Three EFL clubs hit with FFP embargos

Bolton, Fulham and Nottingham Forest won’t be signing any players during January following Financial Fair Play sanctions by the English Football League. A registration ban has been imposed on all three clubs until June 2016 at the earliest.

In 2012 EFL clubs agreed to a £6m limit to annual losses in a bid to ensure a level playing field. Not only does it ensure some element of competitive fairness it also safeguards clubs against the sort of moonbeams that led to the liquidation of Gretna and Rangers as owners told their flock that they were chasing the dream.

Being ambitious is fine and to be encouraged- being reckless harms everyone in the game with the EFL Fair Play regulations providing some sort of restraint on the way clubs like Portsmouth and Leeds United crashed down to earth when reality kicked in.

Announcing the sanctions yesterday the EFL stated: “An initial analysis of Financial Fair Play submissions from clubs that played in the Sky Bet Championship last season has resulted in three clubs being subject to sanctions, under rules agreed with league clubs in April 2012.

“All three exceeded the maximum permitted deviation of £6m – consisting of a maximum adjusted loss of £3m plus a further maximum of £3m of shareholder investment.

“The Football League is currently in discussions with a number of other clubs over their FFP submissions and will confirm any further FFP embargoes, if any, in due course.

“Bolton Wanderers did not submit an FFP return owing to the club’s ongoing financial difficulties. As a result, the club will not be permitted to sign any players until it has complied with its obligations under the Championship’s FFP regulations.”

Signing players won’t be much of an issue for Bolton with the club facing a player exodus if the December wages aren’t met.

Facing upto relegation, despite the generous parachute payments from the EPL, has created the problem at Fulham with relegated clubs being given extra leeway as they adjust to their new found status.

Responding to the embargo Fulham stated: “The embargo arises as the club made an adjusted loss greater than the £6m limit allowed by the Football League in the year following relegation. The Football League has since recognised this limit is low, especially for clubs recently relegated with Premier League overheads in place, and the limit has now increased to £13m per annum.

“Unfortunately Fulham’s embargo falls in the final year of the previous limit, but the club does not anticipate being in breach in future years.’’

Despite the loss of Airdrie, Gretna and Rangers in recent seasons no FPP regulations are in place within Scottish football.

Last month Sevco’s accounts came with a £2.5m going concern warning, with losses of around £8m in each of their three seasons trading it seems only a matter of time before the soft loans dry up and reality arrives.