05 Aug 2014 19:41:00
Quick question about FFP. If a club has obviously made attempts to significantly reduce losses relative to the previous set of accounts, will this act in the clubs favour when any potential sanctions are enforced? Rather than all punishment being uniform if the maximum losses are not met?

I hope it would, because looking at our business this summer it is clear we are trying to reduce the wage bill and even if it is not enough, surely the punishment should not be so severe when it is clear the club is trying to head in the right direction.

1.) 05 Aug 2014
In the rules for the championship it states, if a club go's above the maximum allowed, but has reduced the overspend considerably and is heading in the right direction, no penalties will be placed on the club, it states, there will be no penalties for over spend for season 13/14, but books will have to be submitted on the 1st of December 2014, if it looks to the FA they are well over the allowed amount, there could be a transfer embargo on the club from the 1st of Jan 2015.

2.) 05 Aug 2014
Great, thanks. So with the limit being £8m this year, if we have shown to have improved from the -£17m to say -£12m, they wouldn't necessarily enforce a transfer embargo despite breaching the limit?

3.) 06 Aug 2014
Not sure a club can over spend by 8m then get looked at leniently if they over spend by say 4m, but with the two Algerians they will be both written off, along with any monies outlay to pay off there contracts, meaning between 4/5m will come off the over spend, that would bring forest over spend down to around 3 to 4m, however if forest spent 10m over this coming season, they would be hit with a fine of 10m, as any over spend up to and above is a 100% fine, with there being no punishment for 13/14 season maybe forest can write off the 4/5m against this coming season. Not sure you will see this Rad, I live in India, big time difference.

4.) 06 Aug 2014
Didn't quite say that right, the fines are from 1% for £250000 over, varying in percentage up 10m anything over 10m in a fine of 100%.

5.) 06 Aug 2014
Ok, think I understand it a bit better now. Thanks for your help. We'll see how it plays out come December. I am just glad to see the club now appearing to put an importance behind being run sustainably rather than spending crazy like last season with Billy's cousin adamant the rules couldn't be enforced. We should be aiming to be sustainable regardless of the rules.