If a disciplinary commission backs up the EFL's view that Birmingham City should be docked 15 points, it is likely to have implications for Aston Villa who are also likely to be charged with breaching the spending cap. The EFL thinks that sanctions have not been tough enough to deter clubs breaking the rules, although the disciplinary commission may not share that view.
Villa have made an aggregate loss of £37.1m during their two seasons in the Championship, giving them very little room for manoeuvre to comply with rules that permit losses of £39m over a three year period. Their campaign has hardly been a success so far, so the escape route of promotion to the Premier League does not seem to be within their grasp, and their parachute payments this year have dropped from £33m to £17m.
If they lose £17m this season, then they could expect to be deducted 12 points next season.
The broader issue here is that Birmingham football has been punching under its weight for some time. The high profile of the two Manchester clubs helps to make the city more fashionable and attract investment. HST2 may not be the answer some people think it is.
What can be done about is another matter, as the answer is really in the hands of the clubs themselves. I met the new West Midlands mayor, Andy Street, during his election campaign and was impressed by him, but it is hardly within his remit.
£371m loss! I thought that's incredible. Elsewhere it is reported as £37.1m. That decimal point is quite important!
ReplyDeleteThanks for pointing out this mistake. I have now inserted the decimal point.
ReplyDeleteAre you seriously trying to imply that football is an inducement for where people relocate to? If not why bring up HS2 and Andy Street?
ReplyDeleteAs for FFP can anyone explain how fining a club or taking away so many points that a team can be relegated actually makes them more solvent? In addition what other industry would deny an owner the right to invest in his own company? I think a visit to the courts is the answer, can't see the law allowing such a stupid rule to be legal.
On the second point, I am not necessarily defending FFP. Indeed, I think that it is potentially open to legal challenge because it may not be compatible with competition law. Of course, football always regards itself as different to other industries, but that does not mean that its governing authorities are beyond legal challenge. If owners convert losses or loans into shares, they are beyond the scope of FFP. I think that what concerns the EFL is that its rules have been evaded. I am certainly not in favour of big points deductions which penalise fans rather than misbehaving owners.
ReplyDeleteOn the first point, I would need to dig around to find some of the studies that have been done on this. However, the general point is that having a football club with a global following raises the profile of a city generally. The link between this and specific investments may be hard to demonstrate. Certainly Manchester benefits from football tourism.