EFL - Finance Regulations:

https://www.efl.com/governance/financial-regulation/


EFL_CFRU_H_Maroon


As part of its continuing commitment to establish appropriate governance arrangements, the EFL created a separate department, the Club Financial Reporting Unit (or “CFRU”) to monitor and enforce the financial regulations member Clubs are required to follow.

The team consists of qualified accountants and has been in place since March 2022. It acts independently of EFL Board influence or that from other parts of the EFL.

The CFRU has delegated authority to review and decide on regulatory submissions and can also compel the provision of information and documents as part of its work.





Financial Fair Play

The CFRU has remit over all the EFL’s Financial Fair Play Rules which are different depending on which Division a Club is in:

Championship Clubs follow Profitability and Sustainability (“P&S”) Rules which dictate what losses Clubs are permitted to incur over a rolling three-year period.
League One and League Two Clubs follow the Salary Cost Management Protocol (“SCMP”) These state that Clubs can only spend a fixed percentage of its revenue on player wages etc. This limit can also be added to or impacted by equity injections or net transfer spend.
For more information about the EFL’s Financial Fair Play Rules, see Appendix 5 of the EFL Regulations.

Financial Records

EFL Clubs are also required to submit certain financial records to the CFRU at certain points of the year.

These submissions include annual accounts (and in the case of the Championship, interim accounts) and future financial information forecasts (or “FFI”). FFI information helps the CFRU understand a Club’s spending plans and how it plans to fund its activity.

Non-compliance with these regulations may lead to a registration embargo and if there are serious concerns over a Club’s financial health, the CFRU may enforce a business plan on the Club.

For more information about the financial records Clubs are required to submit to the CFRU, see EFL Regulation 16.

Amounts owed to HMRC

Clubs are required self-report when it is late paying debt to HMRC.

This notification has to be made within two normal working days of the relevant deadline and any default may result in a registration embargo.

For more information about the reporting obligations of Clubs concerning HMRC debts, see EFL Regulation 17.

Disciplinary action and sanctions

Where the CFRU considers there has been a breach of the Rules that cannot be resolved by a registration embargo, it can raise it to an external panel of experts, the Club Financial Review Panel (“CFRP”) for an independent determination. The same panel can also ratify any Agreed Decision between the Club and the CFRU.



In December 2022, EFL Clubs approved the appointment of the Club Financial Review Panel (“CFRP”). This independent, multi-disciplinary group makes determinations on matters concerning financial regulations.

The CFRP includes members with accountancy, legal and football expertise. It is chaired by Mr Christopher Quinlan KC, it will also comprise of Mr Jonathan Bellamy (Legal Member and Vice-Chair), Mr Geoff Mesher (Audit Member), Mr Dan Jones (Audit Member), Mr Nick Igoe (Football Member) and Ms Alison Royston (Football Member).

The broad skillset of the Panel is designed deliberately to ensure it is always in a position to opine authoritatively on issues put in in front of it.

Matters can be referred to the CFRP by the Club Financial Reporting Unit (“CFRU”),by the Clubs, or they can call certain matters in themselves:





Compliance Issues

Where the CFRU considers that a Club has breached a relevant financial regulation, it will attempt to come to an Agreed Decision with the Club which will then be provide to the CFRP for ratification.
If the CFRU and Club cannot agree on the breach or level of sanction, the CFRU will refer the matter to the CFRP. Any hearing must be held within 28 days of a matter being referred to the CFRP.
CFRU Decision Review



If a Club considers that the CFRU has misapplied the rules or acted outside its remit, the Club can refer that decision of the CFRU to CFRP for determination. This referral has to be within 14 days of the decision being made.
CFRP Call-in Review








For Season 2023/24 onwards, the CFRP will be provided with a summary of each Championship Club’s P&S position which will include any adjustments the CFRU has made. If the CFRP wishes, it can ask for more information to be provided by both the Club and the CFRU and choose whether the original decision(s) of the CFRU should be amended.
As referenced above, set timeframes within the EFL Regulations state that matters are heard and reviewed within a matter of weeks of it being referred. This is aimed at providing a quick, definitive outcome for all the parties involved as well as other member Clubs who may be impacted by any decision.

You do not have the required permissions to view the files attached to this post.

wez, if your seeing this could you put up the Cardiff City accounts for the last two years ?

the last post was locked so i thought id ask in here

Most pertinently, referenced above, the set timeframes within the EFL Regulations state that matters are heard and reviewed within a matter of weeks of it being referred. This is aimed at providing a quick solution


So , I may be wrong but I can’t see any amendments being proposed three days before the end of the window.

Transfers in January are “last minute “ but normally they are done within 30 days or more.

You have to have medicals , accommodation, bank authority, insurance etc.

If deals are undone and cancelled (by the EFL) within 3 days of the deadline then surely the EFL would be liable for costs reasonably occurred and clubs compensated ?

Most pertinently, referenced above, the set timeframes within the EFL Regulations state that matters are heard and reviewed within a matter of weeks of it being referred. This is aimed at providing a quick solution


So , I may be wrong but I can’t see any amendments being proposed three days before the end of the window.

Transfers in January are “last minute “ but normally they are done within 30 days or more.

You have to have medicals , accommodation, bank authority, insurance etc.

If deals are undone and cancelled (by the EFL) within 3 days of the deadline then surely the EFL would be liable for costs reasonably occurred and clubs compensated ?

Absolutely quality post very helpfull and clears up some questions for me. Thankyou!

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Any sponsorship revenue received by a club, having had the underlying deals investigated and given a clear bill of health, will be considered an exemption from FFP. But getting to the bottom of what does or doesn't amount to a legitimate sponsorship deal has proven extremely tricky in practice.



All the terms of FFP are in this contract perhaps another poster could use this as a reference and list the relevant terms

https://www.efl.com/documents/efl-handbook.pdf

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Any sponsorship revenue received by a club, having had the underlying deals investigated and given a clear bill of health, will be considered an exemption from FFP. But getting to the bottom of what does or doesn't amount to a legitimate sponsorship deal has proven extremely tricky in practice.



All the terms of FFP are in this contract perhaps another poster could use this as a reference and list the relevant terms

https://www.efl.com/documents/efl-handbook.pdf

Thanks Joff

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Any sponsorship revenue received by a club, having had the underlying deals investigated and given a clear bill of health, will be considered an exemption from FFP. But getting to the bottom of what does or doesn't amount to a legitimate sponsorship deal has proven extremely tricky in practice.



All the terms of FFP are in this contract perhaps another poster could use this as a reference and list the relevant terms

https://www.efl.com/documents/efl-handbook.pdf

Thanks Joff

I may be wrong here but the club probably had a change of heart, which makes financial sense. As we were not in the position to make the playoffs, additional more costly signings would make more of a difference next season. Something I agree with.

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Any sponsorship revenue received by a club, having had the underlying deals investigated and given a clear bill of health, will be considered an exemption from FFP. But getting to the bottom of what does or doesn't amount to a legitimate sponsorship deal has proven extremely tricky in practice.



All the terms of FFP are in this contract perhaps another poster could use this as a reference and list the relevant terms

https://www.efl.com/documents/efl-handbook.pdf

Thanks Joff

I may be wrong here but the club probably had a change of heart, which makes financial sense. As we were not in the position to make the playoffs, additional more costly signings would make more of a difference next season. Something I agree with.

I sort of agree with you.

But Bulut should have been told weeks before and they should not make excuses about FFP or saying 3 days before we got stopped, then 48hrs after they were apparently stopped lol they then bought a Celtic player.

Just be straight.

Let’s really see next Summer if we finally go for it, as it will be over 5 yrs since we went for Promotion.

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Any sponsorship revenue received by a club, having had the underlying deals investigated and given a clear bill of health, will be considered an exemption from FFP. But getting to the bottom of what does or doesn't amount to a legitimate sponsorship deal has proven extremely tricky in practice.



All the terms of FFP are in this contract perhaps another poster could use this as a reference and list the relevant terms

https://www.efl.com/documents/efl-handbook.pdf

Thanks Joff

I may be wrong here but the club probably had a change of heart, which makes financial sense. As we were not in the position to make the playoffs, additional more costly signings would make more of a difference next season. Something I agree with.

If that is the case of which I favour then why not say that instead of using this CFRU excuse?

Joff,

There are a few things that could of easily been done to ensure stay in FFP rules “if we were close to it which we can’t be”

A we have been getting rid of far more players than bringing in players, we reduced wages and we have not been buying players.




1) Why doesn’t one of Tans big companies sponsor the club therefore generating more income

2) Why are the clubs costs not broken down - People earning in excess of 500k per year for 2 days a week - That wage should be recharged to Tans other company for the other 3 days per week.

3) Are we sure owners travel costs are not included in there accounting? Reducing profit

4) Why leave business so late in the transfer window?? Everyone knows the later you leave it in the window the more an average player will cost you. Should of had business planned early in the window.

5) I now know Dalman has lent our club a total of £30mill at £2.7mill interest a year and another person I believe to be Tans Son has lent us money at high interest.
These could be deferred for a while.

6) Am I right Owners can gift their Club £10mill to buy players?

Any sponsorship revenue received by a club, having had the underlying deals investigated and given a clear bill of health, will be considered an exemption from FFP. But getting to the bottom of what does or doesn't amount to a legitimate sponsorship deal has proven extremely tricky in practice.



All the terms of FFP are in this contract perhaps another poster could use this as a reference and list the relevant terms

https://www.efl.com/documents/efl-handbook.pdf

Thanks Joff

I may be wrong here but the club probably had a change of heart, which makes financial sense. As we were not in the position to make the playoffs, additional more costly signings would make more of a difference next season. Something I agree with.

If that is the case of which I favour then why not say that instead of using this CFRU excuse?

Because Ian,

Our Regime can’t be straight and honest with us and even get somone to do their dirty work for them and made a total mess of it.

That’s all we ask is be honest with us.

wez, if your seeing this could you put up the Cardiff City accounts for the last two years ?

the last post was locked so i thought id ask in here

Google it and look at keiths posts on the search

https://find-and-update.company-informa ... ng-history