February 28, 2018 by Made In Brum
So the accounts have been released and the headline news is we lost £17million in 6 months. As you may expect social media is now full of accountants and FFP experts breaking this down for us. Luckily I’ve been able to take all their knowledge on board and put it simply for you.
It’s hardly shocking we have reported the loss, we spent a load of money in the summer transfer window without bringing in any revenue from players sold. We have also got players on much higher wages now and the accounts show that expenses on players, staff etc has ballooned.
The new FFP regulations state that a club can not lose more than £39million over a 3 year period. This is worked out by allowing clubs to go over by £5million a year with an extra £8million injection by owners allowed. If we aren’t over this limit then we are very close to it. This is concerning as the EFL have the ability to impose a wide range of sanctions including fines, points deductions and transfer embargoes. I don’t know if we have broken FFP yet, time will tell with that. In the past teams that have broken FFP and been relegated haven’t been punished as they weren’t deemed to have benefited.