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EFL Announces Financial Sustainability Review
Thursday, 5th Sep 2019 17:28

The EFL has announced what is says will be “a comprehensive review of the regulations and procedures concerning the financial sustainability of EFL clubs”.

The review, in the wake of Bury's expulsion from the EFL and Bolton having come close to joining them, will be carried out in full consultation with clubs, but conducted independently.

It will be led by Jonathan Taylor QC, an expert on commercial and regulatory issues in sport, who is co-head of the Sports Group at law firm Bird & Bird with extensive experience in advising national and international sporting bodies, and who is already leading the existing review of the EFL’s governance systems and procedures.

An EFL statement reads: “The financial sustainability review will take place in two phases. Phase One will examine the background to Bury FC’s insolvency including the ownership of the club, management decisions and funding arrangements.

“It will also consider the role of the EFL’s regulations, including the application of the Owners’ and Directors’ Test, procedures in respect of financial viability and the approach to insolvent clubs and the EFL’s efforts to help secure a long-term future for Bury FC.

“The review team will consider all evidence carefully and at the conclusion of Phase One, an interim report will set out the history and causes of Bury FC’s financial difficulties and identify the key lessons to be learned for the future.

“That will feed into the next phase where the review will focus on the effectiveness of the EFL’s regulations and procedures in ensuring the financial sustainability of EFL clubs.

“Jonathan Taylor QC will make recommendations on modifications to the EFL’s articles of association, regulations and procedures for consideration by the EFL board and clubs.

“Any changes approved by the clubs at the EFL’s 2020 AGM would then come into immediate effect.”

Debbie Jevans, EFL executive chair, said: “The withdrawal of Bury FC’s membership is one of the most difficult decisions we have ever had to take at the EFL.

“This review will help everyone to understand what happened at Bury and ensure that, collectively, we learn and apply the right lessons for the future.

“The financial sustainability of EFL clubs is of vital importance to supporters and communities across the country as well as to the growth and development of the League itself.

“The EFL recognises its responsibility to examine whether we can improve our regulations and procedures in this area. In close collaboration with our membership, we want to play our part in helping to ensure a successful and prosperous future for the EFL so our clubs can contribute to their communities for many years to come.”

Photo: Action Images

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BlueMachines added 17:33 - Sep 5
Stopping agents taking so much out of the game would be a great start.

Suffolkboy added 17:45 - Sep 5
How many were actually impressed with D Jevans when interviewed on TV recently ? She seemed almost pathetically deficient in both her response and understanding of what sort of proactive role both she and her EFL board should be both aware of , and have the prerogative to act upon !
Positivity seemed definitely subservient to clarity and determination : knowledge and financial maturity were lacking .OR is she hamstrung by the lack of quality and support from those at the top ?
Whatever this smacks of something after the horse has bolted !
Let’s all hope there’s a meaningful change brought about .Remember ,too, that M E has serious concerns over the financial regulation and how it’s been applied by EFL.

britbiker added 19:35 - Sep 5
Would love to know more about the fit and proper rules for owners. Dread to think what you would need to do to fail it.

marcus1642 added 23:28 - Sep 5
Surely this review should start with how much clubs are paying their professional football players, and this is the biggest outlay that all clubs have.

AucklandBlue added 00:45 - Sep 6
The key problem in English football is the overwhelming greed of the EPL in general and its payers in particular. The powers at be babble on about sustainable financial models for the game but if I could wave a magic wand I would:
1) Split all English club football TV revenue (including all EPL games) 70% (3.5% per club on average) for the EPL, 15% for the Championship (0.625% per club), 7.5% for League 1 (just over 0.3% per club), 5% for League 2 (just over 0.2% per club) and 2.5% for the National League (5th tier clubs).
2) I would also prohibit any club spending more than 60% of its total revenue (including TV income) on players wages/bonuses etc etc
Being realistic, the chance of either 'initiative' seeing the light of day is nil sadly. Which is why English football outside the big 6 clubs will continue to stagger from financial crisis to crisis!

rabbit added 11:14 - Sep 6
I agree with your sentiments Auckland and I can see exactly what you mean with reference to cascading revenue down.
What I don't think is that it would not deter the irresponsible owners who acquire the business' and run them unsustainably the likes of Bolton and Bury as easy examples but there are many more.
ITFC in my opinion was being run in the same manner by ME when he first came in and now the business has debts of around £100mil and runs a deficit year on year.
Fortunately for us as fans of ITFC ME has stuck around and is hopefully wealthy enough to carry on the business and hopefully is now trying to get the business to a level of self sustainabilty, but it is a long hard road to achieve the holy grail now so fingers crossed for the future of the team we support.
None the less we can only live in the here and now and so far an excellent exciting start to the season if only it was two leagues higher haha!!!

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