FFP/SCMP for League one clubs

[djp]

I know FFP conversations have appeared on various threads but does anyone fully understand what the situation is for League One clubs?

The things I understand are that 75% of turnover can be spent on wages for newly relegated Championship clubs, then 60% thereafter. But what about FFP aswell? For Championship clubs the allowed loss is £39 million over 3 seasons, but what if a clubs spends just 1 year in League One before being promoted back to Championship, what is the total allowed loss over the rolling 3 year period, is it still £39 million. I remember something a few years ago about £13 million allowed in Championship season, £5 million in League One and £3 million in League Two, but cannot work out if that has been scrapped and all League clubs are allowed to lose £39 million over a 3 year rolling period including League One and Two so long as they stay within the SCMP protocols. It certainly looks that way on EFL website, it says Annual Upper Loss Threshold is £35 million for Premier League and £13 million for The League.

If the above is the case, then are the club actually trying to get relegated to avoid FFP fines/points deduction? Surely it would take some doing to lose more then £13 million per year in League One if only allowed to spend 75% of turnover on wages.

[SheepRanger]

Surely if you're only allowed to spend 75% / 60% of turnover on wages then you wont mske an FFP loss?

The only other things you could spend is on stadium, training ground and academy etc which are exempt from FFP calculations any way.

If we has turnover of £10m we could spend £7.5m on first team squad wages of those over 23 yrs and build a new £250m stadium and still be within the rules.

[djp]

Surely if you're only allowed to spend 75% / 60% of turnover on wages then you wont mske an FFP loss?

The only other things you could spend is on stadium, training ground and academy etc which are exempt from FFP calculations any way.

If we has turnover of £10m we could spend £7.5m on first team squad wages of those over 23 yrs and build a new £250m stadium and still be within the rules.

Exactly that, or are we missing something here? In which case why would anyone choose to be the owner of a football club in The Championship?

And why have the EFL only put the salary cap into League One and Two? Or are they piloting in those two divisions to eventually roll out to The Championship?

[SheepRanger]

Exactly that, or are we missing something here? In which case why would anyone choose to be the owner of a football club in The Championship?

And why have the EFL only put the salary cap into League One and Two? Or are they piloting in those two divisions to eventually roll out to The Championship?

I guess because you can lose (invest) up to a loss of £39m over three years to gain premership status and have a turover boost of circa £150m a season.

[djp]

I guess because you can lose (invest) up to a loss of £39m over three years to gain premership status and have a turover boost of circa £150m a season.

But all that risk for 3 positions, pointless certain clubs being in The Championship as they cannot compete with the relegated club from Premier. Which brings me onto parachute payments, the rules should be changed so that parachute payments can only be used to pay for wages of previously signed players in Premier league, not for any new spending on transfer fees and wages (plus contract renewals) in the Championship. It won't totally solve it but it would certainly make it a little fairer as most relegated players would want out anyway.

[SheepRanger]

But all that risk for 3 positions, pointless certain clubs being in The Championship as they cannot compete with the relegated club from Premier. Which brings me onto parachute payments, the rules should be changed so that parachute payments can only be used to pay for wages of previously signed players in Premier league, not for any new spending on transfer fees and wages (plus contract renewals) in the Championship. It won't totally solve it but it would certainly make it a little fairer as most relegated players would want out anyway.

They dont want it to be fair.

If West Ham, Leeds or Everton dropped out of the prem they would like them back asap because they are bigger teams that Luton / Millwall and it would be deemed a better premiership when theyre selling overseas TV rights.

Small clubs with no global reach in the premership is a pain in the 'arris for the money men.

[djp]

They dont want it to be fair.

If West Ham, Leeds or Everton dropped out of the prem they would like them back asap because they are bigger teams that Luton / Millwall and it would be deemed a better premiership when theyre selling overseas TV rights.

Small clubs with no global reach in the premership is a pain in the 'arris for the money men.

You are so right. As soon as the European Superleague was mentioned a year or so ago I was gutted it didn't move forward, getting rid of the top 5/6 teams from the Premier league would make the English leagues competitive again, the Sky money would go with it as would the excessive wages. The remaining clubs would have a chance to compete in the top division again in England.

[ConorQPR2000]

I know FFP conversations have appeared on various threads but does anyone fully understand what the situation is for League One clubs?

The things I understand are that 75% of turnover can be spent on wages for newly relegated Championship clubs, then 60% thereafter. But what about FFP aswell? For Championship clubs the allowed loss is £39 million over 3 seasons, but what if a clubs spends just 1 year in League One before being promoted back to Championship, what is the total allowed loss over the rolling 3 year period, is it still £39 million. I remember something a few years ago about £13 million allowed in Championship season, £5 million in League One and £3 million in League Two, but cannot work out if that has been scrapped and all League clubs are allowed to lose £39 million over a 3 year rolling period including League One and Two so long as they stay within the SCMP protocols. It certainly looks that way on EFL website, it says Annual Upper Loss Threshold is £35 million for Premier League and £13 million for The League.

If the above is the case, then are the club actually trying to get relegated to avoid FFP fines/points deduction? Surely it would take some doing to lose more then £13 million per year in League One if only allowed to spend 75% of turnover on wages.

There is no other rules other than SCMP in League 1 and owner funding is included in the turnover figure, so there is no limit to what an owner can put into the club.

There is no limit on what you can lose unlike in the Championship.

[djp]

There is no other rules other than SCMP in League 1 and owner funding is included in the turnover figure, so there is no limit to what an owner can put into the club.

There is no limit on what you can lose unlike in the Championship.

But what happens to FFP calcs when you are absent from the Championship? Does it:

1. Get reset? e.g. we get relegated this season but promoted 2023/24 season, do we then start £39 million rolling 3 year from scratch for 2024/25 season?

or

2. Go on hold while out of the Championship.? e.g we get relegated this season but promoted 2023/24, then our 3 year rolling calc would be 2021/22, 2022/23 and 2024/25?

[Sleeping Giants]

But what happens to FFP calcs when you are absent from the Championship? Does it:

1. Get reset? e.g. we get relegated this season but promoted 2023/24 season, do we then start £39 million rolling 3 year from scratch for 2024/25 season?

or

2. Go on hold while out of the Championship.? e.g we get relegated this season but promoted 2023/24, then our 3 year rolling calc would be 2021/22, 2022/23 and 2024/25?

Promotion back up won't be easy, just look at Sheff Weds, Ipswich etc been down there for several years.

[djp]

Promotion back up won't be easy, just look at Sheff Weds, Ipswich etc been down there for several years.

I must admit I have thought the same myself, so I will rephrase my question.

What happens to FFP calcs when you are absent from the Championship for a few generations? Does it go on hold while out of the Championship? e.g we get relegated this season but promoted 2069/70, then our 3 year rolling calc would be 2021/22, 2022/23 and 2070/71 seasons?

Hopefully with inflation we don’t need to worry but what if world economy collapses and we instead have deflation, could be heading for a massive fine and points deduction.

[Sleeping Giants]

I must admit I have thought the same myself, so I will rephrase my question.

What happens to FFP calcs when you are absent from the Championship for a few generations? Does it go on hold while out of the Championship? e.g we get relegated this season but promoted 2069/70, then our 3 year rolling calc would be 2021/22, 2022/23 and 2070/71 seasons?

Hopefully with inflation we don’t need to worry but what if world economy collapses and we instead have deflation, could be heading for a massive fine and points deduction.

I think you worry too much