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.
Simply, you can lose £39m over a rolling 3 year period in the championship. So as our revenue is so small add in Tony's £2m per year, we have around £10m to spend on all costs so a player budget of around £7m. The £39m will never be troubled unless we can find someone who is prepared to inject £13m per year.
Championship rules here
https://www.efl.com/governance/regul...sustainability
In league 1 you can spend 60% of your turnover on wages plus any transfer income plus any owner capital injections, Tony has tended to sell a player when we go down, we get parachute payments from the Championship he still puts his £2m in all player contracts have relegation clauses so first year down we have a healthy budget
full rules are here for league 1
https://www.efl.com/governance/regul...guidance-notes

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