Bristol City Colin Sexstone chairman backs spending curb
BRISTOL City chairman Colin Sexstone believes new regulations to curb spending will restore sanity to Championship football and prevent clubs from going out of business.
Clubs in the second tier making losses of more than £6 million will be fined millions of pounds or put under a transfer embargo from the 2014-15 season.
The changes will also prevent owners from funding their clubs through loans.
Owners will be allowed to invest £6m next season, £5m the year after, then £3m in the 2014-15 season. From 2015-16, clubs will be allowed to make a £2m operating loss, as well as accept a £3m investment from an owner – allowing for a £5m overall loss.
Business Cards From Only £10.95 Delivered www.myprint-247.co.ukView details
Our heavyweight cards have FREE UV silk coating, FREE next day delivery & VAT included. Choose from 1000's of pre-designed templates or upload your own artwork. Orders dispatched within 24hrs.
Terms: Visit our site for more products: Business Cards, Compliment Slips, Letterheads, Leaflets, Postcards, Posters & much more. All items are free next day delivery. www.myprint-247.co.uk
Contact: 01858 468192
Valid until: Sunday, May 26 2013
Sexstone, pictured, has welcomed the changes and is confident City, who have announced losses of almost £30m over the last three years, will be able to adhere to the regulations.
He said: "I think they have pitched the figures about right and this has to be seen as a commonsense move.
"We had to come up with a figure that everyone could comply with, but there will be opportunities to tighten it as we go. We have to start somewhere and this is a good start.
"Even if these regulations had not been imposed, we would have had to make cutbacks. We have already made plans not to lose as much money again.
"Basically, we have a year's grace in which to get our house in order before sanctions begin to bite."
As Championship clubs strive for a financially-sustainable business model, so player wages will have to come down.
Sexstone, pictured, added: "Cutting wages is the main thrust and we are already seeing a difference.
"Of course, players will still be very well paid by normal standards, but they cannot expect to earn some of the figures we have seen in recent years. There has to be a realisation that clubs cannot afford to spend silly money and players will have to lower their demands accordingly."
Clubs promoted to the Premier League that fail to adhere to the amendments must pay a fair-play tax on their losses, ranging from one percent on the first £100,000 to 100 percent on anything over £10m.
Non-promoted clubs will not be punished financially for failing to adhere to the new rules, but instead placed under a transfer embargo.
Youth investment and accounting charges from past spending on players and stadium-building will not be included.
Clubs relegated to the Championship will not be subject to sanctions in their first season as long as they have met their financial obligations under Premier League regulations.
They would, however, have to pay the fair-play tax if they did not comply with the new regulations and got promoted.
The new regulations are based on Uefa's break-even model of Financial Fair Play and come after the Football League's research revealed the 72 clubs of the Championship, League One and League Two are on course to accumulate £2 billion of debt.
Peterborough United goalkeeper Paul Jones has rejected the club's offer of a new contract and could leave London Road this summer.
Jones, whose current deal expires at the end of the season, has spent much of the campaign as the first choice goalkeeper at Posh.
Lee Bowyer will not be offered a new contract by Ipswich Town and will be released in the summer.
The 35-year-old midfielder joined the club 12 months ago on a free transfer following Birmingham's relegation from the Premier League.