During the Christmas period, the Football League announced that AFC Bournemouth, Fulham, Millwall and Nottingham Forest all broke Financial Fair Play rules last season.
The 2014/15 campaign was played under the previously agreed Financial Fair Play rules which were set in April 2012 and were later changed by the Football League clubs in November 2014 by a unanimous vote.
The old rules allowed a ‘maximum permitted deviation of £6million’ which was ‘consisting of a maximum adjusted loss of £3m plus a further maximum of £3m of shareholder investment.’
As the four clubs ‘exceeding the maximum permitted deviation’ then all clubs broke FFP rules.
Fulham and Nottingham Forest were given a ‘FFP embargo’ for the remainder of the current campaign, preventing them from signing new players. Whilst bizarrely, Millwall who were relegated to League One were not punished despite breaking the same rules.
As the Cherries won promotion to the Premier League they were handed a fine, which had not been previously announced.
The Cherries accounts, which have been analysed by insidermedia.com have revealed that the Cherries paid a fine of £7.6million for breaking FFP.
The accounts also revealed that alterations to Dean Court to comply with Premier League regulations cost the club £4.6million.
There was also a £2million payment to former shareholders following promotion to the Premier League.
Overall the Cherries posted pre-tax losses of £39.1 million for the year ending 31st July 2015.
In a report alongside the results AFC Bournemouth chairman Jeff Mostyn said…
‘Football wages, including promotion bonuses and paid player signing on fees, continue to be the largest expense for the club, with a 76 per cent increase in total staff costs from the previous year.
‘The directors continue to maintain close control over expenditure and have implemented effective policies and procedures to ensure the club is run efficiently and effectively.’
Am I the only one a bit confused as to how the accounts can include a fine of £7 million for overspending when the fine wouldn’t be calculated until long after the accounts had been submitted? – Join the conversation here.
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