 

[KLF]

I agree with Easy 10, the UEFA system, although it seems to be aiming in the right direction (although it was originally led by Platini to help out the top French sides in Europe) will mainly help the Liverpools, Chelseas and Man Utd of this world who now have global appeal and have the potential for much larger turnovers than the Albion could imagine. Chelsea and Man City's turnover on merchandising alone has rocketed through the roof in the last 5 to 10 years thanks to them being able to put themselves in the global spotlight with expensive high profile signings. These laws are coming in in 2014/15 I think, by which time we could be knocking on the Premiership's doors. Its going to be much harder to infiltrate the top than it is now, IMHO - and that's pretty impossible.