Championship clubs to introduce financial fair play system

Championship clubs are set to introduce their own financial fair play system where teams can only spend what they earn.

The Football League chairman Greg Clarke has revealed that the Championship clubs have voted in principle to mirror the Uefa system that will affect clubs in European competition from 2014.



The system will be proposed at the Football League's AGM in Cyprus tomorrow, where it will also be put forward that League One clubs move towards the introduction of the salary cap currently in force in League Two, where teams can spend a maximum of 60% of their turnover on wages.



Clarke told Press Association Sport: "The Championship clubs voted to look at financial fair play and in principle decided that was the road they wanted to go down.



"I think it's essential, and the energy to solve this is coming from the clubs themselves.



"It's a perfect storm in that a lot of things have come together to make this happen, including of course the level of debt in the game - £700million in the Football League, most of that in the Championship - and big losses being racked up by the clubs."



Clarke said if the proposal was passed the next six months would be spent on developing a system and ensuring it was fair and transparent.



He admitted that there had been some opposition to the move but a strong majority had been in favour.



It is understood that Leeds chairman Ken Bates is among those backing the system.



"These things are never unanimous and a couple of the clubs would rather not have constraints on how mach money they can spend," added Clarke.



"I would hope this could lead to a return to the days when local communities could own the clubs rather than rely on offshore benefactors.



"There is also a proposal for League One clubs to shadow the League Two system in the coming season with a view to their adopting it the season afterwards."



The proposed spending constraints also reflect concern over income - the League's new £195million domestic TV deal is a 26% drop on the previous one.



Clarke added: "Football finances are difficult and the UK television deal is less than the last one, and there are no signs that the economy is going to recover quickly."



One area where income has gone up is in parachute payments to clubs relegated from the Premier League - now they can earn up to a maximum of £48million over four years.



There have been fears that could have a distorting effect and lead to yo-yo clubs but Clarke said there had been little evidence of that so far.



He said: "Largely the parachute payments are absorbed by the club paying their debts and players. Last year three clubs came down and did not make the play-offs.



"This year we have two financially-distressed clubs relegated in West Ham and Birmingham, while Blackpool have run quite a tight ship, and it will be interesting to see whether the financial distress overcomes the parachute payments in terms of giving them a competitive advantage."



The Football League have often taken the lead in bring in new systems - their track record includes: the fit and proper person's test for directors; clubs disclosing agents' payments; an independent chairman and independent directors; the spending constraints operating in League Two.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Career Services

Day In a Page

Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
America: Land of the free, home of the political dynasty

America: Land of the free, home of the political dynasty

These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
A graphic history of US civil rights – in comic book form

A graphic history of US civil rights – in comic book form

A veteran of the Fifties campaigns is inspiring a new generation of activists
Winston Churchill: the enigma of a British hero

Winston Churchill: the enigma of a British hero

A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
Growing mussels: Precious freshwater shellfish are thriving in a unique green project

Growing mussels

Precious freshwater shellfish are thriving in a unique green project
Diana Krall: The jazz singer on being friends with Elton John, outer space and skiing in Dubai

Diana Krall interview

The jazz singer on being friends with Elton John, outer space and skiing in Dubai
Pinstriped for action: A glimpse of what the very rich man will be wearing this winter

Pinstriped for action

A glimpse of what the very rich man will be wearing this winter
Russell T Davies & Ben Cook: 'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'

Russell T Davies & Ben Cook: How we met

'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'
Bill Granger recipes: Our chef serves up his favourite Japanese dishes

Bill Granger's Japanese recipes

Stock up on mirin, soy and miso and you have the makings of everyday Japanese cuisine
Michael Calvin: How we need more Eric Cantonas to knock some sense into us

Michael Calvin's Last Word

How we need more Eric Cantonas to knock some sense into us