New financial model braces Championship clubs for fines

CHAMPIONSHIP clubs run the risk of receiving damaging fines or being placed under a transfer embargo under new financial regulations to be imposed from next season.

The financial model, based on Uefa’s financial fair play regulations, was voted for by 21 of the Championship’s 24 clubs and means that any team that records total losses in excess of £4m will be punished, a figure to be reduced to £2m by 2015-16.

Under the new rules, QPR, last season’s Championship winners, would have been fined around £15m for their losses of £25.4m.

Any financial assistance from club owners will also be restricted. From next season they can invest no more than £6m, a figure which will be reduced to £3m by 2014-15.

Upon failing to reach the necessary criteria, a club promoted to the Premier League will be fined but, if remaining in the Championship, a transfer embargo will instead be enforced. Any possible fine would range from one per cent on the first £100,000 to 100 per cent on anything over £10m. Proceeds from any potential fines will in turn be evenly distributed among those in compliance with the regulations.

However, any club relegated to the Championship that had successfully adhered to the Premier League’s regulations would not be subject to sanctions during their first season at the lower level.

“This is a step on the road which will allow over a period of time our clubs to be financially stable,” said Football League chairman Greg Clarke, who yesterday warned that, without action, Football League clubs’ debts could soon reach £2bn. “Success isn’t necessarily being reflected on our clubs’ balance sheets and we have to remedy that situation or face an uncertain future.”