The SFA could be on a collision course with UEFA over a licence for the club from Ibrox.
While all top flight clubs adhere to UEFA Financial Fair Play regulations to provide some sort of level playing field, Sevco are on course to finish in the top four and be entitled to enter the Qualifying Rounds of the Europa League despite running up a mountain of debt.
According to the last audited accounts, the recently published ‘interims’ for the six months to 31 December 2016 don’t qualify as they are unaudited, the club has two year losses of £11.9m.
UEFA FFP rules allow a club to run up debt of €5m over a three year period. This rule is in place for two main reasons- to prevent clubs being put in danger by spending beyond their means in order to play in UEFA competitions and to provide a level playing field of sorts.
If Hibs fail to lift the Scottish Cup the top four teams in the Premiership will be eligible for UEFA competition but nominating Sevco could open a can of worms.
The fifth placed, FFP compliant, club could make an appeal against being denied a place in the Europa League qualifiers to a club that has ran up debt almost three times the guidelines, or UEFA could face an appeal from a club losing out to Sevco in the qualifying rounds.
Explaining the licence issue to The Sun recently an SFA spokesman claimed: “All Premiership clubs in Scotland undergo a Uefa Licence assessment.
“The interim accounts need to be reviewed by an auditor, but a full audit is not a requirement. FFP is not relevant for a Uefa Licence decision as such.
“Clubs competing in Uefa competition are subject to FFP assessment and if found in breach can face various potential sanctions.”
According to UEFA rules only audited accounts can be considered with the last Ibrox accounts showing accumulated losses of £11.9m in the two years to June 2016.
Should Sevco enter next seasons competition and be found to be in breach of FFP regulations they will be set financial targets by UEFA to comply with for future participation.
With a number of pressing financial issues and the likely departure of Dave King from the board the prospects of Sevco breaking even never mind turning over a profit are almost non-existent.
Unless the SFA make an unpopular decision not to provide a licence it looks like UEFA may be forced to step in and put Sevco into a financial straight jacket to live within their means.
