At an EGM, Championship clubs agreed a new set of 'profitability and sustainability' regulations that will bring the division's approach to Financial Fair Play into line with the Premier League.
From the beginning of the 2016/17 season, Championship clubs will have their financial performance continuously monitored over a three season timeframe and will be permitted to lose up to £15m during that period without having to be prescriptive over how that loss will be funded.
In addition, they will be permitted to lose more than £15m, but not more than an aggregate of £39m (compared to an equivalent figure of £105m in the Premier League) but will be subject to additional regulation when doing so. This will include providing evidence of Secure Owner Funding and Future Financial Information for the two seasons ahead.
A club that moves between the Premier League and Championship will be assessed in accordance with the average allowance that is permitted in the relevant division (for example, a club that had played two seasons in the Championship and one in the Premier League would have a maximum permitted loss of £61m - consisting of one season at £35m and two at £13m).
Clubs also agreed transitional arrangements for the period leading up the introduction of the new regulations in 2016. These can be summarised as follows:
- The existing Championship FFP framework will remain in place for the 2014/15 and 2015/16 seasons.
- Any sanctions for accounts relating to the 2013/14 season will continue to take effect as intended (and in accordance with the amounts specified at the time).
- The maximum deviation under the regulations will remain at £6m for 2014/15 and will increase to £13m in 2015/16, in line with the maximum loss (£39m over 3 seasons) permitted under the new rules.
Following the Championship’s decision, the Board of the Football League has been given a mandate by its clubs to complete a new financial solidarity arrangement with the Premier League in accordance with that currently under discussion between the two leagues.