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Championship clubs agree new Financial Fair Play rules

The division’s Financial Fair Play rules are moving closer to those used by the Premier League, but what exactly are the changes?

Mike Hewitt
At an EGM held today at Derby's iPro Stadium, Championship clubs agreed on a new set of ‘Profitability and Sustainability’ Regulations that will bring the division’s Financial Fair Play rules closer to those used by the Premier League.

According to the Football League's website the main changes agreed are:
  • From the beginning of the 2016/17 season, Championship clubs will have their financial performance continuously monitored over a three season time-frame
  • During that period they will be able to lose up to £15m without having to be prescriptive over how that loss will be funded
  • They will be permitted to lose more than £15m, but not more than an aggregate of £39m (compared to an equivalent figure of £105m in the Premier League) but will be subject to additional regulation when doing so.
  • A club that moves between the Premier League and Championship will be assessed in accordance with the average allowance that is permitted in the relevant division (for example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61m - consisting of one season at £35m and two at £13m).
The 24 clubs also agreed transitional arrangements for the period until the new regulations are introduced in 2016.  These are:
  • The existing Championship FFP framework will remain in place for the 2014/15 and 2015/16 seasons
  • Any sanctions for accounts relating to the 2013/14 season will continue to take effect as intended (and in accordance with the amounts specified at the time)
  • The maximum deviation under the regulations will remain at £6m for 2014/15 and will increase to £13m in 2015/16, in line with the maximum loss (£39m over 3 seasons) permitted under the new rules
With the existing FFP rules still in place, it means some clubs that competed in the Championship in 2013/2014, including Reading, may not be out of the woods when it comes to being punished for their financial losses last season. Read our article from earlier this week to find out which clubs may be affected.