As if getting relegated in a 6-0 drubbing wasn’t reason enough for QPR fans to be dejected, things could be about to get worse. There’s accusations and counter accusations about whether the club breached the Football League’s Financial Fair Play (FFP) rules and it’s all wrapped up in legal arguments.
Crucially if it all goes against QPR then they’ve got a small matter to face – they could be barred from joining the Championship.
So what’s it all about? Here goes…
How much will relegation from the Premier League cost QPR?
In simple terms in the region of £50 million – the club’s turnover would drop by more than £70 million but that will be offset by parachute payments of £24 million in the first year in the Championship.
How much will the club have to pay for financial fair play breaches in the 2013/14 season?
That is the big unanswered question – the club are challenging the legality of the Football League’s FFP rules.
What is the worst case scenario for QPR?
That they will have to pay a fine of £58 million for returning an operating loss of £69.7 million when they were in the Championship in 2013/14.
And the best case scenario?
That an independent arbitration tribunal decides that the Football League’s rules are not enforceable – and they have to pay nothing.
Didn’t QPR announce a loss of only £9.7 million for 2013/14, not £69.7 million?
Well that’s a rather specific question. But yes although that figure included a one-off £60 million income injection classed as an “exceptional item” in the accounts which was to write off loans. The operating loss was £69.7 million.
Are club owners allowed to make that kind of cash injection to avoid FFP fines?
That’s the crux of the matter really. The Football League say no, QPR argue that they should be allowed to – which is what the legal proceedings are all about.
What if the arbitration goes against QPR?
They will have to pay any fine imposed by the Football League or face being barred from entry into the Championship.
Source: SNAPPA
