Championship clubs’ new spending proposal and the impact on Blackburn
Blackburn Rovers will be involved in discussions about a new Championship spending limit proposal at the English Football League’s Annual General Meeting.
A ‘crunch’ EFL meeting will take place on Friday, with Championship clubs ‘locked in battle over proposed new spending rules’. Leeds United, Hull City, Stoke City, West Brom, Cardiff City and Swansea City are listed by The Telegraph as the six clubs ‘leading the charge’ for eased spending restrictions.
The Premier League has been unable to thrash out a ‘New Deal’ for the Football League, over funding and redistribution. The EFL outlined its disappointment at that in a March statement and now there is said to be ‘growing tension’ between clubs, over the future of financial controls.
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The plan, to allow clubs to spend 70 per cent of revenue on wages, transfers and agent fees, would follow in UEFA’s footsteps. On Friday, club chiefs will meet with the EFL at the league’s AGM where financial proposals are expected to be discussed, with a two-thirds majority verdict required to trigger a vote.
Hull vice-chairman Tan Kesler is set to be named on the EFL’s three-person board. Preston North End’s Peter Ridsdale is also part of the sounding board.
It’s stated that ‘a number of Championship clubs’ are in danger of breaching Profit and Sustainability rules. Clubs, under the current P&S laws, cannot exceed £39m of losses over three years. In the Premier League, maximum losses are £105m over that period.
Leicester City were charged by for breaking the rules last season and will be facing a points deduction despite earning promotion to the Premier League.
Blackburn Rovers will fall well inside that bracket after the sale of Adam Wharton to Crystal Palace for a ‘club record’ fee. They will also receive around £5million when David Raya completes his permanent move to Arsenal this summer.
The new deal with Sky Sports will provide a cash injection for EFL clubs but the pressure remains for the Premier League to agree a new distribution model.
