EFL probably waiting to see if they can void the season.
If they null and void the season they can quickly give the points deduction and it means nothing, but they will then be seen as doing something
I imagine they are dreading the points deduction decision if the season is finished at this point, but valid
Give Wednesday a 9 point deduction or less and they stay up ahead of us, and it looks really cynical
On the other hand, give them a 10 point deduction and they end up in the bottom 3 with no chance of making the deficit up again, unlike if they had been given it with games to play
All the more reason why they should just give punishments immediately rather than sitting around waiting for the problem to go away.
Maybe we should form a breakaway Football League.
If they give the point deductions now and then the season is declared null and void then they will remain unpunished.
That might suit the authorities. If it takes us out of the relegation places then it suits me fine.
I believe even before the suspension of the season that the EFL had past the cut off date for applying point deduction to this season if any are forth coming, So if they are punished it will be next season, the same goes for us as well. Which if there is a Charlton Football team playing in league 1 next year will likely cause are relegation to league 2 at the end of the 2020/2021 season.
I believe even before the suspension of the season that the EFL had past the cut off date for applying point deduction to this season if any are forth coming, So if they are punished it will be next season, the same goes for us as well. Which if there is a Charlton Football team playing in league 1 next year will likely cause are relegation to league 2 at the end of the 2020/2021 season.
Unless it has changed recently, points deductions awarded before a specified date (sometime in March ?) are applied to the current season. Deductions awarded after that date are applied to the current date if they make a material difference (eg the team become relegated) otherwise they are applied in the following season. It prevents clubs making a choice.
I believe even before the suspension of the season that the EFL had past the cut off date for applying point deduction to this season if any are forth coming, So if they are punished it will be next season, the same goes for us as well. Which if there is a Charlton Football team playing in league 1 next year will likely cause are relegation to league 2 at the end of the 2020/2021 season.
Unless it has changed recently, points deductions awarded before a specified date (sometime in March ?) are applied to the current season. Deductions awarded after that date are applied to the current date if they make a material difference (eg the team become relegated) otherwise they are applied in the following season. It prevents clubs making a choice.
This was the protocol brought in after Leeds decided to go into administration 5 minutes from the end of the final game of the season when their relegation to Division Three had been confirmed, effectively rendering the points penalty meaningless.
Surely this is a matter that has to be concluded before the end of this season? If they get a points deduction and go below us in the table then they declare the season is over, oh well. What they can't do is dither on the points deduction until next season if it directly affects who stays up and who goes down
Surely this is a matter that has to be concluded before the end of this season? If they get a points deduction and go below us in the table then they declare the season is over, oh well. What they can't do is dither on the points deduction until next season if it directly affects who stays up and who goes down
Indeed. Certainly if the EFL follow precedent & their own rules deciding when points deductions take place.
But then we know they are a law to themselves & will do whatever causes the least agro
Funnily just had a link on my phone to an "Athletic" article
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
Barnsley are one of several clubs considering legal action against the English Football League if they are relegated this season but Birmingham City, Derby County or Sheffield Wednesday are allowed to start next season in the Championship on minus points because of financial fair play (FFP) sanctions
Derby and Sheffield Wednesday face independent disciplinary hearings related to the sale of their stadiums to their owners, while the EFL has lodged a second appeal against a decision to clear Birmingham of breaking a settlement linked to an earlier breach of the spending rules.
Of these cases, the first two are the most significant in terms of what is at stake and their potential impact on this season’s relegation picture, with Derby 12 points clear of Charlton Athletic in 22nd place, the final relegation spot, and Sheffield Wednesday three points worse off than the Rams.
Barnsley are bottom, seven points behind 21st-placed Hull City, but their co-owner Paul Conway is in no mood to accept relegation quietly.
“People seem to think little old Barnsley will follow the rules and not make a fuss,” Conway told The Athletic.
“If we’ve been wronged as a result of the league not following its own rules, then it stands to reason that we’d go against the league and its TV money and ask them to pay us the difference in revenue. We think that’s fair and we hope it will benefit other clubs who follow the rules and try to develop young talent.
“I’m an American and in American sports, we self-regulate — if someone breaks the rules, they are cheating the rest of us and we take action.
“We went through this two years ago, when we were five minutes from staying up on the last day only for Bolton to win and go above us. Everyone knew they were cheating the system and were hundreds of millions in debt.
“We decided not to do anything about it then but our attitude has changed. Relegation to League One cost us about £7 million in revenue. If something like that happens again, we’ll make a claim and we think we’ll have a strong case. We’re not asking for a change in the rules. We are asking for the rules to be followed.”
Conway and his fellow investors, who include Chinese-American entrepreneur Chien Lee and Oakland Athletics executive Billy Beane, the man made famous by the book and film Moneyball, bought Barnsley in December 2017.
At the time, they had a stable of clubs that included teams in France and Switzerland, although the French side, OGC Nice, have since been sold, with a Belgian team, KV Oostende, recently taking their place. Conway has been trying to buy a team in Scotland.
Relegation in their first season in England was followed by promotion from League One last season and while Barnsley have struggled in the Championship again this season, they have done so with the division’s smallest budget and youngest team. Results have improved as the season has gone on.
“We operate to a balanced budget —in fact, going to the coronavirus crisis we were positive for the season,” said Conway.
“That’s just how we do it but when everyone else in the division is losing £9-10 million on average, we expect the league to apply its rules. It’s pretty funny hearing some of these Championship clubs arguing for a bailout when they’re budgeting to lose money every season.
“It can’t continue like this — no other major league acts like this. If you have teams not paying players or defaulting on transfer instalments, that goes right to the core of what a league is for.
"These 12-point sanctions (for going into administration) are ludicrous. In Germany, France, Spain, all over Europe, really, if you don’t pay your bills or you are late with your financials, you get demoted two or three divisions. That’s it. You’re down. We operate in four nations and England is the worst.”
Conway described the stadium-sale-and-leaseback loophole exploited by Birmingham, Derby, Sheffield Wednesday and others as an “esoteric issue” that will ultimately be decided on whether the valuations the clubs used were independent and commercially justifiable or not.
“Everyone gravitates towards the stadium sales but what about the black and white issues?” he asked.
“We know of one club that didn’t pay its wages on time. We know of another that has been late posting financial statements. There are questions about contracts — whether they were paid or not. These are black and white issues.
“Every club in England seems to get the benefit of the doubt but the clubs who do it right get punished. It shocks me and I don’t understand it.
“If people start defaulting on transfer payments, there will be a ripple effect throughout the game. If clubs were struggling to pay their wages before the virus hit, what are they going to be like now? What’s the league going to do about it?
“If anything good is to come of this crisis, it must be a cleansing process for the game. The changes we want to see are going to be forced on clubs. Everyone will have less cash. If the EFL doesn’t change, we’ll just see an exodus of talent and those of us who are trying to create value, and are committed to youth, will go elsewhere.”
Conway is by no means the only Championship boss to feel this way.
Speaking to The Athletic, Luton Town chief executive Gary Sweet said: “All outstanding sanctions absolutely need to be brought to justice prior to any decision to close the season.
“However challenging our circumstances at the moment, the EFL’s integrity will be further compromised if clubs who have broken its rules are not penalised.”
While another club owner, who did not want to be named, said the Sheffield Wednesday case, in particular, had to be resolved.
“(The EFL) is still getting on with it and they are pursuing it ‘vigorously’ — that’s what I’ve been told,” he said.
“It might even be automatic relegation.”
Wednesday’s alleged misconduct is related to how and when they sold their Hillsborough home to Chansiri, as well as the valuation of that transaction, with the EFL suspecting the Thai businessman and two former club executives misled the league.
The club have been under the microscope since last summer when they pushed their usual year-end back from May 31 to July 31, delaying the publication of their accounts for the previous season, when they finished 15th despite significant investment from Chansiri in the team.
That meant Wednesday were set to overshoot the league’s spending limits. Under “profitability and sustainability (P&S)” regulations introduced in 2016, losses are capped at £39 million over a rolling three-year period.
Wednesday lost nearly £10 million in 2015-16, just over £20 million in 2016-17, and were heading for a pre-tax loss of around £35 million in 2017-18 until they — like Aston Villa, Birmingham, Derby and Reading — took advantage of the loophole that allows owners to sell their stadiums or training grounds to themselves for a one-off profit.
Wednesday did this by selling Hillsborough to Chansiri for £60 million, which was recorded in the accounts as a profit of £38 million.
According to those accounts, which were signed off by the owner on June 20 last year and filed a day later, this turned a loss into a pre-tax profit of £2.6 million. Once deductions were made for infrastructure improvements and the academy, their three-year P&S loss was £19 million — £20 million inside the limit.
The Hillsborough sale was mentioned on the accounts’ penultimate page, where it is said the £60 million will be paid in eight annual instalments of £7.5 million. There was no reference to any rent, though, a key factor in the valuation.
But the real issues relate to the timing. According to documents at Companies House and the Land Registry, Sheffield 3 — the company Chansiri set up to buy the ground — was incorporated on June 21, the same day the accounts were filed, and the sale went through a week later.
This, though, is a year after Wednesday have accounted for it, which should be too late to count against their losses for 2017-18. Without the sale, Wednesday would have lost more than £57 million between 2016 and 2018 — £18 million over the limit.
Last season, Birmingham got a nine-point penalty for going £10 million over the three-year limit for losses. Since then, the EFL has told clubs points will be deducted on a sliding scale: three points for a breach of less than £2 million to 12 if it is more than £15 million. A further nine points can be taken if the panel agrees the breach involved deception or a failure to cooperate.
A 12-point penalty applied now would see Wednesday replace Charlton in the bottom three. A 21-point sanction would take them to the foot of the table, 14 off safety with nine to play.
Derby were the first club to spot the stadium-sale loophole in 2017 and transformed a huge annual loss into a £40 million profit when owner Mel Morris bought Pride Park for £80 million. Morris has made his intentions to defend his actions very clear, as have Wednesday. Both clubs have also said the decision to charge them is unlawful.
The Athletic has been told the club warned then-EFL chief executive Shaun Harvey about their P&S crunch and how they intended to resolve it. After several weeks of talks, the figure of £60 million for the stadium was said to have been approved by the league. This agreement came after the financial year-end but the club will argue this followed consultation with the EFL.
While Wednesday waits for the hearing, which The Athletic understands is imminent, they can take some confidence from a small victory in the arbitration stage of the proceedings that saw all the personal charges against Chansiri, former chief executive Katrien Meire and finance director John Redgate dropped.
The slow progress of the case has already sparked fears the dispute would spill over into the close season, risking legal action from the relegated clubs, but the possible extension of this campaign into the summer has given the EFL a chance to conclude all these cases this season.
Low confidence and a number of error-prone performances, including crushing 5-0 defeats by Blackburn Rovers and Brentford, has seen Wednesday plummet in the Championship standings since Christmas. Their only wins have come against Leeds United in January and Charlton in February.
Had they maintained their form from the first half of the campaign, they could perceivably have taken the hit of a points deduction without relegation seeming a certainty.
Although Wednesday boss Garry Monk and his players say that the spectre of a potential punishment from the EFL has had no bearing on their haphazard second half of the season, they also face the possibility of losing nine senior players at the conclusion of their contracts on June 30, another huge challenge should the season resume next month.
Speaking to reporters on a conference call on Tuesday, Monk said he has been “in regular contact” with club officials about the case but has not heard any news. “All the focus has been on these (training) protocols and all these things on how we return (to action),” he said.
Funnily just had a link on my phone to an "Athletic" article
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
I do worry about Charlton potentially becoming a voice in calling for punishments given our current mess, although given our lack of leadership away from the footballing side this seems very unlikely. Surely they wouldn't be able to to punish us (if required) at the same time as them though?
Funnily just had a link on my phone to an "Athletic" article
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
I do worry about Charlton potentially becoming a voice in calling for punishments given our current mess, although given our lack of leadership away from the footballing side this seems very unlikely. Surely they wouldn't be able to to punish us (if required) at the same time as them though?
Its one way they could actually get round it by leaving those in the relegation zone accordingly (if PPG was used)
i.e. Give Derby and Sheffield Wednesday the appropriate points deduction for them breaking FFP -They could then give us a 10-pts deduction due to the owners not providing whatever is necessary (if they can do that)
Of course we'd drop to the bottom of the table as a result but it wouldnt matter as its the same three going down that are in the relegation zone now
Funnily just had a link on my phone to an "Athletic" article
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
I do worry about Charlton potentially becoming a voice in calling for punishments given our current mess, although given our lack of leadership away from the footballing side this seems very unlikely. Surely they wouldn't be able to to punish us (if required) at the same time as them though?
Its one way they could actually get round it by leaving those in the relegation zone accordingly (if PPG was used)
i.e. Give Derby and Sheffield Wednesday the appropriate points deduction for them breaking FFP -They could then give us a 10-pts deduction due to the owners not providing whatever is necessary (if they can do that)
Of course we'd drop to the bottom of the table as a result but it wouldnt matter as its the same three going down that are in the relegation zone now
I might be wrong but Blackpool didn't get punished for going into receivership did they (not that I believe they should have)? So they can pick and choose what they do - you would hope they would consider how much of a role they played in screwing us over before punishing the club. Derby et al. deciding to break FFP rules is entirely different and those clubs chose to break the rules.
I dont think we have done anything wrong to get a points deduction. The EFL agreed to the sale (not that they can refuse - but that's their rules) & they have not passed TN for source & sustainability. We havent defrauded anyone or done any kick-backs like Sheff Wed or Derby.
We could get a points deduction if we went into administration, but that's in the future. The current EFL decisions are all about prior misdemeanors.
Let’s face it. The EFL are not going to take any decision that causes waves. They will do the bare minimum as always.
But surely the bare minimum in this case is sticking to their rules and giving out points deductions? If the teams go unpunished then it'll be like the wild West with rich owners buying and leasing back anything and everything to cover losses
Funnily just had a link on my phone to an "Athletic" article
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
I do worry about Charlton potentially becoming a voice in calling for punishments given our current mess, although given our lack of leadership away from the footballing side this seems very unlikely. Surely they wouldn't be able to to punish us (if required) at the same time as them though?
What current mess is there that impacts upon the EFL and the club complying with its rules ?
there is a dispute amongst the owners but as long as the wages are paid there is no current mess that the EFL can have a gripe about.
the SoF/SoW matter is EFLs issue, not the club’s since we are told evidence was provided. If the EFL can’t make a quick decision or decides to seek further explanation or documentation that’s their problem.
Apart from the odd conference call about how to resume the season, the EFL have been pretty much sat on their arses doing nothing for 2 months and they still haven't found the time to sort this out. Beyond shambolic.
Apart from the odd conference call about how to resume the season, the EFL have been pretty much sat on their arses doing nothing for 2 months and they still haven't found the time to sort this out. Beyond shambolic.
Possibly and I'm not saying that the EFL are a well run, well resourced, dynamic organisation but we just don't know what is going on behind the scenes there.
They have investigations with at least four championships clubs that we know of.
There maybe other issues going on with other clubs or takeovers and on top of that there is Covid19 and all the issues arising from that both within their offices and staffing as well as the financial and safety impact on their member clubs.
Funnily just had a link on my phone to an "Athletic" article
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
I do worry about Charlton potentially becoming a voice in calling for punishments given our current mess, although given our lack of leadership away from the footballing side this seems very unlikely. Surely they wouldn't be able to to punish us (if required) at the same time as them though?
What current mess is there that impacts upon the EFL and the club complying with its rules ?
there is a dispute amongst the owners but as long as the wages are paid there is no current mess that the EFL can have a gripe about.
the SoF/SoW matter is EFLs issue, not the club’s since we are told evidence was provided. If the EFL can’t make a quick decision or decides to seek further explanation or documentation that’s their problem.
I am thinking of the ongoing worry each month that wages will not be paid. That Nimer still hasn't put any funds into the club and has just claimed that he will only do this when necessary. I think it is something that is reasonable to consider. Hopefully this never comes to fruition of course. I have seen nothing to suggest we should have confidence that Nimer will do as he says. We will find out in the next week or so I imagine.
Apart from the odd conference call about how to resume the season, the EFL have been pretty much sat on their arses doing nothing for 2 months and they still haven't found the time to sort this out. Beyond shambolic.
Possibly and I'm not saying that the EFL are a well run, well resourced, dynamic organisation but we just don't know what is going on behind the scenes there.
They have investigations with at least four championships clubs that we know of.
There maybe other issues going on with other clubs or takeovers and on top of that there is Covid19 and all the issues arising from that both within their offices and staffing as well as the financial and safety impact on their member clubs.
I'm sure they do have some things to do but a quick google search brings up an article from a local Derby paper from October 2019 saying the EFL were investigating Derby. They were charged in January.
Sheffield Wednesday were charged in November.
How can this take so many months? They would've surely had to make a decision before now had the season not been suspended, so this only adds to the thoughts that they're just stringing it out in order to see what punishment they can get away with giving them in order to cause minimum damage.
Give them 12-15 points now and the season can't resume, all hell breaks loose with legal battles. Season resumes and both are comfortably 20 points safe. There's your 12-15 point deduction, don't do it again.
The Nimer lack of cash issue is a major worry of course, but so far it hasn't had any major impact of the sort that would attract EFL penalties though?
The Nimer lack of cash issue is a major worry of course, but so far it hasn't had any major impact of the sort that would attract EFL penalties though?
I don't think so but this is the EFL we are talking about!
Apart from the odd conference call about how to resume the season, the EFL have been pretty much sat on their arses doing nothing for 2 months and they still haven't found the time to sort this out. Beyond shambolic.
Possibly and I'm not saying that the EFL are a well run, well resourced, dynamic organisation but we just don't know what is going on behind the scenes there.
They have investigations with at least four championships clubs that we know of.
There maybe other issues going on with other clubs or takeovers and on top of that there is Covid19 and all the issues arising from that both within their offices and staffing as well as the financial and safety impact on their member clubs.
I'm sure they do have some things to do but a quick google search brings up an article from a local Derby paper from October 2019 saying the EFL were investigating Derby. They were charged in January.
Sheffield Wednesday were charged in November.
How can this take so many months? They would've surely had to make a decision before now had the season not been suspended, so this only adds to the thoughts that they're just stringing it out in order to see what punishment they can get away with giving them in order to cause minimum damage.
Give them 12-15 points now and the season can't resume, all hell breaks loose with legal battles. Season resumes and both are comfortably 20 points safe. There's your 12-15 point deduction, don't do it again.
Reminds me of the Tevez affair. Sorted out all too late & the Premier League then decided they couldn't relegate them retrospectively as it wouldnt be fair.
Apart from the odd conference call about how to resume the season, the EFL have been pretty much sat on their arses doing nothing for 2 months and they still haven't found the time to sort this out. Beyond shambolic.
Possibly and I'm not saying that the EFL are a well run, well resourced, dynamic organisation but we just don't know what is going on behind the scenes there.
They have investigations with at least four championships clubs that we know of.
There maybe other issues going on with other clubs or takeovers and on top of that there is Covid19 and all the issues arising from that both within their offices and staffing as well as the financial and safety impact on their member clubs.
I'm sure they do have some things to do but a quick google search brings up an article from a local Derby paper from October 2019 saying the EFL were investigating Derby. They were charged in January.
Sheffield Wednesday were charged in November.
How can this take so many months? They would've surely had to make a decision before now had the season not been suspended, so this only adds to the thoughts that they're just stringing it out in order to see what punishment they can get away with giving them in order to cause minimum damage.
Give them 12-15 points now and the season can't resume, all hell breaks loose with legal battles. Season resumes and both are comfortably 20 points safe. There's your 12-15 point deduction, don't do it again.
Reminds me of the Tevez affair. Sorted out all too late & the Premier League then decided they couldn't relegate them retrospectively as it wouldnt be fair.
Comments
But then we know they are a law to themselves & will do whatever causes the least agro
Comments that Barnsley and Luton are several clubs who'll be taking legal action if Birmingham | Derby | Sheff Wed are allowed to start next season in the Championship yet on minus points
Goes on to say that Derby 12-pts clear of Charlton and Sheffield Wednesday less than 12-pts clear of us would see us and the latter changing places
Barnsley havent asked for a change of the rules, they're asking that the rules be followed
Says these sanctions in England are ludicrous; in Germany, France, Spain if you dont pay bills or are late with anything financial then you get demoted two, three divisions but not in England
Barnsley are one of several clubs considering legal action against the English Football League if they are relegated this season but Birmingham City, Derby County or Sheffield Wednesday are allowed to start next season in the Championship on minus points because of financial fair play (FFP) sanctions
Derby and Sheffield Wednesday face independent disciplinary hearings related to the sale of their stadiums to their owners, while the EFL has lodged a second appeal against a decision to clear Birmingham of breaking a settlement linked to an earlier breach of the spending rules.
Of these cases, the first two are the most significant in terms of what is at stake and their potential impact on this season’s relegation picture, with Derby 12 points clear of Charlton Athletic in 22nd place, the final relegation spot, and Sheffield Wednesday three points worse off than the Rams.
Barnsley are bottom, seven points behind 21st-placed Hull City, but their co-owner Paul Conway is in no mood to accept relegation quietly.
“People seem to think little old Barnsley will follow the rules and not make a fuss,” Conway told The Athletic.
“If we’ve been wronged as a result of the league not following its own rules, then it stands to reason that we’d go against the league and its TV money and ask them to pay us the difference in revenue. We think that’s fair and we hope it will benefit other clubs who follow the rules and try to develop young talent.
“I’m an American and in American sports, we self-regulate — if someone breaks the rules, they are cheating the rest of us and we take action.
“We went through this two years ago, when we were five minutes from staying up on the last day only for Bolton to win and go above us. Everyone knew they were cheating the system and were hundreds of millions in debt.
“We decided not to do anything about it then but our attitude has changed. Relegation to League One cost us about £7 million in revenue. If something like that happens again, we’ll make a claim and we think we’ll have a strong case. We’re not asking for a change in the rules. We are asking for the rules to be followed.”
Conway and his fellow investors, who include Chinese-American entrepreneur Chien Lee and Oakland Athletics executive Billy Beane, the man made famous by the book and film Moneyball, bought Barnsley in December 2017.
At the time, they had a stable of clubs that included teams in France and Switzerland, although the French side, OGC Nice, have since been sold, with a Belgian team, KV Oostende, recently taking their place. Conway has been trying to buy a team in Scotland.
Relegation in their first season in England was followed by promotion from League One last season and while Barnsley have struggled in the Championship again this season, they have done so with the division’s smallest budget and youngest team. Results have improved as the season has gone on.
“We operate to a balanced budget —in fact, going to the coronavirus crisis we were positive for the season,” said Conway.
“That’s just how we do it but when everyone else in the division is losing £9-10 million on average, we expect the league to apply its rules. It’s pretty funny hearing some of these Championship clubs arguing for a bailout when they’re budgeting to lose money every season.
“It can’t continue like this — no other major league acts like this. If you have teams not paying players or defaulting on transfer instalments, that goes right to the core of what a league is for.
"These 12-point sanctions (for going into administration) are ludicrous. In Germany, France, Spain, all over Europe, really, if you don’t pay your bills or you are late with your financials, you get demoted two or three divisions. That’s it. You’re down. We operate in four nations and England is the worst.”
Conway described the stadium-sale-and-leaseback loophole exploited by Birmingham, Derby, Sheffield Wednesday and others as an “esoteric issue” that will ultimately be decided on whether the valuations the clubs used were independent and commercially justifiable or not.
“Everyone gravitates towards the stadium sales but what about the black and white issues?” he asked.
“We know of one club that didn’t pay its wages on time. We know of another that has been late posting financial statements. There are questions about contracts — whether they were paid or not. These are black and white issues.
“Every club in England seems to get the benefit of the doubt but the clubs who do it right get punished. It shocks me and I don’t understand it.
“If people start defaulting on transfer payments, there will be a ripple effect throughout the game. If clubs were struggling to pay their wages before the virus hit, what are they going to be like now? What’s the league going to do about it?
“If anything good is to come of this crisis, it must be a cleansing process for the game. The changes we want to see are going to be forced on clubs. Everyone will have less cash. If the EFL doesn’t change, we’ll just see an exodus of talent and those of us who are trying to create value, and are committed to youth, will go elsewhere.”
Conway is by no means the only Championship boss to feel this way.
Speaking to The Athletic, Luton Town chief executive Gary Sweet said: “All outstanding sanctions absolutely need to be brought to justice prior to any decision to close the season.
“However challenging our circumstances at the moment, the EFL’s integrity will be further compromised if clubs who have broken its rules are not penalised.”
While another club owner, who did not want to be named, said the Sheffield Wednesday case, in particular, had to be resolved.
“(The EFL) is still getting on with it and they are pursuing it ‘vigorously’ — that’s what I’ve been told,” he said.
“It might even be automatic relegation.”
Wednesday’s alleged misconduct is related to how and when they sold their Hillsborough home to Chansiri, as well as the valuation of that transaction, with the EFL suspecting the Thai businessman and two former club executives misled the league.
The club have been under the microscope since last summer when they pushed their usual year-end back from May 31 to July 31, delaying the publication of their accounts for the previous season, when they finished 15th despite significant investment from Chansiri in the team.
That meant Wednesday were set to overshoot the league’s spending limits. Under “profitability and sustainability (P&S)” regulations introduced in 2016, losses are capped at £39 million over a rolling three-year period.
Wednesday lost nearly £10 million in 2015-16, just over £20 million in 2016-17, and were heading for a pre-tax loss of around £35 million in 2017-18 until they — like Aston Villa, Birmingham, Derby and Reading — took advantage of the loophole that allows owners to sell their stadiums or training grounds to themselves for a one-off profit.
Wednesday did this by selling Hillsborough to Chansiri for £60 million, which was recorded in the accounts as a profit of £38 million.
According to those accounts, which were signed off by the owner on June 20 last year and filed a day later, this turned a loss into a pre-tax profit of £2.6 million. Once deductions were made for infrastructure improvements and the academy, their three-year P&S loss was £19 million — £20 million inside the limit.
The Hillsborough sale was mentioned on the accounts’ penultimate page, where it is said the £60 million will be paid in eight annual instalments of £7.5 million. There was no reference to any rent, though, a key factor in the valuation.
But the real issues relate to the timing. According to documents at Companies House and the Land Registry, Sheffield 3 — the company Chansiri set up to buy the ground — was incorporated on June 21, the same day the accounts were filed, and the sale went through a week later.
This, though, is a year after Wednesday have accounted for it, which should be too late to count against their losses for 2017-18. Without the sale, Wednesday would have lost more than £57 million between 2016 and 2018 — £18 million over the limit.
Last season, Birmingham got a nine-point penalty for going £10 million over the three-year limit for losses. Since then, the EFL has told clubs points will be deducted on a sliding scale: three points for a breach of less than £2 million to 12 if it is more than £15 million. A further nine points can be taken if the panel agrees the breach involved deception or a failure to cooperate.
A 12-point penalty applied now would see Wednesday replace Charlton in the bottom three. A 21-point sanction would take them to the foot of the table, 14 off safety with nine to play.
Derby were the first club to spot the stadium-sale loophole in 2017 and transformed a huge annual loss into a £40 million profit when owner Mel Morris bought Pride Park for £80 million. Morris has made his intentions to defend his actions very clear, as have Wednesday. Both clubs have also said the decision to charge them is unlawful.
The Athletic has been told the club warned then-EFL chief executive Shaun Harvey about their P&S crunch and how they intended to resolve it. After several weeks of talks, the figure of £60 million for the stadium was said to have been approved by the league. This agreement came after the financial year-end but the club will argue this followed consultation with the EFL.
While Wednesday waits for the hearing, which The Athletic understands is imminent, they can take some confidence from a small victory in the arbitration stage of the proceedings that saw all the personal charges against Chansiri, former chief executive Katrien Meire and finance director John Redgate dropped.
The slow progress of the case has already sparked fears the dispute would spill over into the close season, risking legal action from the relegated clubs, but the possible extension of this campaign into the summer has given the EFL a chance to conclude all these cases this season.
Low confidence and a number of error-prone performances, including crushing 5-0 defeats by Blackburn Rovers and Brentford, has seen Wednesday plummet in the Championship standings since Christmas. Their only wins have come against Leeds United in January and Charlton in February.
Had they maintained their form from the first half of the campaign, they could perceivably have taken the hit of a points deduction without relegation seeming a certainty.
Although Wednesday boss Garry Monk and his players say that the spectre of a potential punishment from the EFL has had no bearing on their haphazard second half of the season, they also face the possibility of losing nine senior players at the conclusion of their contracts on June 30, another huge challenge should the season resume next month.
Speaking to reporters on a conference call on Tuesday, Monk said he has been “in regular contact” with club officials about the case but has not heard any news. “All the focus has been on these (training) protocols and all these things on how we return (to action),” he said.
i.e. Give Derby and Sheffield Wednesday the appropriate points deduction for them breaking FFP -They could then give us a 10-pts deduction due to the owners not providing whatever is necessary (if they can do that)
Of course we'd drop to the bottom of the table as a result but it wouldnt matter as its the same three going down that are in the relegation zone now
We could get a points deduction if we went into administration, but that's in the future. The current EFL decisions are all about prior misdemeanors.
there is a dispute amongst the owners but as long as the wages are paid there is no current mess that the EFL can have a gripe about.
the SoF/SoW matter is EFLs issue, not the club’s since we are told evidence was provided. If the EFL can’t make a quick decision or decides to seek further explanation or documentation that’s their problem.
They have investigations with at least four championships clubs that we know of.
There maybe other issues going on with other clubs or takeovers and on top of that there is Covid19 and all the issues arising from that both within their offices and staffing as well as the financial and safety impact on their member clubs.
Sheffield Wednesday were charged in November.
How can this take so many months? They would've surely had to make a decision before now had the season not been suspended, so this only adds to the thoughts that they're just stringing it out in order to see what punishment they can get away with giving them in order to cause minimum damage.
Give them 12-15 points now and the season can't resume, all hell breaks loose with legal battles.
Season resumes and both are comfortably 20 points safe. There's your 12-15 point deduction, don't do it again.
It's no punishment at all ....... which is what the Barnsley chairman has beeen saying.