THE FOOTBALL LEAGUE is to implement financial fair play regulations in all three of its divisions after Championship clubs voted in favour of a breakeven approach based on UEFA’s own financial fair play regulations.
From the beginning of next season, the Championship will join League 1 and League 2 clubs in applying rules that exert greater control over club expenditure with each division having the flexibility to determine their own approach.
The decision to adopt the new regulations follows a strategic review by The Football League Board which identified the state of club finances as the organisation’s greatest challenge.
League Chairman, Greg Clarke told The Football League website: “On the pitch we have three exciting, competitive divisions with crowds at their highest levels for 50 years.
“But that success isn’t necessarily being reflected on our clubs’ balance sheets and we have to remedy that situation or face an uncertain future.
“I’d like to commend the Championship clubs for the courageous decision they have taken today. It means that for the first time, all 72 Football League clubs have agreed to take concerted action towards controlling their financial destiny.
“Whilst we cannot promise that these rules will deliver results overnight, they will begin to lay the foundations for a league of financially self-sustaining football clubs.”
The new rules will require Championship clubs to stay within defined limits on losses – £2 million by the 0214/15 season – as well as provide annual accounts to The Football League by December 1 each year.
Failure to stay within the defined limits will lead to the imposition of sanctions with promoted clubs being forced to pay a ‘Fair Play Tax’ if they breach the rules.