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Norwich City’s Championship rivals hit with January transfer sanctions

11:08 15 December 2014

Norwich City

Norwich City's Championship rivals Nottingham Forest will not be able to sign players in January. Picture by Paul Chesterton/Focus Images Ltd

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Norwich City’s Championship rivals Blackburn, Leeds and Nottingham Forest have been hit with a January transfer window embargo after failing to meet the Football League’s financial fair play rules for the 2013/14 season.

The Football League released a statement on Monday morning confirming all three will be subject to an ‘FFP embargo’ from January 1 until the end of the current campaign.

The Canaries, along with Fulham and Cardiff City, are exempt for one season from FFP assessment following their relegation from the Premier League during the season covered by the Football League’s accounting period.

A number of City’s other rivals could also face the same punishment, with the Football League currently in further discussions. Any club found guilty of breaching FFP regulations will only be able to sign new players under exceptional circumstances, but they will not be allowed to pay transfer or loan or compensation fees for players.

Nottingham Forest, Blackburn and Leeds all exceeded the maximum permitted deviation of £8m - consisting of a maximum adjusted operating loss of £3m plus a further maximum of £5m of shareholder investment - during the 2013/14 season.

The Football League statement on Monday morning read: “An initial analysis of Financial Fair Play submissions from the current 24 Championship clubs has indicated that three clubs – Blackburn Rovers, Leeds United and Nottingham Forest – have failed to meet the Fair Play Requirement under the division’s Financial Fair Play rules. Consequently, all three will be subject to an ‘FFP embargo’ under Football League regulations from January 1, 2015 for the remainder of the current campaign.

“The Football League is currently in discussions with a number of other clubs over their FFP submissions and will confirm any further FFP embargoes, if any, in due course. It will also now consider submissions from the three clubs promoted to the Premier League and the three clubs relegated to League One at the end of the 2013/14 season.

“Blackburn, Leeds and Forest all exceeded the maximum permitted deviation of £8m - consisting of a maximum adjusted operating loss of £3m plus a further maximum of £5m of shareholder investment - during the 2013/14 playing season. Each club will have the opportunity to have its FFP embargo lifted at the end of the season by demonstrating that it has stayed within the maximum permitted deviation of £6m (£3m operating loss plus £3m shareholder investment) for the 2014/15 season.”

The Football League has also confirmed the way in which FFP embargoes will operate for clubs placed under this sanction. Clubs will be prohibited from registering any new professional players (permanent contract or loan) unless they have:

• 24 or fewer established players (players aged 21 or over that have made at least 5 starting appearances for the club).

Where clubs have fewer than 24 established players, they will only be permitted to sign players in the following circumstances (with the player in question being added to the club’s list of established players regardless of his age or previous playing experience):

• Where the employee costs of a player being signed are less than £600,000 per annum (or pro-rata if

signed on a shorter contract).

Where clubs have 24 established players, they will be permitted to trade on a ‘one out, one in’ basis but only if the employee costs of the player coming in to the club are no more than whichever is the lower amount of:

• 75% of the equivalent costs of the player going out.

• Or a maximum of £600,000 per annum (or pro-rata if signed on shorter contract)

In addition:

• Clubs under an FFP embargo will be permitted to sign a goalkeeper on an emergency basis (in line with existing regulations).

• Clubs under an FFP embargo will not be permitted to pay transfer fees or compensation fees for professional players.

• Clubs under an FFP embargo will not be permitted to pay a loan fee to another club, they may only pay the player’s wage (or a contribution towards it).

• For incoming players, clubs can only pay Agents’ Fees as a benefit in kind to the player in question (as long as they do not exceed the £600,000 employee costs limit).

16 comments

  • Nmtd's post pretty much covers how ludicrous ffp is cutty. Promoted QPR and Leicester drove a fleet of busses through the rules last season and face massive fines they will probably avoid paying because the PL has nothing to do with collection. Meanwhile at debt free Norwich the board has prudently declared it will only trade during the window which leaves us no better off than a sanctioned club. To go on a spree a club needs shareholders who can subsidise an overspend. Our parachute payments wont help buy players if the money is needed for running costs.

    Report this comment

    Lincs Canary

    Wednesday, December 17, 2014

  • Not really bothered about those 3 clubs tbh. Now if it had been Bournemouth, Boro + Binners....

    Report this comment

    Timbo

    Tuesday, December 16, 2014

  • Steady On, Mellow_Yellow.

    Report this comment

    Steely Dan

    Tuesday, December 16, 2014

  • :) indeed!

    Report this comment

    el dingo

    Tuesday, December 16, 2014

  • But we're happy el Dingo. Christmas is coming, 5-0 winners on Saturday and all is right with the world.

    Report this comment

    Swiss Canary

    Tuesday, December 16, 2014

  • @Swiss - I never said I had any disposable income:)

    Report this comment

    el dingo

    Tuesday, December 16, 2014

  • Where is Lincs when you need him?

    Report this comment

    cutty

    Tuesday, December 16, 2014

  • Late 50s, divorced and need to work until I am 90 to fill the hole in my pension. Yes, I am jealous ;-)

    Report this comment

    Swiss Canary

    Tuesday, December 16, 2014

  • Unbelievable how they can get away with it really. Thanks for the info.

    Report this comment

    el dingo

    Monday, December 15, 2014

  • Mellow Yellow I have tried to be pleasant to you but you are not worth the effort. Mid 50s retired can do what I like. Hope yer jealous.

    Report this comment

    el dingo

    Monday, December 15, 2014

  • They just escaped this year and Mr Mick McCheerfull was very ticked off by the FFP rules, especially parachute payments. It does make a difference in the first instance, but it soon wears off.

    Report this comment

    Swiss Canary

    Monday, December 15, 2014

  • just for a giggle .......... season 10\11 = 72.8M in debt 11\12 = 79.6M 12\13 = 82.4M 13\14 = 86.0M

    Report this comment

    nevermindthedanger

    Monday, December 15, 2014

  • net debt per year that is ........... I see it's now £86 million owed to Uncle Marcus

    Report this comment

    nevermindthedanger

    Monday, December 15, 2014

  • If I was on here as much as you el dingo I'd be very concerned.

    Report this comment

    Mellow_Yellow

    Monday, December 15, 2014

  • el dingo - FFP rules for Champ clubs needs a net debt of £8m+ to warrant any fine\embargo. No wage restriction, no % of turnover v wages applies, so anything goes really.1p5wich's cumulative debt means diddly squat and as we know they're spent nowt this season so they're in the clear ;-(

    Report this comment

    nevermindthedanger

    Monday, December 15, 2014

  • So where does this leave the binmen?

    Report this comment

    el dingo

    Monday, December 15, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

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