Something of a doomsday scenario has come over the Football League as clubs are struggling with the rules that limit the amount of turnover that can be spent on the wages of players. Championship clubs have also recently just voted to say that they would prefer to have the same financial rules that are seen in Leagues one and two.
The sort of rules that would be implemented in the championship would mean that it is less difficult for the clubs to fall into significant amounts of debt, and risk collapsing.
The chairman of the football league is Greg Clarke and he has commented, “These new regulations are going to create more financially sustainable football clubs. They are going to lay a foundation for creating a more responsible sport where clubs are less able to rack up large debts very quickly.”
The chairman has also said that the rules are going to be brought into effect next season and any clubs that are not being in compliance with the rules are going to face transfer embargoes as well as significant fines. He has also said however that these fines will not start being handed out until the season after that in order to give clubs an opportunity to get used to the new rules and restrictions.
A lawyer who specialises in sports at the law firm Field Fisher Waterhouse, Daniel Geey has commented, “These sort of regulations are going to help ensure the football clubs are able to break even and that they do not take on a large amount of debt.
Fortunately, there is some leeway and it means that these rules will not be too restrictive on clubs, just enough to protect them from themselves. It is a good idea for them to have implemented the grace period before they started implanting finds in the 2014 season.”
Sanctions are also going to be put onto clubs that are not able to break even. Over the next five years these are going to be gradually increased so that clubs are able to improve their performance and not take unnecessary risks.