Clubs agree to financial framework (1 Viewer)

[MatthewWallis]

AT their Summer Conference, Football League clubs have made significant progress towards achieving greater financial sustainability by agreeing to adopt UEFA's Financial Fair Play framework.

Clubs in all three divisions voted in favour of developing rigourous new measures aimed at delivering a 'break even' financial model at clubs.

In giving 'in principle' support to the introduction of the UEFA model, Championship clubs agreed to work towards the introduction of new regulations, to be developed and approved, by the beginning of the 2012/13 season.

In addition to supporting the objectives of Financial Fair Play from 2011/12, League 1 clubs have also agreed to introduce the Salary Cost Management Protocol (SCMP).The SCMP limits spending on player wages to a proportion of total turnover and acts as a tool to deliver Financial Fair Play.

Clubs in League 2 also support UEFA's Financial Fair Play ethos and currently operate the SCMP successfully at a 60% threshold, which will reduce to 55% next season.

Football League Chairman Greg Clarke said: "This is a very important step forward for professional football as it will help our clubs exert greater control over their finances.Much more work needs to be done, but I am hugely encouraged and impressed by the energy and focus of our clubs on this issue.

"They have been the catalyst for change and have shown a real desire to self-regulate in this area.I congratulate them on taking this bold step."

The decision of clubs to adopt the Financial Fair Play framework followed a day of debate about The League's financial future and presentations from Clarke and Andrea Traverso, UEFA's Head of Club Licensing and Financial Fair Play.

I dont like the idea of this.

 

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[Sky Blue Sheepy]

Why on Earth not? I'm more than happy with the idea of our club being financially stable - which lets face it, we're not at present. As for any arguments of it limiting success, tell that to Blackpool and Burnley, who didn't need to go OTT to get promoted and, quite frankly have come back down better off...

 

[Marty]

On the whole its a good idea, but it's not going to stop the rich owners ploughing money into the club. The rich will continue to get the benefits while clubs like us will continue to stuggle

 

[oldskyblue58]

The reason it is going to create havoc with CCFC isnt that it is a bad idea....... fiscal prudence and a stable finance base is essential........ but CCFC runs wages at 110% of turnover and that cannot be sustained (£10m total wage costs). The league are looking at limits of something like 70% of turnover (= £6.5m total wage costs). Think what that might do for the players we could attract.

On average the premiership runs at 68% of turnover I think (per SSN TV report yesterday)

Dont know the exact details but it isnt looking good even if it is the right idea