Championship clubs have this morning agreed to change the Financial Fair Play rules for the second tier of English football.
After a vote at an EGM in Derby, the clubs decided to amend the rules of Financial Fair Play, which will be now known as the Profitability and Sustainability regulations.
The Football League have said that they’ve bought the regulations in line with the Premier League, and made this statement: “From the beginning of the 2016/17 season, Championship clubs will have their financial performance continuously monitored over a three-season timeframe and will be permitted to lose up to £15 million during that period without having to be prescriptive over how that loss will be funded.
“In addition, they will be permitted to lose more than £15 million, but not more than an aggregate of £39 million (compared to an equivalent figure of £105 million in the Premier League) but will be subject to additional regulation when doing so.
“This will include providing evidence of Secure Owner Funding and Future Financial Information for the two seasons ahead.
“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 £61 million – consisting of one season at £35 million and two at £13 million).”
The statement continues: “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 £6 million for 2014/15 and will increase to £13 million in 2015/16, in line with the maximum loss (£39 million over three seasons) permitted under the new rules.”
The statement adds: “Following the Championship’s decision, the board of the Football League has been given a mandate by its clubs to complete a new financial solidarity arrangement with the Premier League in accordance with that currently under discussion between the two leagues.”