FFP to be Resolved by Commission

  • Please bear with us on the new site integration and fixing any known bugs over the coming days. If you can not log in please try resetting your password and check your spam box. If you have tried these steps and are still struggling email [email protected] with your username/registered email address
  • Log in now to remove adverts - no adverts at all to registered members!
QPR999

QPR999

Well-Known Member
Staff member
Mar 26, 2011
22,381
18,633
113
Surrey
QPR’s FFP dispute expected to be resolved by commission
By David McIntyre 05/05/2016

QPR now expect their Financial Fair Play dispute to be resolved by a commission.

Rangers are challenging the legality of the Football League’s Championship FFP rules, under which the club face a massive fine for losses recorded during the 2013-2014 financial year.

Promotion to the Premier League was achieved that season, but relegation the following year left QPR open to a potential fine of more than £50m.

Despite several subsequent reports of an imminent deal between the two parties, legal arguments have failed to resolve the issue.

And with no tangible progress having been made in several months, Rangers now believe the matter will be referred to a commission that will consider evidence from both sides.

With League rules having stipulated that clubs making a loss of more than £8m would be subject to a fine, QPR reported a loss of £9.8m for the year in question.

But that was only after the club’s owners wrote off £60m in directors’ loans in an attempt to boost their case against a heavy fine.

QPR have also argued that they should not be punished according to FFP rules introduced after the club committed to player contracts while in the Premier League between 2011 and 2013, as they could not then be reasonably expected to comply with the new regulations once relegated to the Championship.

http://www.westlondonsport.com/qpr/qpr-ffp-dispute-latest?
 
Thanks, Nines. I haven't got a clue why this did not go to arbitration as originally intended, or what a referral to a commission achieves beyond this.

I'd really like this put to bed because I suspect the fact that it hangs over the club greatly inhibits normal week by week, month by month running of the place
 
sb_73 said:
What commission? Commissioned by whom?
Click to expand...

I believe that the Football League makes provision for something called an Independent Regulatory Commission and such a body decided the debacle over the Faurlin purchase some years ago.

If the FL are dragging their feet over the current arbitration, the commission route may be the best way for QPR to bring the dispute to a conclusion
 
Last edited:
GoldhawkRd said:
I believe that the Football League makes provision for something called an Indepedent Regulatory Commission and such a body decided the debacle over the Faurlin purchase some years ago.

If the FL are dragging their feet over the current arbitration, the commission route may be the best way for QPR to bring the dispute to a conclusion
Click to expand...
Cheers. Bit of a fiasco, again.
 
I think the Football League are persevering with this as a face-saving exercise, hopefully the commission will see how banal the penalty is...
 
Difficult to judge with NDAs in place on both sides.
 
sku said:
Difficult to judge with NDAs in place on both sides.
Click to expand...

What are NDA's sku?

I think the last paragraph in that article shows what a nonsense FFP is all about.

''QPR have also argued that they should not be punished according to FFP rules introduced after the club committed to player contracts while in the Premier League between 2011 and 2013, as they could not then be reasonably expected to comply with the new regulations once relegated to the Championship.''

Maybe Fulham and whoever else was in the same situation will have their penalties revoked if we are successful in our battle.
 
QPR999 said:
What are NDA's sku?

I think the last paragraph in that article shows what a nonsense FFP is all about.

''QPR have also argued that they should not be punished according to FFP rules introduced after the club committed to player contracts while in the Premier League between 2011 and 2013, as they could not then be reasonably expected to comply with the new regulations once relegated to the Championship.''

Maybe Fulham and whoever else was in the same situation will have their penalties revoked if we are successful in our battle.
Click to expand...
Non Disclosure Agreements - neither side will discuss the details in public.
 
On the issue of the writing off of £60 million loans, that happens all the time in business, and is allowed under UK GAAP. I'd be very surprised if the commission didn't take that into account, and therefore throw the FL claim out.
 
The FL need to make an example of someone to show that FFP can actually work. Little old QPR are ideal targets as we don't have a huge fan base to make a fuss and our spending in recent years has alienated a lot of neutrals. I have no doubt that should Newcastle or Villa have got here before us a back room deal would have long since been done. At the end of the day FFP is a restrictive business practice that will eventually be outlawed when it gets to proper courts. It's just a shame that TF decided to back the idea before realising that it meant that the football club he'd bought would find it ludicrously difficult to break into the big time.with such limiters in place.
 
Chaz said:
On the issue of the writing off of £60 million loans, that happens all the time in business, and is allowed under UK GAAP. I'd be very surprised if the commission didn't take that into account, and therefore throw the FL claim out.
Click to expand...

I agree with this. If it is allowable under UK Tax & Financial laws, it has to be acceptable for FFP.

However, I would have to allow an arguement from rthe FL regarding our stance of that we had to honour Premier League contracts & this was the reason for our loss.

This would be fine apart from the players that we signed for that season & the wages/agents fees that were incurred.

IMO, these figures would have exceeded (probably greatly) our loss of £9.5 million! I can't remember all of these signings, but they would have included:-

Simpson, Dunne, BAE, O'Neill, Niko, Phillips, Austin, Henry etc. I would estimate that as over £10 million in wages (average of £25k per week). Then agent fees, signing on fees & transfer fees have to be factored in.

We really didn't help ourselves!
 
You must log in or register to reply here.
Top Bottom
Back