Football League warn QPR over Financial Fair Play fine
Football League chief executive Shaun Harvey has warned QPR that they face further punishment if they refuse to pay a fine incurred under Financial Fair Play rules.
Harvey revealed that he expects the Premier League club to be among those who have fallen foul of the Football League’s rules when they post their financial results, which are expected to be made public in December.
Rangers posted a pre-tax loss of over £60million for the year ending May 2013 and are expected to post a similar figure for the following period, which they spent in the Championship after their relegation from the top-flight.
Rangers have since been promoted back to the Premier League, but that does not prevent the Football League from hitting them with a £40m fine.
QPR chairman Tony Fernandes has said he will fight any attempts to fine the club, but Harvey is adamant that the League are within their rights to issue the punishment.
“He (Fernandes) is entitled to believe the rules are unfair but they are the regulations that were brought in by all the clubs,” said Harvey. “If he’s going to fight them then he will fight them.
“That would be his right but it’s not one I would necessarily support. But that’s why we have to defend the rules robustly.
“Defending these rules robustly is actually of paramount importance for protecting the integrity of the Football League as a whole."
When asked how QPR’s status as a Premier League club would affect the process, Harvey replied: “Fines can only be applied to clubs that got promoted and any clubs that remain in the Championship can be hit with an embargo.
“So we’ve got the ability to fine them and if they don’t accept the fine we would have to go through an arbitration process to determine the outcome.”
In May, Fernandes said: "My view has been consistent, that it is very unfair for a club that has been relegated as the wage difference between the Premier League and Championship is impossible.
“There should be a time period for clubs to rectify their salaries. If we were in the Championship in two years with that wage bill it wouldn't be right.
“I'm in favour of FFP but it is unfair for a club coming down."
Harvey also defended the Football League’s 'Owners’ and Directors’ test', designed to ensure that clubs are not managed or controlled by individuals who may present a risk to the club’s position.
Reading are currently awaiting the League’s ruling on a takeover of the club by a Thai consortium led by Samrit Bunditkitsada.
“With the owners and directors' test, the applications have been in from the directors and investors (in Reading). I don’t believe there’s anything that will cause any distress from that,” said Harvey.
“We are spending more time on the source and sufficiency of funding to ensure the club is appropriately funded going forward so we know whose money is going into the club.
“But the club is aware of these steps and I think they are quite satisfied with that.”
Leeds president Massimo Cellino was initially barred from buying a 75 per cent controlling stake in the Yorkshire club after failing the League’s test due to him being found guilty of illegally evading import duty by an Italian court.
This was successfully overturned on appeal by an independent QC, who judged that the League was wrong to decide the Italian had acted dishonestly, before seeing the written judgment of the Cagliari court who handed down the Italian’s conviction.
Harvey revealed that the League are still waiting to receive the written judgement, which could lead to further action if it finds Cellino to have acted dishonestly.
“The written judgement hasn’t yet been issued from the Italian courts yet,” added Harvey. “We hope we get it quickly so we can draw line under the whole process.
“It is like a cloud circulating the league and the club. It would be in everybody’s interests to draw a line under that.
“If the judgement stipulates the crime was a dishonest act then it fails one of our standard tests under the directors criteria. It could fail the test so we are in the hands of the Italian judicial service.”