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Vital Champions League
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Could you pin this for future reference please?
It is not a comprehensive account of the rules but it covers most of the salient points.
The Financial Fair Play rule for Championship clubs from the 2016 17 season are as follows:
New FFP rules were introduced for Championship clubs that took effect from the beginning of the 2016 17 season.
The rules named "Profitability and Sustainability" mean that for the first time clubs will be assessed over three seasons instead of one.
This change brings Championship clubs in line with the Premier League - the rules are fully aligned.
The harmonisation of the rules was designed to avert any repeat of the stand off between the EFL and QPR - it means that there is now no hiding place for clubs that breach the rules and obtain promotion in the process.
The key changes are as follows:
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). Transfer embargoes are also available (with the earliest one potentially applying during the Summer Transfer window.
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.
The following table illustrates how the maximum permitted loss for Championship clubs is dependent on the league they were in during the two previous seasons.
Limits for clubs in Championship in 2016/17 season
*Maximum loss is assessed in March/April based on submission relating to two previous seasons plus projection for the current year.
It is important to appreciate that the Premier League will continue to carry out their FFP test ('Profit and Sustainability') for clubs in the top flight – these will work in the same way and take place at the same time as the Championship assessment is carried out, but with the Premier League carrying out their tests.
As with the Championship, the maximum overspend will be determined by the club’s division during the three rolling seasons.
The following table illustrates how the maximum permitted loss for Premier League clubs is dependent on the league they were in during the two previous seasons.
Limits for clubs in Premier League in 2016/17 season
This answers the questions regarding Newcastle's losses; they will not be punished.
Could you pin this for future reference please?
It is not a comprehensive account of the rules but it covers most of the salient points.
The Financial Fair Play rule for Championship clubs from the 2016 17 season are as follows:
New FFP rules were introduced for Championship clubs that took effect from the beginning of the 2016 17 season.
The rules named "Profitability and Sustainability" mean that for the first time clubs will be assessed over three seasons instead of one.
This change brings Championship clubs in line with the Premier League - the rules are fully aligned.
The harmonisation of the rules was designed to avert any repeat of the stand off between the EFL and QPR - it means that there is now no hiding place for clubs that breach the rules and obtain promotion in the process.
The key changes are as follows:
- The assessment is carried out in March (rather than December)
- The maximum loss limit is now £13m per Championship season (or £5m a season of the owner does not inject equity to cover losses).
- 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.
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). Transfer embargoes are also available (with the earliest one potentially applying during the Summer Transfer window.
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.
The following table illustrates how the maximum permitted loss for Championship clubs is dependent on the league they were in during the two previous seasons.
Limits for clubs in Championship in 2016/17 season
*Maximum loss is assessed in March/April based on submission relating to two previous seasons plus projection for the current year.
It is important to appreciate that the Premier League will continue to carry out their FFP test ('Profit and Sustainability') for clubs in the top flight – these will work in the same way and take place at the same time as the Championship assessment is carried out, but with the Premier League carrying out their tests.
As with the Championship, the maximum overspend will be determined by the club’s division during the three rolling seasons.
The following table illustrates how the maximum permitted loss for Premier League clubs is dependent on the league they were in during the two previous seasons.
Limits for clubs in Premier League in 2016/17 season
This answers the questions regarding Newcastle's losses; they will not be punished.
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