FFP taking aim at BCFC

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bfcmik
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FFP taking aim at BCFC

Postby bfcmik » Wed Feb 13, 2019 11:48 pm

Article by Sky Sports:

POINTS DEDUCTION IMMINENT?

Birmingham City unhappy at being singled out by EFL with potential 12-point deduction.

It is understood Birmingham will tell a Disciplinary Commission in the next fortnight that they are being treated like 'guinea pigs' and should not be singled out for harsh treatment, after breaching the EFL's new financial rules.

Neither side is commenting at present, but SSN have been told the EFL is pushing for a 12-point deduction for what they feel have been repeated breaches of their laws.

In the Championship table, a 12-point deduction would immediately move Birmingham from eighth place, five points off the play-offs, to 18th, eight points above the relegation zone.

The punishment will be the first under the League's new Profitability and Sustainability (P&S) rules that were introduced at the start of the 2016/17 season, and so would be seen as a landmark ruling, and one that will set a precedent for any future punishments for other clubs who fall foul of the EFL's rules.

As a result, Birmingham's sanction is likely to be an initial six-points deduction for exceeding the £39m allowable losses over a three-year period, with an additional points deduction for "aggravating factors". This could mean reducing Blues' total by up to six more points.

That would mean the EFL would establish a precedent for the smaller penalty, which would be used as a standard for any similar punishment in the future.

It is thought Birmingham's hierarchy feel they are being made an example of, when other clubs have faced much more lenient settlements, and feel they are already being hamstrung by draconian EFL restrictions. For example, Birmingham remain under a transfer embargo, so they cannot negotiate a new contract for captain Michael Morrison, whose current deal expires in the summer.

SSN has learned that Birmingham's accounts show the club spent more than double its total income on players' wages for the 12 months up to June 2018. It had a total income for that financial year of £18.8m, according to the Price of Football website. The club spent £38m on wages in that same year which was 202 percent of their total income.

Whilst this does not directly breach EFL rules, which state a Championship club cannot lose more than £39m over any three-year period, the overall figures show Birmingham lost around £37.5m in a single year, and displays what the EFL believes has been a blatant disregard for the principles of sustainability.

Birmingham had previously agreed to comply with a business plan, agreed with the EFL, designed to move the club to compliance with the Profitability and Sustainability (P&S) rules.

Whilst the EFL will recommend an appropriate sanction, based on the guidelines previously agreed by the EFL Board, the ultimate decision will be taken by a three-person Disciplinary Commission. That is made up of a professional accountant, one representative acting for the EFL, and another representing Birmingham.

SSN understands the aggravating factors that are being taken into consideration by the EFL include the purchase of Kristian Pedersen in June for more than £2m, when Birmingham were under a "soft embargo" where all major financial issues had to be agreed in advance by the EFL.

Birmingham are also accused with allegedly misleading football authorities over the club's plans to reduce their debts.

# 2
South West Claret.
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Re: FFP taking aim at BCFC

Postby South West Claret. » Wed Feb 13, 2019 11:50 pm

More Murdoch nonsense, close this thread down.

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Spijed
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Re: FFP taking aim at BCFC

Postby Spijed » Wed Feb 13, 2019 11:51 pm

.......

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Chester Perry
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Re: FFP taking aim at BCFC

Postby Chester Perry » Thu Feb 14, 2019 1:02 am

This has been coming for some time - the authorities in this country have been tightening up on FFP (backed by supporter groups and public/political opinion after a raft of clubs just bailing themselves out with administration and leaving local businesses, people and HMRC deeply out of pocket. they are further emboldened by the new leaders within UEFA.

It will be interesting to see if the final judgement is swayed by the apparent refusal to do business in Jan with Che Adams

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bfcmik
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Re: FFP taking aim at BCFC

Postby bfcmik » Thu Feb 14, 2019 1:51 am

Talking to some Blues fans down here this is mainly down to the agreed spending plan being, to all intent and purpose, a complete fabrication. As part of the arrangement, for instance, they say that Birmingham City had promised that they would cut their wage budget by at least 25% and then actually spent more than they had been doing before the deal.

Sorry for the fans in one way. They have no control over the dodgy people who bought the club nor the even more dodgy people it was then sold on to. However, as usual in all these cases, they were happy enough to downplay the question marks about the owners as long as they could see money being spent.

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IanMcL
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Re: FFP taking aim at BCFC

Postby IanMcL » Thu Feb 14, 2019 10:40 am

Should have sold their player to us!

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FactualFrank
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Re: FFP taking aim at BCFC

Postby FactualFrank » Thu Feb 14, 2019 11:14 am

Has anybody got a link to all cases where a club has been deducted points due to FFP?

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Dyched
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Re: FFP taking aim at BCFC

Postby Dyched » Thu Feb 14, 2019 11:18 am

FactualFrank wrote:Has anybody got a link to all cases where a club has been deducted points due to FFP?


Here
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Chester Perry
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Re: FFP taking aim at BCFC

Postby Chester Perry » Thu Feb 14, 2019 11:34 am

Frank this is the first under the Profit and Sustainability rules (won't be the last) and if they learn from FFP will use this to set the tone - it is telling that clubs are definitely cutting the cloth more to the rules across the board - Wolves look like being the last to get away with a large spend - though they were very clever with it.

This season all the crazy clubs (Leeds, Forest, Derby, Villa even Boro) have been more restrictive in their approach financially and if Stoke and West Brom don't achieve promotion this season watch them cut back and/or sell.

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bfcmik
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Re: FFP taking aim at BCFC

Postby bfcmik » Thu Feb 14, 2019 11:59 am

FactualFrank wrote:Has anybody got a link to all cases where a club has been deducted points due to FFP?

I said during all the hooha when it was being discussed on here as FFP was proposed then introduced that it would be a few years before any serious action took place by the authorities. Clubs needed time to realise that this was a long term stricture and so wrist slaps were given at first. Punishments have been getting tougher though and it was only a matter of time before a major penalty was sought.

As has been pointed out earlier, the majority of clubs have now restricted their spending plans so as to comply with FFP. This means that those few who don't even try to comply will become much more obvious and a bigger target. Even with the 3 year rolling targets minor transgressions will still happen, of course, but one would hope they are dealt with in a reasonably minor manner unlike the blatant cheats.

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Conroy92
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Re: FFP taking aim at BCFC

Postby Conroy92 » Thu Feb 14, 2019 3:46 pm

Are there any other clubs who are, say, posting losses exceeding 25 mil over the last two seasons? Surely there are some others coming close to 39 million quid losses over the next year?
Or like a few have said, are most of the rest now complying? Genuine question!

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Chester Perry
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Re: FFP taking aim at BCFC

Postby Chester Perry » Thu Feb 14, 2019 4:09 pm

This article is from the end of last season and n particularly highlights the issues at Villa and how Wolves got away with it - it also has a table from the previous seasons financial results showing the profit/loss for the year - 3 of the 4 with biggest loss won promotion (still not sure how brighton got away with it over consecutive years)

https://www.dailymail.co.uk/sport/footb ... wages.html

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gawthorpe_view
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Re: FFP taking aim at BCFC

Postby gawthorpe_view » Thu Feb 14, 2019 8:08 pm

Does the 12 point deduction mean Blackburn move up one place?

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randomclaret2
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Re: FFP taking aim at BCFC

Postby randomclaret2 » Thu Feb 14, 2019 8:13 pm

They ought to be properly punished by having Owen Coyle imposed as manager

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Re: FFP taking aim at BCFC

Postby gandhisflipflop » Thu Feb 14, 2019 8:21 pm

Because if they had punished Brighton they would have been racist.
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dougcollins
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Re: FFP taking aim at BCFC

Postby dougcollins » Thu Feb 14, 2019 9:30 pm

Chester Perry wrote:This article is from the end of last season and n particularly highlights the issues at Villa and how Wolves got away with it - it also has a table from the previous seasons financial results showing the profit/loss for the year - 3 of the 4 with biggest loss won promotion (still not sure how brighton got away with it over consecutive years)

https://www.dailymail.co.uk/sport/footb ... wages.html



Absolutely, Birmingham looking like an easy target here.


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