EFL Financial Fair Play rules explained - and the punishments clubs like Bristol City could receive Bristol City have plenty of work to do in order to ensure Financial Fair Play compliance, but what are the rules? Bristol City find themselves in a nervy position over the EFL’s Financial Fair Play rules. The deadline for clubs up and down the EFL and Premier League to submit their accounts and reports to league officials is coming up within the next two weeks. And we already know City are in a very tricky position when it comes to next season’s assessment. Following losses of £38.4million in 2021, losses impacted by the pandemic, the Robins must find the necessary money to reach compliance for the period encompassing that year. But as Steve Lansdown and the City chiefs work away at the numbers, we have taken a look at the rules in detail to get you up to speed with the process. Take a look below. What are the rules? On or before March 1 of each year, every EFL club has to submit copies of its accounts along with reports from a director and an auditor. Among the report must be its estimated profit and loss along with the account balance. A profit and sustainability calculation is then issued and each club’s losses must fall within the Lower Less Threshold, set by the EFL. The assigned executive will then work out whether the club will be able to meet the obligations set out in the profit and sustainability rules. Crucially, though, while assessments are done every season, they are calculated based on the previous three years. What are the thresholds? The lower threshold for EFL clubs is £5million, while the upper threshold is £13million. The lower threshold for the Premier League is the same, but the upper amount is set at £35million. These figures are averaged per season and the calculation is made each March based on the previous three years. To explain these limits further, in a nutshell, clubs can lose up to £13million per season, but that includes an injection of cash from the owner. Club’s can only lose up to £5million per season without any owner funding. What happens if the losses are greater than the threshold? If a club loses or is set to lose more than the threshold during the three-season period, they must provide future financial information by March 31, proving the club can meet its obligations. The club must also provide a calculation of estimated aggregated adjusted earnings before tax. If clubs in breach cannot provide the future funding within the timeline, the assigned executive has the powers to punish them. And the EFL aims to dish out any punishments by the end of each season. Potential punishments Under the most recent rules, the EFL are granted wide powers as far as punishments go. A transfer embargo can be enforced, or a significant fine, but there are also more severe punishments available. The EFL executive can also deduct points, or even move a team out of an automatic promotion position into the play-offs. https://www.bristolworld.com/sport/...clubs-like-bristol-city-could-receive-3574967
We seem to be on a tightrope over this one, we've got to sell some more of the family silver to reduce our debt, we are still stuffed up with deadwood contracts of previous management regimes, it's no wonder Nige said our ways of trading was bonkers, what a state of play we are in. Nice to see Junior Lansdown back on the scene, I just wish he would engage his brain before speaking to the press.
Rather than selling off the crown jewels is it possible that we could raise the cash by selling off the dross? What do you mean about having Junior Lansdown back on the scene because I was unaware that he had gone missing? Wouldn't it be prudent for the football police to loosen the reins this season as a buffer against the financial losses incurred during the covid era because whether they will admit or not the knock on affects of the last 2 years could see the grass roots of the game vanish for ever. The last thing any club needs after 2 years of financial hell is to be deducted points to further their hamper their progress back from purgatory and if that's what they want then they clearly do not have the best interests of the game at heart. Are there ever annual meeting where matters like this are discussed where a consensus of practical solutions could be drawn up and implemented? There will always be clubs who use the Donald Trump accounting programme that will get away with things beyond belief but we live in a different world to the mega wealthy and as such suffer the consequences. I am comfortable with supporting a backwater team that flies under the glamorous radar but we deserve to get the same treatment but sometimes I question the logic of some of the actions against clubs like ours and others.
might be a loophole ..clubs could just say f*** it nowt will happen.. better to get in all accounts and see what the result is! the unfairness is smaller clubs with smaller gates have lower turnovers so unlikely to run up debt of £39m over 3 I think Peterbro has turn over of £12m so would need to spend £25-26 pa to fall foul! In an effort to strive for better levelling like get a team worthy of premiership, a club has to build toward it...= better players.. = higher wages = [ Brentford for eg ] No point a team with small gates small turn over average team sneaking into top 6 winning at Wemglee then lose the first 2 games in the prem and end up getting relegated with a years PP
We will not be alone. I don't think many clubs have yet published their figures. Once clubs do, I think the EFL will see the size of the issue and have to grant some kind of waiver on the figures for all of last season. Or, the potential is that possibly a dozen or more clubs will get points deductions, which would make the EFL look a laughing stock.
