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Fair Play


kenzzo

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Because we're a few steps ahead of the game, obviously there will be the relegated teams and teams with parachute payments that will get the lions share of the good things about the FFP but in terms of the 'stagnated' clubs we're probably one of the best sponsored clubs in the championship - we're investing well into the youth system which doesn't count against your losses anyway which will allow us to bring players through who we can then sell on to bring in more investment and the plaza being built will also allow us to use that revenue.

We're in a good position for these fair play rules, and we may be able to use them for our advantage. It will no doubt make the premiership and championship gap bigger and the championship is more than likely going to be a more home grown league as foreign players seem to want and be able to demand the same wages in other countries.

The amercians are running the ship well according to these regulations, if we however get promotion, I believe the investment we'll need to stay up may well be a shock to the system.

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Because we're a few steps ahead of the game, obviously there will be the relegated teams and teams with parachute payments that will get the lions share of the good things about the FFP but in terms of the 'stagnated' clubs we're probably one of the best sponsored clubs in the championship - we're investing well into the youth system which doesn't count against your losses anyway which will allow us to bring players through who we can then sell on to bring in more investment and the plaza being built will also allow us to use that revenue.

We're in a good position for these fair play rules, and we may be able to use them for our advantage. It will no doubt make the premiership and championship gap bigger and the championship is more than likely going to be a more home grown league as foreign players seem to want and be able to demand the same wages in other countries.

The amercians are running the ship well according to these regulations, if we however get promotion, I believe the investment we'll need to stay up may well be a shock to the system.

On the contrary we are totally behind the game and the Americans are totally ignorant of how football is played,run and

how promotion and relegation work.The clever clubs are investing heavily now before FFP kicks in,and gain an advantage.

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On the contrary we are totally behind the game and the Americans are totally ignorant of how football is played,run and

how promotion and relegation work.The clever clubs are investing heavily now before FFP kicks in,and gain an advantage.

First year is this season, as you can only cover a 6million pound loss. I do agree, the ideal thing to do was to sign good prospects from the lower league a couple years ago on small wages and big fee's.

Wages will be the killer for most clubs, like Ipswich for example.

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Can anyone tell me how Fair play rules will help Derby

From what i understand, it means that we can't do a rangers. By getting ahead of the game we won't get a points deduction or transfer embargo in a couple of years (although that probably won't matter anyway)

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http://mobile.dcfc.co.uk/runtime/derbycounty/article?articleId=2823299

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 Financial Fair Play regulations in April.

Below, dcfc.co.uk explains what Financial Fair Play means to Derby County fans.

Introduction

Following two years of detailed discussions, The Football League and its clubs have agreed a Financial Fair Play framework that will operate in all three of its divisions from the beginning of the 2012/13 season. It aims to reduce the levels of losses being incurred at some clubs and, over time, establish a league of financially self-sustaining professional football clubs.

The decision to adopt Financial Fair Play regulations follows a strategic review by The Football League Board which identified the state of club finances as the organisation's greatest challenge. During this process, each division has been given the flexibility to determine its own Fair Play regulations, given that clubs of different sizes face differing financial challenges.

In the Championship, clubs have agreed to introduce a breakeven approach based on the UEFA Financial Fair Play Regulations. Whilst in League 1 and League 2, clubs will implement the Salary Cost Management Protocol (SCMP) that has been in use in the latter division since 2004/05. The SCMP broadly limits spending on total player wages to a proportion of each club's turnover.

How will it work?

The Championship

Financial Fair Play in the Championship will see the introduction of a breakeven model based on UEFA Financial Fair Play Regulations. It will require clubs to stay within pre-defined limits on losses and shareholder equity investment that will reduce significantly over the next five seasons.

The new system will require clubs to provide annual accounts to The Football League by December 1 every year, covering the previous season/financial year. Using this information a 'Fair Play Result' will be determined for each club that will equate to the club's profit/loss for the year, excluding investment in specific areas of club infrastructure or losses in certain extraordinary circumstances.

In order to comply with the Financial Fair Play regulations each club is required to demonstrate a Fair Play Result that is either:

a) nil or greater.

or:

'http://www.dcfcfans.co.uk/public/style_emoticons/<#EMO_DIR#>/cool' class='bbc_emoticon' alt='B)' /> A loss of less than the permitted level of acceptable deviation and shareholder equity investment for the season in question.

The permitted level of acceptable deviation and shareholder equity investment will reduce over time from £4m and £8m respectively in 2011/12 to £2m and £3m by 2015/16.

The Football League will establish a Financial Fair Play Panel, led by its Chairman, to consider any challenges by clubs to the determination of the Fair Play Result.

What counts towards the Fair Play Result?

The Fair Play Result is based on the club's profit or loss before tax with the exception of:

* Investment in Youth Development (as defined in the Elite Player Performance Plan)

* The profit affecting element of the purchase, sale and depreciation of fixed assets excluding players (e.g. a club's stadium)

* Investment in a club's Community Scheme

* Promotion related bonus payments

A club is also entitled to apply to the Financial Fair Play Panel to have certain exceptional items excluded from the Financial Fair Play Result in a particular year. Such as (but not limited to):

* Career ending injury costs

* Bad debts from other clubs

* Losses sustained from a major sponsor defaulting

The Timetable For Implementation

As with UEFA's Financial Fair Play regulations, The Football League will phase in its Financial Fair Play framework for Championship clubs. This is outlined below.

Season 2011/12 2012/13 2013/14 2014/15 2015/16 onwards

Acceptable deviation £4 m £4 m £3 m £3 m £2 m

Shareholder equity investment £8 m £6 m £5 m £3 m £3 m

Total Permitted Allowances £12 m £10 m £8 m £6 m £5 m

The first reporting period will be the current season (2011/12) - with the first set of accounts due to be submitted on 1st December 2012.

Sanctions

Failure to stay within the defined limits will lead to the imposition of sanctions. However, there will be no sanctions implemented during the first two seasons (2012/13 and 2013/14) in order to give clubs a sensible period of transition.

From the 2014/15 season, sanctions will be introduced that will differ depending on whether the club ultimately remained in the Championship, was promoted to the Premier League or was relegated to League 1.

i. Sanctions for clubs remaining in the Championship

Clubs that fail to comply with the Financial Fair Play regulations (from December 1st 2014) will be subject to a transfer embargo. This embargo will come in to force ahead of the subsequent transfer window beginning on January 1, 2015.

The embargo will remain in place until the club is able to lodge financial information that demonstrates that it meets the Financial Fair Play regulations (either for the previous reporting period or a future reporting period).

ii. Sanctions for clubs promoted to the Premier League

Clubs promoted to the Premier League will be required to provide Financial Fair Play information for their promotion season by December 1. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.

The Fair Play Tax will be applied at the following thresholds:

(a) 1% of the excess between £1 and £100,000;

('http://www.dcfcfans.co.uk/public/style_emoticons/<#EMO_DIR#>/cool' class='bbc_emoticon' alt='B)' /> 20% of the excess between £100,001 and £500,000;

© 40% of the excess between £500,001 and £1,000,000;

(d) 60% of the excess between £1,000,001 and £5,000,000;

(e) 80% of the excess between £5,000,001 and £10,000,000; and

(f) 100% of the excess over £10,000,000

Any proceeds will be distributed equally amongst clubs that have complied with the Financial Fair Play regulations for the season in question.

The Football League is currently in the process of consulting with the Premier League regarding the implementation of these Financial Fair Play regulations.

iii. Sanctions for clubs relegated to League 1

Clubs relegated to League 1 will not be entitled to any payout derived from the Fair Play Tax and will be required to comply with the FFP rules in operation in that division.

Transition arrangements for clubs relegated from the Premier League

Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations.

League 1 and League 2

League 1 and League 2, clubs have chosen to implement the Salary Cost Management Protocol (SCMP) first used in League 2 in 2004/05, although it will operate at different thresholds in each division.

The SCMP broadly limits spending on total player wages to a proportion of each club's turnover, with clubs providing budgetary information to The League at the beginning of the season that is updated as the campaign progresses.

Any club that is deemed to have breached the permitted spending threshold will be subject to a transfer embargo. Wherever possible, The League will seek to tackle the issue 'at source' by refusing player registrations that take clubs beyond the threshold.

At the beginning of the current season, League 2 clubs reduced the permitted spending threshold to 55% from 60% and this figure will continue to be operated next season.

League 1 clubs are currently operating a 'pilot' of the SCMP with clubs complying with a 75% threshold but with no sanctions being applicable this season. This threshold will reduce to 65% in 2012/13 and 60% in 2013/14 with sanctions (transfer embargoes) being applicable in both seasons.

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First year is this season, as you can only cover a 6million pound loss. I do agree, the ideal thing to do was to sign good prospects from the lower league a couple years ago on small wages and big fee's.

Wages will be the killer for most clubs, like Ipswich for example.

11/12 was the first season,with an allowable loss of £12m.The allowable loss this season will be £10m..

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The idea is that clubs live within their means, and with us having a decent stream of income and a pretty decent academy, we should find it much easier than other clubs,

That's the plan, but the cynic in me says FFP won't ever take off. I don't think British football will sort itself out until the government gets involved.

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I see it like this - regardless of FFP, maximising all our revenue streams should be a default position, being done at all times; and similarly, we should have an academy set up to produce as much talent as we can ourselves.

The fact we have no other cash to burn just means FFP may help out a little.

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