Championship facing 'financial armageddon' after TEN clubs placed under transfer embargo last month..(Rams/Owls/Blues/...)[Mail online]

r00fie1

Well-known member

Tell Boro fans something which is a surprise...because this news isnt!
Some clubs in particular have laughed in the faces of football authorities and fans have thrown brick bats at honest Chairman - like Steve Gibson, for pointing out the unfairness in implementing the rules.
Maybe I missed it, but this amounts to getting on for half the Championship [in one month] - who else is next?


Championship facing 'financial armageddon' after TEN clubs were placed under a transfer embargo last month... with the Covid-19 pandemic set to impact the sales of players to Premier League teams this summer

  • Ten Championship clubs have been placed under a transfer embargo
  • Derby, Sheffield Wednesday and Cardiff City are three of the teams in question
  • Some clubs are believed to be taking the penalty early ahead of the summer
  • An unnamed official warned that the pandemic will impact sales of players
By Mike Keegan For The Daily Mail

Published: 22:31, 5 April 2021 | Updated: 12:23, 6 April 2021

Ten Championship clubs were placed under transfer embargo at the same time — with concerns growing that some second-tier outfits are facing ‘financial Armageddon’.
Sportsmail can reveal that late last month, almost half of the league was subject to a registration ban in a bombshell discovery which has led to claims the integrity of the competition has been seriously undermined.

Clubs have clashed with the English Football League on the grounds of timing, after Government guidelines stipulated that it is now possible for companies, including football clubs, to extend the deadline with which to file company accounts by three months.

It has emerged that the EFL has opted not to mirror this extension period, leaving a host of clubs on a collision course with the football body regarding late submission of their respective accounts.

The clubs in question were Birmingham City, Blackburn Rovers, Cardiff City, Coventry City, Derby County, Huddersfield Town, Luton Town, Reading, Sheffield Wednesday and Stoke City.
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Of those, it is understood that Huddersfield have now come off the list, while Stoke are expected soon to follow suit, with both clubs being hit with the penalty thanks to administrative — rather than financial — issues.

However, the shocking size of the group has illustrated the strain clubs are under, thanks in some cases to overspending.

On Tuesday Coventry issued a statement confirming the transfer embargo, while explaining they had take a Government option to file company accounts with a three month delay.

The club outlined that the 'purely administrative embargo' would then be lifted thereafter, and summer plans would not be impacted.

Luton Town, likewise, struck a similar tone with an official statement of their own.

The club said: 'Our first embargo for a decade is simply an anomaly brought about by an unsynchronised timing of financial reports due to the pandemic.

'The club’s 2019/20 accounts, whilst finalised, have yet to be signed off by our auditors which will be done well before the statutory deadline.

Given the exceptionally difficult operating environment caused by the pandemic the requirement to continue to play “behind closed doors”, financial forecasts have rightly been scrutinised much more thoroughly and Companies House provided an extension of the statutory filing deadline to June to create sufficient time to complete this additional work accurately.

'Indeed the club will publish unqualified accounts before the end of April.

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'However, EFL rules couldn't be adjusted to meet the Companies House extension and require that signed accounts still needed to be submitted in March, which the club was unable to achieve.

'The matter will be resolved as our auditors conclude the report in the next couple of weeks.'

The Covid-19 pandemic, which has removed matchday revenue, has also had a grave impact and there are fears that many in the group will be unable to strengthen their squads for next season.

The EFL declined to comment. A spokesperson said: ‘The league does not confirm the names of clubs placed under registration embargo.’

However, one unnamed official, at a club not on the list, said: ‘This shows you what we are up against.

‘When you have almost half the league under embargo it questions the integrity of the whole competition.

'This isn’t just one or two. Covid has had an impact but you have a lot of clubs spending money they simply don’t have. Financial Armageddon is coming.’

The transfer window does not reopen until the summer. Some believe clubs are taking the penalty now hoping that they will be in a position to trade their way out of embargo when it reopens.
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But the official warned that the impact of the pandemic means that selling players to the top flight will be difficult, saying: ‘The Premier League have gone on record to say that Covid will cost £2 billion this season.

‘In the January window, with a couple of exceptions, it was mainly loans. While top players may move, Championship clubs will do well to get decent money for the players they’re already looking at selling.’

Clubs can be forbidden from signing players for a wide range of financial offences.

All of those clubs on the list were approached for comment. No responses were forthcoming.
 
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Laughing

Well-known member
This was always likely to happen at somepoint, the pandemic has just speeded things up. It's unclear from that article whether the problem is solely administrative, but it hints at other financial irregularities.

It it's just a case of clubs filing late that's one thing the EFL should have managed better.

The accusation of clubs spending money they don't have is a bigger issue.

Football is generally unsustainable now with it being financially top-heavy. The 200 million windfall for promotion is always going to have some clubs gambling to get into the prem, which let's face it is a despot for football.
 

r00fie1

Well-known member
Some clubs are claiming the issue is "administrative" and have pointed to delayed or late submissions.......
 

r00fie1

Well-known member
This was always likely to happen at somepoint, the pandemic has just speeded things up. It's unclear from that article whether the problem is solely administrative, but it hints at other financial irregularities.

It it's just a case of clubs filing late that's one thing the EFL should have managed better.

The accusation of clubs spending money they don't have is a bigger issue.

Football is generally unsustainable now with it being financially top-heavy. The 200 million windfall for promotion is always going to have some clubs gambling to get into the prem, which let's face it is a despot for football.
Aye up chap. (y)

Some of the clubs are calling it an "administrative" issue - with late submissions - citing "covid 19" as a contributory factor: maybe its something new, but how long have human viruses infected computer software so that financial information cannot be submitted securely via the internet?

Maybe its football which needs the vaccine, not the computers?

Maybe the actual "virus" is the weakness of the F.A and the EFL to stand up to those clubs who have infected football by getting away with flagrant abuses of FFP rules?

Or maybe they dont know they are carrying the "virus"?

However much those ten clubs feel "embarrassed" and claim the transfer embargo was "ridiculous" - does anyone really believe that 10 clubs were late doing their financial admin in the same month by coincidence?

If they are - they need fining for not doing whats required of them.

There maybe genuine issues for clubs and Its obvious covid 19 has impacted on incomes - but that doesnt stop you submitting financial statements or information!

Could you imagine the response if you told HMRC that you have delayed your Tax - Returns due to covid - 19?
Or cancelled your direct - debit to the local Council Tax Department......

We know football is in a cack state - but it seems to just bump along from crisis - to - crisis like it will all be alright tomorrow... "manana..."
 

Nosmo-King

Well-known member
Can’t see much changing - unless a club goes bust. With teams coming down from the Prem and having parachute augments it is no coincidence the top 2 in the Championship were both relegated last season. And the 3rd team relegated looks likely to be in the playoffs.The financial advantage they have is massive. So how do you square this circle of financially being on a par?

The Championship being touted as the most competitive league is somewhat of an illusion
 

Laughing

Well-known member
Aye up chap. (y)

Some of the clubs are calling it an "administrative" issue - with late submissions - citing "covid 19" as a contributory factor: maybe its something new, but how long have human viruses infected computer software so that financial information cannot be submitted securely via the internet?

Maybe its football which needs the vaccine, not the computers?

Maybe the actual "virus" is the weakness of the F.A and the EFL to stand up to those clubs who have infected football by getting away with flagrant abuses of FFP rules?

Or maybe they dont know they are carrying the "virus"?

However much those ten clubs feel "embarrassed" and claim the transfer embargo was "ridiculous" - does anyone really believe that 10 clubs were late doing their financial admin in the same month by coincidence?

If they are - they need fining for not doing whats required of them.

There maybe genuine issues for clubs and Its obvious covid 19 has impacted on incomes - but that doesnt stop you submitting financial statements or information!

Could you imagine the response if you told HMRC that you have delayed your Tax - Returns due to covid - 19?
Or cancelled your direct - debit to the local Council Tax Department......

We know football is in a cack state - but it seems to just bump along from crisis - to - crisis like it will all be alright tomorrow... "manana..."
Very eloquent post roofie.
 

JackG

Well-known member
Aye up chap. (y)

Some of the clubs are calling it an "administrative" issue - with late submissions - citing "covid 19" as a contributory factor: maybe its something new, but how long have human viruses infected computer software so that financial information cannot be submitted securely via the internet?

Maybe its football which needs the vaccine, not the computers?

Maybe the actual "virus" is the weakness of the F.A and the EFL to stand up to those clubs who have infected football by getting away with flagrant abuses of FFP rules?

Or maybe they dont know they are carrying the "virus"?

However much those ten clubs feel "embarrassed" and claim the transfer embargo was "ridiculous" - does anyone really believe that 10 clubs were late doing their financial admin in the same month by coincidence?

If they are - they need fining for not doing whats required of them.

There maybe genuine issues for clubs and Its obvious covid 19 has impacted on incomes - but that doesnt stop you submitting financial statements or information!

Could you imagine the response if you told HMRC that you have delayed your Tax - Returns due to covid - 19?
Or cancelled your direct - debit to the local Council Tax Department......

We know football is in a cack state - but it seems to just bump along from crisis - to - crisis like it will all be alright tomorrow... "manana..."
I think the clubs are saying that they've taken advantage of the governments covid-related 3-month extension to the usual filing deadline. The EFL haven't adjusted their March deadline so clubs are in technical breach of EFL rules but not government regs. The article appears to be conflating this with financial difficulties. I'm sure many clubs are in difficulties but I'm not sure if this sheds much light.
 

BoroMart

Well-known member
I just hope that the EFL do not allow these clubs to go unpunished, because that in turn punishes the teams , like us, that have played by the book and planned properly during this pandemic.

I mean Cardiff went out and outbid us for Kieffer Moore and are above us in the table, knowing that if this pandemic carried on (as was likely) they could be in financial trouble.

Stoke too, signed Fox, Chester, Fletcher and Mikel they must be on huge wages.
 

r00fie1

Well-known member
I think the clubs are saying that they've taken advantage of the governments covid-related 3-month extension to the usual filing deadline. The EFL haven't adjusted their March deadline so clubs are in technical breach of EFL rules but not government regs. The article appears to be conflating this with financial difficulties. I'm sure many clubs are in difficulties but I'm not sure if this sheds much light.
Its the fact that 10 were sanctioned - albeit for different lengths of time last month. There`s the usual suaspects - Im sure we will find out in due course. (y)
 

JackG

Well-known member
I just hope that the EFL do not allow these clubs to go unpunished, because that in turn punishes the teams , like us, that have played by the book and planned properly during this pandemic.

I mean Cardiff went out and outbid us for Kieffer Moore and are above us in the table, knowing that if this pandemic carried on (as was likely) they could be in financial trouble.

Stoke too, signed Fox, Chester, Fletcher and Mikel they must be on huge wages.
I don't think anyone will be sanctioned for overspending for the foreseeable future - the rules are in a state of flux and it's too hard to separate covid consequences from outright chicanery. That doesn't mean they'll all get away with it. The combination of deliberate overspending followed by a collapse in revenues will plunge some into administration.
 
Birmingham are a club who have the potential to be the biggest victim of folding like Bury. They have bits of ownership being passed between unknown owners between China and Cambodia. Different companies owning the Stadium and renting it back to the club, parts of the ground failing Safety checks.
We should also be aware of the Debts of our own club that are thankfully to companies with links to our chairman.
Link 1
Link 2
Link 3
 

Mr.DerbyCountyFC

Active member
Aye up chap. (y)

Some of the clubs are calling it an "administrative" issue - with late submissions - citing "covid 19" as a contributory factor: maybe its something new, but how long have human viruses infected computer software so that financial information cannot be submitted securely via the internet?

Maybe its football which needs the vaccine, not the computers?

Maybe the actual "virus" is the weakness of the F.A and the EFL to stand up to those clubs who have infected football by getting away with flagrant abuses of FFP rules?

Or maybe they dont know they are carrying the "virus"?

However much those ten clubs feel "embarrassed" and claim the transfer embargo was "ridiculous" - does anyone really believe that 10 clubs were late doing their financial admin in the same month by coincidence?

If they are - they need fining for not doing whats required of them.

There maybe genuine issues for clubs and Its obvious covid 19 has impacted on incomes - but that doesnt stop you submitting financial statements or information!

Could you imagine the response if you told HMRC that you have delayed your Tax - Returns due to covid - 19?
Or cancelled your direct - debit to the local Council Tax Department......

We know football is in a cack state - but it seems to just bump along from crisis - to - crisis like it will all be alright tomorrow... "manana..."
Right so you want us to get fined for not filling the account? We can’t submit the account until the EFL hearing is over but hey it’s ok you know it all eh Roofie? Clown. 🤡👍
 

FatCat

Well-known member
Right so you want us to get fined for not filling the account? We can’t submit the account until the EFL hearing is over but hey it’s ok you know it all eh Roofie? Clown. 🤡👍
When is your hearing over ? The efl appealed the decision and Ive heard nothing since re timelines. If you are going to get docked points and relegated this season they need to hurry up.
 

r00fie1

Well-known member
When is your hearing over ? The efl appealed the decision and Ive heard nothing since re timelines. If you are going to get docked points and relegated this season they need to hurry up.
Forest will offer to "ground share"!
The latest "takeover" may see Pride Park chucked in the Derwent.(y)
 

Mr.DerbyCountyFC

Active member
When is your hearing over ? The efl appealed the decision and Ive heard nothing since re timelines. If you are going to get docked points and relegated this season they need to hurry up.
No idea when but I will tell you this there won’t be any points docked at all. If it’s anything then it’d be likely fines.
Forest will offer to "ground share"!
The latest "takeover" may see Pride Park chucked in the Derwent.(y)
Are you actually 5 years old or what Roofie? You’re embarrassing yourself.
 

Huddboro

Well-known member
I've heard they're going to be given a 12 point deduction but there's issues at the FA due to Rotherham and the repeated covid breaches. It's likely this decision will be final with no appeal granted.
 

Alvez_48

Well-known member
The elephant in the room is of course players wages..

It's been unsustainable for at least 15 years if not longer. I actually wouldn't mind a complete collapse of the structures. There is no way that a club should pay a Rudy Gestede equivalent 30,000 a week. It's an absolute scandal.
 

Laughing

Well-known member
The elephant in the room is of course players wages..

It's been unsustainable for at least 15 years if not longer. I actually wouldn't mind a complete collapse of the structures. There is no way that a club should pay a Rudy Gestede equivalent 30,000 a week. It's an absolute scandal.
No one who kicks a ball should get 30 grand a week. That's a free market for you though.
 
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