Financial Fair Play: Charlton criticise Championship changes

The Valley
Charlton say the League needs to be "very strong in terms of the sanctions they impose"

Charlton have criticised the changes to Financial Fair Play (FFP) regulations which were recently agreed by Championship clubs.

The Addicks were one of six clubs to vote against the alterations, which will allow larger losses from 2016-17.

The rules allow losses to go beyond a £15m cap but not exceed £39m over three seasons (averaging £13m a season).

"We don't agree with the changes," Charlton chief financial officer David Joyes told BBC London 94.9.

Championship FFP rules
2013-14: Losses of no more than £3m, up to £8m with owner investment*
2014-15: Losses of no more than £3m, up to £6m with owner investment
2015-16: Losses of no more than £2m, up to £13m with owner investment
From 2016-17 onwards: Permitted to lose up to £13m a year but can lose more in a given season, as long as club does not exceed an aggregate of £39m over a three-year period
*Clubs are set to submit 2013-14 accounts to the Football League in the coming weeks. Clubs which post losses exceeding £8m will be subject to sanctions, including a fine or a transfer embargo

"We are looking to a break-even model. We want to reduce losses and certainly don't want to be increasing them. For us as a company, and the owner, we see that as a sensible way of running a business.

"Clearly a number of clubs disagree with that and want the ability to invest well over and above the current level of losses. It is a significant increase."

Earlier this month, Championship clubs agreed to new regulations, which will bring FFP into line with rules used by the Premier League.

From 2016-17 finances will be monitored over three seasons,external-link during which time clubs will be allowed to lose up to £15m without having to detail how that loss will be funded. Clubs who lose more than £15m will have to provide evidence of their ability to repay the debt.

The current rules allowed a maximum loss of £8m last season, including owner investment, while the permitted loss for the current campaign is £6m.

Roland Duchatelet
Belgian businessman Roland Ducahtelet bought Charlton Athletic in January, adding the Addicks to a global network of clubs including Standard Liege, Carl Zeiss Jena and AD Alcorcon

Championship clubs are set to submit their accounts to the Football League in the coming weeks and those who do not comply with the rules are set to face sanctions, which include a fine or the imposition of a transfer embargo.

Charlton, owned by Belgian businessman Roland Duchatelet, are expected to comply with the current rules and Joyes called on the Football League to punish clubs who do not.

"Everyone is aware of the current rules. They were well aware of them two or three years ago," he said.

"The Football League need to be very strong in terms of the sanctions they impose. They need to be absolutely in line with the regulations they have set and that everyone agreed to.

Charlton chief financial officer David Joyes:
"One of the reasons why our owner bought the club in January was because FFP was in place."

"I think there will be a number of clubs who aren't compliant for 2013-14 and face the possibility of a fine or a registration embargo. It will be interesting to see how that pans out."

Joyes says the changes to the regulations, which were voted through with a 75% majority at a meeting in Derby earlier this month, will "make it harder" for Charlton.

"One of the reasons why our owner bought the club in January was because FFP was in place and clubs were restricted in terms of the level of losses they were able to incur," he said.

"We do have an advantage as we are in a network of clubs around Europe and have a scouting network which operates across Europe. We will have to use that to the best of our capabilities and will also focus on the youth academy.

"We hope that combination will be able to outweigh the fact other clubs will be spending more money."