How new profit and sustainability regulations will impact clubs

CHAMPIONSHIP clubs have voted to disband profit and sustainability rules, previously known as financial fair play rules, which measured clubs over rolling three-year periods.

- By ALEX DICKEN

Clubs were permitted total losses of up to £39million.

Now clubs have fallen in line with a similar change in the Premier League. It is believed that 20 out of 24 voted in a system called Squad Cost Ratio. In simple terms, it means that for every £100 that a club generates through gate receipts, broadcast deals and commercial income, they are allowed to spend £85 on football costs. Income will also include money raised through player sales but that is expected to be averaged out over three years.

Clubs who spend 30 per cent more than they are allowed will be in a ‘green threshold’ and receive a fine.