OPINION
EFL spending rules are starting to sting for some clubs in the Championship. Birmingham were docked nine points last season for flouting the rules and many clubs are resorting to loan deals this summer to try and balance the books.
The rules are there for a reason but, as with seemingly all financial matters, there are loopholes that exist that enable clubs to circumnavigate them
Leeds owner Andrea Radrizzani hit out at Derby at the recent FT Business of Football summit in London for selling their stadium to a company also registered to owner Mel Morris.
Radrizzani said it was “more cheating then sending a scout to see [Derby] training.” He was talking about the Spygate scandal that attracted so many column inches.
Radrizzani: Selling your stadium to a sister company is more cheating than sending a scout to see (Derby’s) training. #FTFootballSummit
— Raphael Honigstein? (@honigstein) May 21, 2019
And now it appears that Aston Villa have got in on the act too. Matt Maher, a journalist at the Express and Star, posted a tweet on Friday that read: “Documents filed with the Land Registry reveal Villa Park was sold to NSWE Stadium Ltd, a company controller by Nassef Sawiris and Wes Edens, for £56.7million on May 21.”
Documents filed with the Land Registry reveal Villa Park was sold to NSWE Stadium Ltd, a company controlled by Nassef Sawiris and Wes Edens, for £56.7million on May 21. More @ExpressandStar shortly. #avfc
— matt maher (@mjmarr_star) June 28, 2019
Kieran Maguire, who works in football finance at the University of Liverpool confirmed that what Derby and Villa are doing isn’t breaking the rules. He said that under the old rules the clubs couldn’t have done it. However, under the new Profitability & Sustainability rules clubs can “sell land, stadium, etc to a ‘friendly’ party (i.e. another club controlled by club owner) for a big sum & book a profit which reduces FFP/P&S losses.”
However a look at the new Profitability & Sustainability rules this clause appears to have been removed so clubs can sell land, stadium etc to a ‘friendly’ party (i.e. another club controlled by club owner) for a big sum & book a profit which reduces FFP/P&S losses. pic.twitter.com/bPWaxOQkf1
— Kieran Maguire (@KieranMaguire) June 27, 2019
Why this was done is anyone’s guess. Loopholes like this are a scourge on the game and lead to certain clubs being able to take advantage and flout rules that are supposed to be there to ensure a level playing field for everyone.
Radrizzani has a point and while it may be wrong to conflate this with Spygate, it’s clear that there’s something a bit rotten going on in football, with the backhanded approval of the authorities. Hopefully they will do something to stop it happening again in the future.