The Football League has this afternoon confirmed that its Championship clubs have voted in favour of a breakeven approach modelled upon the Financial Fair Play concept unveiled by UEFA three years ago. This means that clubs recording losses in excess of £6m in the 2014/15 season will risk having a transfer embargo imposed, while clubs promoted to the Premier League risk having fines levied that could run into seven figures, with the proceeds being shared among the more financially prudent.
Just three of the division’s 24 clubs voted against the proposals – it’d be interesting to learn their identities. There will be exceptions to the rules, however. Money spent on youth development, stadium improvement and past player transfers will be excluded. 2011/12 will constitute the first reporting period, though no sanctions will be imposed until 2013/14 on clubs contravening the new regulations.
It’s an interesting experiment aimed at cajoling clubs to impose financial discipline among themselves. A slew of clubs have experienced administration in recent times, and it’s a minor miracle that none have gone bust. Full details on the new rules can be found here.